Jessica L. Jeane, J.D.
Director of Public Policy and Communications
October 13, 2020
The U.S. Small Business Administration (SBA), in consultation with Treasury, on October 13 released updated FAQs on Paycheck Protection Program (PPP) loan forgiveness. The sub-regulatory guidance is intended for both lenders and borrowers participating in the small business loan program enacted under the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136).
The updated guidance serves to clarify questions surrounding PPP loan forgiveness application forms’ (3508, 3508EZ, and 3508S) display of an expiration date of "10/31/2020" in the upper-right corner. Despite the date stamp, borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination, according to the guidance. “However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan.”
Frequently Asked Questions (FAQs) on PPP Loan Forgiveness
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