Applications for loan forgiveness will be processed by your lender. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. The SBA has issued additional guidance on the Paycheck Protection Program (PPP). The PPP loan application deadline ended on Aug. 8 with over $130 billion left unspent from the funds allocated to the program. 10.15.2020. PPP loans are available for the lesser of $10 million or 2.5 times your average monthly payroll. 3508S. And there are some banks that wonât be announcing their forgiveness process until late August or early September. The issue came into sharper focus when the SBA released the Form 3508S in October with that very same expiration date. The SBA updated its forgiveness FAQ[1] to address this concern, adding Question 4 on page 2 of the FAQ: 4. This instructive white paper outlines common pitfalls in the preparation of the statement of cash flows, resources to minimize these risks, and four critical skills your staff will need as you approach necessary changes to the process. Review your PPP Loan Forgiveness Application options. Trending. President Trump signed a bill extending the deadline … The AICPA’s Paycheck Protection Program Resources page houses resources and tools produced by the AICPA to help address the economic impact of the coronavirus. Allowing certain small businesses to access those funds is among several PPP proposals on the table as Congress and the Trump administration continue to talk about a comprehensive COVID-19-related stimulus bill. In addition, the loan forgiveness application has not been updated to reflect the recent five-week extension of the programâs deadline to Aug. 8. The purpose of this article is to provide updated guidance issued by the U.S. Small Business Administration (the “SBA”) via the instructions for the PPP Loan Forgiveness Application (SBA Form 3508) issued May 15, 2020 and revised June 16, 2020 (the “3508 Application”) and its interim final rule issued Friday, June 26, 2020 (the “6/26 IFR”) to address these questions. The law also drops the required payroll expenditure amount from 75% to 60%. PPP loans are eligible for full or partial forgiveness if the loan proceeds are used in accordance with forgiveness rules and guidelines, which have already been modified several times. Important Update Regarding Simplified Forgiveness. The form, known as SBA Form 350S , is a page and a half and makes the process of applying for forgiveness quicker and more streamlined. You will need to fill out a PPP Loan Forgiveness Application form and submit that to your lender. Thus, even if a borrower fails to apply by the date ten months after the end of their covered period and begin to make payments on the PPP loan, the borrower can still apply for forgiveness of the original PPP loan amount. If you havenât yet applied for the PPP loan, the application deadline (not for forgiveness, but to receive money) is still June 30. The SBA placed the expiration date in the upper-right corner of the PPP loan forgiveness application forms to comply with the Paperwork Reduction Act. This quick guide walks you through the process of adding the Journal of Accountancy as a favorite news source in the News app from Apple. Lenders who worked excessive hours to help small businesses access Paycheck Protection Program (PPP) loans are now scrambling … The new FAQ clarifies when loan forgiveness applications are due. Question from San Diego, California subscriber. Further, this is the third major change to the forgiveness applications for PPP loans, and given the history of changes, borrowers should be aware this might not be the last update this year to the program. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more. forgiveness frequently asked questions document, Keeping you informed and prepared amid the COVID-19 crisis. — Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor. The business completes the PPP loan forgiveness application and gives it to the lender along with any required documentation. The forgiveness application is completed by the small-business borrower and is submitted to their bank or lender whom they received their PPP loan from. 116-136, which was signed into law March 27. Be the first to know when the JofA publishes breaking news about tax, financial reporting, auditing, or other topics. Loan forgiveness deadline. Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Ruth McCambridge October 16, 2020. PPP borrowers can qualify to have the loans forgiven if the proceeds are used to pay certain eligible costs. what is the deadline for ppp loan forgiveness application 2020: 6 results. 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. This prompted the SBA to release a new entry in its loan forgiveness frequently asked questions document answering the query, “Is October 31, 2020, the deadline for borrowers to apply for forgiveness?”. Extended Coverage; Deadline for Forgiveness Application: The covered period of PPP loans was extended, so there is no need for a borrower to rush the loan forgiveness application process. A site devoted to articles on current developments in federal taxes geared toward CPAs in tax practice. Please note that October 31, 2020 is not the deadline to apply.. [1] Paycheck Protection Program Frequently Asked Questions (FAQs) on PPP Loan Forgiveness, SBA website, October 13, 2020, https://www.sba.gov/sites/default/files/2020-10/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29.pdf (retrieved October 14, 2020), [2] Paycheck Protection Program Frequently Asked Questions (FAQs) on PPP Loan Forgiveness, SBA website, General Loan Forgiveness FAQs, Q&A 4, p. 2, Copyright © 2019 Kaplan, Inc. All Rights Reserved, Deadline to Apply for Forgiveness of PPP Loan is Loan Maturity Date, Not October 31, 2020, https://www.sba.gov/sites/default/files/2020-10/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29.pdf. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. By Office of Capital Access. PPP loan forgiveness application A new, simplified version of the application form has been released and can be used for PPP borrowers who received a loan of $50,000 or less. Update to PPP Loan Forgiveness Rules, New Application Deadline Update to the Payroll Protection Program. We’ve recently received questions about the deadline to apply for PPP loan forgiveness and want to provide further clarification on this. Currently, there's north of $100 billion left in the program's coffers. With the extension of the PPP Loan Application deadline to August 8, 2020 and the recent revisions made to the SBA’s interim rules on loan forgiveness, this alert intends to provide a clarification on the calculations involved in applying for PPP Loan and later on, for the forgiveness of it. The Paycheck Protection Program opened up for applications to most businesses on April 3 and for self-employed individuals on April 10. If you were funded on or after June 5, 2020, and have to wait the entire covered period, you wonât be able to apply for forgiveness until November 20 th at the earliest. © Association of International Certified Professional Accountants. Tax; Update to PPP Loan Forgiveness Rules, New Application Deadline ; Update to PPP Loan Forgiveness Rules, New Application Deadline. However, the loan repayment deferral period says that you have until one of the following (whichever is earlier) to start paying back the loan: Applications for loan forgiveness will be processed by your lender. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Here are 8 important tips and warnings on PPP loan forgiveness gleaned from the application and new SBA guidance. Beware of scammers offering a way to get a PPP loan; the Federal Trade Commission filed a ⦠Extends the deadline to use a PPP loan to December 31, 2020, from June 30, 2020. The deadline … The Small Business Administration (SBA) is working to finalize the details on both. The SBA placed the expiration date in the upper-right corner of the PPP loan forgiveness application forms to comply with the Paperwork Reduction Act. This is the first time it appears the SBA has directly provided a specific deadline for applying for forgiveness, allowing borrowers to apply up until the maturity date of their PPP loan.
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