QUESTION: I’m really confused on the Payroll Protection Program (PPP) loan forgiveness application deadline. I’ve read some advice on waiting to apply to better justify our expenses and keep more of our payments. However, the form indicates that it expires 10/31/2020. Can you explain this difference?
Question from San Diego, California subscriber
ANSWER: The Small Business Administration (SBA) extended how long the forgiveness application forms (3508, 3508EZ, and 3508S) are good for. While the forms have an expiration date of October 31, 2020 displayed in the upper-right corner, you can still use the forms. Eventually, the SBA will announce a new deadline and then post the same forms with the new expiration date.
You may submit your PPP loan forgiveness application any time before your loan’s maturity date, which is either two or five years from your loan’s origination, but waiting this long has it’s financial penalties:
- If you don’t apply for loan forgiveness within 10 months after the last day of your loan’s forgiveness covered period, you’ll have to start making loan payments.
- For example, say your loan period ends on October 30, 2020; you have until August 30, 2021 to apply for forgiveness before you’ll have to begin payments.
For PPP funding strategies to keep ALL your loan money, accounting experts, Lin Walker and Manuel “Manny” Cosme, CPA, CPC, can help. During their upcoming online training session, “Keep 100% of Your PPP Money: Forgiveness Application Strategies,” they’ll walk you through how to accurately complete each of the three PPP Loan Forgiveness applications.
