Question: How Many Weeks Is PPP Good For?

What is the 24 week period for PPP?

If 24 weeks, it begins on the date the loan proceeds are disbursed and ends 24 weeks (168 days) from that date.

Alternative Period – Borrowers with a bi-weekly or more frequent payroll schedule may elect the Alternative Period..

How long do you have to spend the PPP money?

24 weeksThe two biggest changes are: The eight-week period to use your PPP funds has now been extended to 24 weeks. Previously, you had to spend at least 75% of the funds on payroll. You now need to spend only 60% of the funds on payroll.

Do you have to spend PPP in 8 weeks?

Borrowers are no longer locked into the eight weeks. The PPP Flexibility Act states that borrowers with loan numbers after June 5, 2020, automatically have the forgiveness period of 24 weeks or until December 31, 2020. At first, having more time to spend your loan proceeds seems to make more sense.

Is PPP 8 weeks or 24 weeks?

The Paycheck Protection Program Flexibility Act made some significant changes to PPP loans. One of the biggest changes was to the eight-week forgiveness period. If you were assigned a PPP loan number on or before June 5, 2020, you now have the option of taking 24 weeks to spend the funds instead of eight weeks.

What months does PPP cover?

Answer: In general, borrowers can calculate their aggregate payroll costs using data either from the previous 12 months or from calendar year 2019. For seasonal businesses, the applicant may use average monthly payroll for the period between February 15, 2019, or March 1, 2019, and June 30, 2019.

Can I apply early for PPP forgiveness?

A borrower may submit a loan forgiveness application at any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.

What happens after the 8 weeks of PPP?

At the end of the 8-week period from your first receipt of PPP loan funds, you will be able to submit an application to your lender seeking forgiveness of potentially your entire PPP loan balance. That forgiveness will take the form of the SBA’s payment of your loan.

When should I apply for PPP forgiveness?

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.

What is the last date to apply for PPP forgiveness?

Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Answer: No.

Do you have to wait 24 weeks for PPP forgiveness?

This is welcome news for many who were going to spend their entire Paycheck Protection Program (“PPP”) loan after the eight-week period, but well before the end of the 24-week period. A company that spent all of its PPP monies by week 10 will not have to wait another 14 weeks to apply for forgiveness.

How can I get my PPP forgiven?

Use the following tips on how to make sure your PPP loan is forgiven to get started:Use it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness.

Will SBA PPP loans be forgiven?

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years.