WASHINGTON—The Small Business Administration (SBA) has a new FAQ for its Paycheck Protection Program (PPP) addressing the date by which borrowers need to apply for forgiveness.
In the SBA's updated FAQs on forgiveness, Question No. 4 notes that PPP loan forgiveness application forms list an expiration date of Oct. 31, 2020. However, the SBA clarifies that this date is for "SBA’s compliance with the Paperwork Reduction Act, and reflects the temporary expiration date for approved use of the forms. This date will be extended, and when approved, the same forms with the new expiration date will be posted."
The answer further explains that borrowers can submit a loan forgiveness application at any point before the maturity date of the loan, which is either two years or five years from loan origination. After the 10-month deferment period, borrowers must begin making payments on the loan if they have not yet applied for forgiveness, NAFCU noted.
The PPP forgiveness application portal launched Aug. 10 and the SBA said it began processing applications Oct. 2. There are three forgiveness applications: A standard one, an EZ version for borrowers meeting certain criteria, and the simplified version for loans under $50,000.