You have until your current loan maturity date to request Forgiveness, but your payments will begin after your deferral period ends. If you do not file for forgiveness, your deferral period will end 10 months after the last day of the maximum covered period of 24 weeks. Your covered period commences on the day that we disbursed your PPP loan proceeds
When will I have to start making payments?
You should have plenty of time to request Forgiveness once we start accepting Forgiveness requests again in March. If you submit a Forgiveness request within 10 months after the end of the 24-week covered period, you don’t have to make a payment until after the SBA remits a forgiveness payment, if any, or decides that you are not eligible for forgiveness.
What is the Covered Period?
The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the Borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement. For example, if the Borrower received their PPP loan proceeds on Monday, April 20, 2020, the first day of the Covered Period is Monday, April 20, 2020 and the final day of the Covered Period is any date selected by the Borrower between Sunday, June 14, 2020 and Sunday, October 4, 2020.
Note if you have a first and second PPP loan, the Covered Period you choose for each cannot overlap. This means when you submit a Forgiveness request for your 1st PPP loan, your chosen covered period end date cannot be later than the disbursement date of your 2nd PPP loan.
Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the Covered Period (“payroll costs”). Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period.
An eligible nonpayroll cost must be paid either during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.