PPP Timelines and Dates – Important PPP dates you need to know
As the coronavirus pandemic continues to ravage the economy, the Paycheck Protection Program (PPP) has become a lifeline for many small businesses. The PPP provides forgivable loans to small businesses to help them pay their employees and other expenses. But how long do you have to pay back a PPP loan?
The answer depends on the size of the loan and the terms of the loan. For loans of less than $50,000, the repayment period is two years, with the first six months of payments deferred. For loans of more than $50,000, the repayment period is five years, with the first year of payments deferred.
At the end of the repayment period, your loan balance will be forgiven if you have used the loan funds for eligible expenses as outlined in the loan agreement. To be eligible for forgiveness, you must have used at least 60% of the loan funds for payroll expenses and the remaining 40% for other eligible expenses. If you don’t meet this requirement, you may still be able to receive partial forgiveness for the portion of the loan that was used for eligible expenses.
The loan forgiveness process is relatively straightforward and starts with submitting a loan forgiveness application to your lender. This application must be completed and submitted to the lender within 10 months of the end of the loan’s covered period. Once the application is received, the lender has 60 days to review the application and make a decision on the forgiveness amount.
-The repayment period for a PPP loan depends on the size of the loan. Loans of less than $50,000 have a two-year repayment period, and loans over $50,000 have a five-year repayment period.
-At the end of the repayment period, the loan balance may be forgiven if the loan funds were used for eligible expenses.
-To be eligible for loan forgiveness, you must have used at least 60% of the loan funds for payroll expenses and the remaining 40% for other eligible expenses.
-The loan forgiveness process starts with submitting a loan forgiveness application to the lender. This application must be submitted within 10 months of the end of the loan’s covered period.
-The lender has 60 days to review the application and make a decision on the forgiveness amount.
People Also Ask:
Q: How long does it take to receive loan forgiveness?
A: It takes 60 days for the lender to review the application and make a decision on the forgiveness amount.
Q: What is the minimum amount I have to spend on payroll expenses in order to be eligible for loan forgiveness?
A: To be eligible for loan forgiveness, you must have used at least 60% of the loan funds for payroll expenses and the remaining 40% for other eligible expenses.
Q: What happens if I don’t use the loan funds for eligible expenses?
A: If you don’t use the loan funds for eligible expenses, you may still be able to receive partial forgiveness for the portion of the loan that was used for eligible expenses.
How Long Do You Have To Pay Back A Ppp Loan – How to Choose
Confused about the key dates and timelines associated with the Paycheck Protection Program (PPP)? Well, it’s understandable considering the changes to the timelines that happened after the PPP Flexibility Act was passed. Do you have 8 week or 24 weeks to use the money? Do you have to tell the bank NOW which one you want to use?
How long will it take for the bank to approve your PPP application? How long will the SBA take? How long are they allowed to take?
In this video we walk through a timeline of the PPP forgiveness process. We answer the following questions: How long do you have to spend your PPP money? When does your covered period start? What is the disbursement date? When does your covered period end?
The key PPP timelines and dates are discussed and drawn out for you in this video!
Getting maximum forgiveness for your PPP loan is our goal in putting this information out in the world.
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Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Clara CFO Group, LLC or its members cannot be held liable for any use or misuse of this content.