The Paycheck Protection Program (PPP) ceased accepting new loan applications on August 8, 2020. Many borrowers have expended funds on eligible expenses are now entering the forgiveness phase of the program; however, with legislation pending regarding automatic forgiveness for loans under $150,000, they are unsure about when to apply.
PPP forgiveness regulations state that borrowers must submit for forgiveness within 10 months of exhausting the loan funds, or by December 21, 2020, so most borrows have 24 weeks in which to apply. Given the pending legislation, and other potential changes to the program, lenders are recommending that borrowers, especially those with loans less than $150,000, hold off on applying for forgiveness until the end of the 24 weeks.
More information on automatic forgiveness is expected when Congress reconvenes at the end of this month. Price Kong will stay updated and provide information as soon as it is released. In the meantime, feel free to contact us with questions at [email protected] or visit our COVID-19 Resource Center.