Nearly all recipients of Paycheck Protection Program Round 1 loans are well aware that their loans are fully forgivable if spent properly, but in order for the loan forgiveness to actually take place, a forgiveness application must be submitted to your lending bank no later than 10 months after the end of your “covered period”.
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The actual deadline varies based on the date of loan funding as well as your chosen covered period (between 8 and 24 weeks), but the vast majority of PPP Round 1 loans have a forgiveness application deadline sometime in August 2021.
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For example, if your PPP Round 1 loan was funded on May 1, 2020, your forgiveness application deadline would be August 16, 2021 (May 1, 2020 + 24 week max covered period = October 16, 2020 + 10 months = August 16, 2021).
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If borrowers do not apply for forgiveness within 10 months of the last day of the covered period, then PPP loan payments will no longer be forgiven, and loan repayments will begin.
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Your lender should have already contacted you to let you know where and how to complete the application process, but if you have not heard from them or if you have further questions regarding the process, please reach out to our team.