June 29, 2021
While I realize this is probably not on your list of things to do any time soon, we need to look back at 2020 for a moment. Remember the Paycheck Protection Program? I know many remember all of the controversy it caused, but, for small business owners who received first round funds, we need to remember that the time to apply for forgiveness is looming for many of us.
So when do you need to apply for forgiveness? Time for some math. First you need to know how long your covered period was (the length of time you had to use the funds). This ranges from 8 to 24 weeks. Then add on ten months. You will want to apply before that time, or you will need to start making payments.
Your application will go to your lender. They will then send their decision along to the SBA. The SBA may opt to review your application, and you have the right to appeal certain decisions. Your lender will let you know how much of your loan has been forgiven and, if applicable, when your first payment is due and how much it is.
I wanted to link to past blogs on the subject, but frankly this has changed more often than I change clothes looking for the right date night outfit. Instead I am going to point you to the SBA website where they discuss what is forgivable and the different applications.
Because some of this is dependent on when you got your loan, what you used it for, and how much you received, I suggest you reach out to your financial institution to determine the best way for you to apply for forgiveness. Your accountant might also be able to help you gather any documentation that you might need. And, as always, I am here to help if you need it!
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