We use cookies to improve your experience and optimize user-friendliness. Read our privacy policy for more information on the cookies we use and how to delete or block them. To continue browsing our site, please click accept.
Winning Back-Office Strategies to Boost Your Business Agility
VIEWpoint Issue 1 | 2023
2023 Compliance Trends: Staying Ahead in an Evolving Regulatory E...
Business owners that took out a first-round Paycheck Protection Program (PPP) loan that had a 24-week covered period should consider applying for loan forgiveness – and soon. If not, the loan may become permanent and you will be held responsible for loan payments and interest. Here’s what you need to know about applying for loan forgiveness so you can avoid these unnecessary costs.
If a PPP loan borrower doesn’t apply for forgiveness with the U.S. Small Business Administration (SBA) within 10 months of the end of the covered timeframe in which they had to spend the loan proceeds, the loan will automatically change into a standard loan at 1% interest. The program launched in April 2020 with some of the first borrowers having an eight-week covered period, then the popular 24-week covered period was introduced. Borrowers operating under the eight-week option had a loan forgiveness application deadline this past July, while those who selected the popular 24-week option still have until September to apply and prevent the loan from converting.
Doeren Mayhew’s PPP advisors highly recommend those with the 24-week covered period to apply for loan forgiveness as soon as possible; it would be unfortunate for a small business to miss out on an opportunity to have their loan forgiven just because they were unaware of their deadline. If your business is ready to file for loan forgiveness and needs assistance with its application, contact our PPP advisors today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
A quick registration is required to view our resources.
You will only be asked to do this one time (unless you don't save your browser cookies).