Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Should I wait to submit my PPP loan forgiveness application?

It’s recommended you apply for forgiveness before you need to make your first PPP loan payment. Here’s why. PPP loans have a covered period of 8 to 24 weeks after the funds hit your bank account. Once that covered period ends, your loan payments are deferred for 10 months.

Do I have to wait 8 weeks to apply for PPP loan forgiveness?

Eight weeks must pass from the time you get the First Draw PPP until the Second Draw PPP is disbursed to you. You can apply for the Second Draw before the 8 weeks has passed. However, if you do so, you want to make sure you don’t accept the Second Draw money until after 8 weeks.

Should I use the 8 week or 24-week period for PPP forgiveness?

You may be able to wrap up the forgiveness process earlier. If you reduce your full-time employee count or employee wages after the 8-week period, that might reduce your eligible forgiveness amounts. However, a longer, 24-week covered period gives you more time to remedy any reductions in employee count or wages.

When is the best time to apply for loan forgiveness?

Yes, you can apply for forgiveness early. You don’t necessarily have to wait until the end of your covered period. However, If you apply before your covered period ends and reduce any employee’s salaries or wages in excess of 25%, that may reduce your eligible forgiveness amount. How to Apply for PPP Loan Forgiveness

When to apply for PPP loan forgiveness, 8 weeks or 24 weeks?

8-week minimum: The shortest covered period available is 8-weeks. Your covered period may not be less than an 8-week period. Your covered period may not be less than an 8-week period. 24-week maximum: The longest covered period available is 24-weeks.

How long does it take to repay a student loan forgiveness?

While these federal forgiveness programs typically require five or more years of repayment before offering forgiveness, state-run loan repayment assistance programs (LRAPs) often offer rewards much sooner.

When to apply for loan forgiveness under the CARES Act?

The covered period extension and change were made with retroactive effect as if it were originally enacted in the CARES Act. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.