Have you applied for forgiveness on your First Draw PPP Loan? If the answer is NO, your first payment on your PPP loan is due soon.
it has been 18 months since our first blog about the CARES Act and PPP loans. If you have not applied for forgiveness on your First Draw PPP loan, your first payment on your PPP is due soon. At this point, there are unlikely to be significant changes to the programs and those borrowers with unforgiven PPP loans should start the forgiveness process as soon as possible.
Here’s what you need to know if you still have not applied for forgiveness on your First Draw PPP loan.
When will my first payment be due?
Payments on unforgiven PPP loans begin 10 months after the end of your covered period (assumed 24 weeks). That means that approximately 16 months after the date you receive you PPP loan your first payment will be due. For those borrowers who received PPP loans
in April 2020, their first payments will begin sometime in August 2021.
What happens if I file for forgiveness before my first due date?
If you file for forgiveness prior to the first scheduled payment, then you will NOT be required to make a payment until a decision has been on
what amount of your PPP loan will be forgiven. Therefore, if you have not applied for forgiveness yet, the sooner the better.
Am I still eligible for forgiveness if I don’t file for forgiveness prior to the first payment due date?
Yes! There is no official deadline to apply for forgiveness and if you apply for forgiveness after you have begun making payments and your
loan is forgiven in full, any payments you made will be refunded to you. However, this is not an ideal situation, and you should try to apply for
forgiveness prior to the requirement to begin making payments. Navigating through all of the information and programs available to impacted businesses may be overwhelming. SH Studio is available to assist as you navigate the best path forward.