The Forgiveness Platform is open for our clients who received a First Draw loan during the 2020 origination period. For First Draw and Second Draw loans originated in 2021, we are targeting Q4 2021 to begin accepting forgiveness applications. This will allow time for some expected changes to the Forgiveness process to take effect, which we believe will be advantageous for our clients.
Please note, in some cases the SBA has gone beyond the 90-day allotted period for completing review of our forgiveness recommendation and issuing a decision. If your application’s status is listed as “Submitted to SBA” in the Forgiveness portal, we are not able to provide an additional update other than that your application is under review by SBA.
Additionally, if your forgiveness application status is listed as “SBA Approved” in the Forgiveness portal, this means our recommendation has been approved and your loan has been forgiven for the amount submitted. You will also receive a statement of account from us showing the balance remaining on your PPP loan, if any, as well as a system-generated e-mail stating your loan has been forgiven. SBA does not issue an official forgiveness letter to borrowers upon approval of our forgiveness recommendation.
- I received my first draw PPP loan during 2020. Is there a deadline for applying for Forgiveness?
There is no deadline for submitting a forgiveness application. The deferment period established by law states you will never owe a payment for principal or interest for 10 months following the end of your Covered Period, which for deferment period purposes is 24 weeks.
If you do not submit your forgiveness application within 10 months following the 24-week Covered Period, you will need to begin making monthly principal and interest payments at that time.
This means you will not owe any payments for principal or interest until 16 months after the disbursement date of your PPP loan.
- I received my first draw PPP loan on April 10th, 2020 and intend to apply for forgiveness. What date do I need to apply by to ensure I do not need to start making payments on my loan?
In this example, the payment deferment period would end on July 28, 2021*. As long as you apply for forgiveness prior to this date, you will not need to make a payment for principal or interest until the SBA provides a final forgiveness decision regarding your application. If you receive full forgiveness, you will never need to make a payment on your loan.
- I received my Second Draw PPP loan on March 8th, 2021 and intend to apply for forgiveness. What date do I need to apply by to ensure I do not need to start making payments on my loan?
In this example, the payment deferment period would end on June 25th, 2022. We are targeting Q4 2021 to begin accepting forgiveness applications for 2021-originated loans.
It has been our honor to serve you during these trying times, and we are still not slowing down. Thank you for partnering with us for your Paycheck-Protection-Program needs.