Quick Answer: How Long Do You Have To Pay Back The PPP?

What documents are needed for PPP loan forgiveness?

For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms.

Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e.

vacation, parental, family, medical, or sick leave)..

What are the rules for the PPP loan forgiveness?

Loan Forgiveness. Borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.

When should I apply for PPP forgiveness?

You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.

Do I have to apply for PPP loan forgiveness?

Extended Coverage; Deadline for Forgiveness Application: The covered period of PPP loans was extended, so there is no need for a borrower to rush the loan forgiveness application process. … If a borrower received its PPP loan before June 5, 2020, the PPPFA allows the borrower to elect to use an 8 week covered period.

What are the new rules for PPP loan forgiveness?

The PPP allows loan forgiveness for payroll costs — including salary, wages, and tips — for up to $100,000 annualized per employee, or $15,385 per individual over the eight-week period. The new interim final rule establishes the 24-week maximum for full loan forgiveness at $46,154 per individual.

Do I have to pay back the PPP?

Yes. PPP loans (the full principal amount and any accrued interest) may be forgiven, meaning they do not have to be repaid. If you do not apply for forgiveness, you will have to repay the loan. … Businesses have up to 24 weeks from the date you received the loan to spend the funds and be eligible for loan forgiveness.

What happens if my PPP loan is not forgiven?

What if my loan isn’t forgiven in full? You will have to repay any amount of the PPP loan that is not forgiven at a 1% interest over a 5 year term. Loan payments will be deferred for six months but will start incurring interest immediately. PPP loans have no fees and no prepayment penalties.

Will PPP loans be automatically forgiven?

For loans between $50,000 and $150,000, recipients would have to request forgiveness with “a simplified one-page application form that does not require the submission of any documentation.” This has not been passed by the Senate, though, so currently there’s no automatic PPP forgiveness no matter how small the loan is.

What happens if you don’t pay back PPP?

Loan defaults All PPP and EIDL loans up to $25,000 don’t require collateral or personal guarantees from the business or business owner. So, in the event a borrower can’t repay the loan and defaults, the lender generally wouldn’t be able to seize business or personal assets.