SBA / Treasury FAQ – 20. The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an 8 week or 24 week period; when does that period begin?

Compliance > CARES Act
Q:  The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an 8 week or 24 week period; when does that period begin?
 
A:  The eight-week or 24-week period starts on the date your lender makes a disbursement of the PPP loan to the borrower. The lender must disburse the loan no later than 10 calendar days from the date of loan approval.The Paycheck Protection Program Flexibility Act of 2020, which became law on June 5, 2020, extended the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. The 24-week period applies to all borrowers, but borrowers that received an SBA loan number before June 5, 2020, have the option to use an eight-week period.
 
 

This revised Q&A was based on information contained in the Treasury Department’s June 25, 2020, issuance “Paycheck Protection Program Loans, Frequently Asked Questions,” which is updated from time to time.  This CARES Act / SBA / PPP related issuance may be found here:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

 
 

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