Deadline nears for businesses to apply for PPP loan forgiveness

LEXINGTON, Ky. (WTVQ) – Repayment of federal Paycheck Protection Program (PPP) loans will begin this month for early 2020 borrowers who have not yet applied for forgiveness.

By submitting a forgiveness application, required principal and interest payments are forestalled until the Small Business Administration (SBA) decides on forgiveness of the loan, the Chamber said.

Approximately 71% of total PPP loan borrowers have yet to apply for forgiveness.

The earliest PPP loans were issued on April 3, 2020. If a borrower received its PPP loan funds on that date and chose the 24-week covered period, the borrower’s first payment on the loan is due on or about July 17, 2021.

A borrower must apply for forgiveness within 10 months of the end of its covered period to avoid having to make principal and interest payments on the loan.

In addition, if the SBA determines that the loan is not eligible for forgiveness (in whole or in part), the PPP loan is no longer…

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