PPP Loan Forgiveness Timeline May Be Extended

Bipartisan Support Growing To Give Small Business Owners More Time



The Paycheck Protection Program was hailed for its promise to help small businesses survive the COVID-19 crisis. The PPP Loan program provides eligible small business owners with a loan worth up to 2.5 times its average monthly salary obligations. The goal of the program is to help small business owners continue paying their employees in the face of social distancing requirements and forced closures.

Businesses could have the loans forgiven if they used the funds for qualified expenses, such as payroll and benefits, rent, interest on mortgage payments, and utilities. However, only expenses incurred during the 8-week period after the loan was issued are eligible for forgiveness. Any funds not used for eligible expenses would be converted to a low-interest loan with a two-year payoff period.

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Source: Forbes

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