What is my covered period?

Learn about the window of time to spend your PPP funds if you want your loan to be forgiven in full.

Note: On January, 11, 2021, the SBA reopened the Paycheck Protection Program for new loans. The SBA also released new loan forgiveness guidance on January 19, 2021. As the SBA issues more complete forgiveness guidance, we will provide updates. Please refer to the latest guidance from SBA and Treasury, and the PPP Loan Forgiveness Application, to confirm current program rules.

Loan Forgiveness Covered Period

Each borrower has a “Loan Forgiveness Covered Period,” which is the period of time during which you’ll need to use your loan funds if you’re hoping to maximize your forgiveness amount.  You don’t have to use all your loan proceeds during the Loan Forgiveness Covered Period, but only eligible costs paid during the period (and certain eligible costs incurred by not paid during that period) are eligible for forgiveness.  Costs incurred after the Loan Forgiveness Covered Period won't be forgiven.

Your Loan Forgiveness Covered Period generally begins on the date you received your PPP funds (or if you received them on more than one date, the first date you received PPP funds), and must end no later than December 31, 2020.  If you received your PPP loan proceeds from your lender on or after June 5, 2020, your Loan Forgiveness Covered Period is 24 weeks. If you received PPP loan proceeds before June 5, 2020, you can choose to use either an 8-week or a 24-week Loan Forgiveness Covered Period.

Alternative Payroll Covered Period (optional, if applicable)

Solely for the purpose of calculating payroll (and certain required reductions), borrowers with biweekly or more frequent payroll may choose an “alternative payroll covered period” that aligns with your payroll cycle. The alternative payroll covered period begins on the first day of the first pay period following receipt of your PPP funds. For example, if you received your PPP funds on Monday, April 20, and the first day of your first pay period following receipt of your PPP funds is Sunday, April 26, the first day of the alternative payroll covered period is April 26 and the last day of the alternative payroll covered period is Saturday, June 20. If you choose to use this alternative period, it applies only to payroll costs and certain required reductions.

Regulations and guidance from the SBA and the U.S. Department of the Treasury on the PPP are evolving rapidly and the above information may be outdated. Please refer to the latest guidance from SBA and Treasury to confirm current program rules and how they apply to your particular situation.

The funding described is made available to businesses located in the United States of America and are not available in other locations.

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