April 16, 2020 Coronavirus en_US Need to apply for a Paycheck Protection Program loan? Unsure of when the deadline is for submitting your application. Take a look at this article. https://quickbooks.intuit.com/cas/dam/IMAGE/A9lYc0CXU/deadline-apply-paycheck-protection-program-md.jpg https://quickbooks.intuit.com/r/coronavirus/paycheck-protection-program-deadline/ When is the deadline to apply for a Paycheck Protection Program loan?
Coronavirus

When is the deadline to apply for a Paycheck Protection Program loan?

By Katie McBeth April 16, 2020

Editor’s note: Regulations and guidance from the SBA and the U.S. Department of Treasury on the PPP are evolving rapidly. Please refer to the latest guidance from SBA and Treasury to confirm current program rules and how they apply to your particular situation. The information contained in this article only applies to certain small businesses and other eligible organizations. For example, effective April 30, 2020, if you filed a 2019 IRS Form 1040 C, other rules apply.

PPP loans are a cornerstone of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. Small businesses, self-employed individuals, and other eligible businesses and organizations impacted by the coronavirus may find financial relief through the Paycheck Protection Program.

The CARES Act, signed into law in March 2020, originally consisted of $349 billion in aid for small businesses and other eligible businesses to be administered through the Paycheck Protection Program. The government recently authorized an additional $310 billion in government-backed loans. Eligible businesses can apply now through SBA-approved PPP lenders. The U.S. Department of the Treasury recommends potential borrowers submit applications as early as possible.

When can I apply for loan forgiveness?

Following the loan forgiveness covered period after the lender sent the PPP loan funds to the borrower, the borrower can apply for loan forgiveness with their lender. Loan proceeds used to cover eligible expenses within the covered period may be forgiven, in whole or in part, under certain criteria.

For loans made on or after June 5, 2020, your loan forgiveness covered period is 24 weeks. For loans made before June 5, 2020, you can choose to use either an 8-week or 24-week loan forgiveness covered period.

What are loan forgiveness requirements under the PPP?

A PPP loan may be forgiven, in whole or in part, if you use the funds as directed by the SBA and meet certain criteria. For example, at least 60% of the loan forgiveness amount must be attributable to eligible payroll costs.

In addition, your forgiveness amount may be reduced if you do not maintain the same number of employees on the payroll or maintain employee salary levels.

Rehire and restore wages to employees who were laid off between February 15 and April 26, 2020, by December 31, 2020 to avoid any reductions.

Before applying for PPP loan forgiveness, borrowers will need to organize their documentation, including information regarding payroll costs, mortgage interest, rent, utility, and other costs paid within the covered period after the lender sent their PPP loan funds to them.

For more information on loan forgiveness, please refer to the latest guidance from the SBA and Treasury.

If you don’t receive all the relief you need from the Paycheck Protection Program, you may consider other federal and private funding options.

Regulations and guidance from the SBA and the U.S. Department of 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 resources described above are made available to businesses within the United States of America.

Given the large demand for additional authorized Paycheck Protection Program funds, not every qualified Paycheck Protection Program applicant will receive a loan.

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.

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Katie McBeth

Katie McBeth

Prior to joining the QuickBooks marketing team, Katie McBeth spent her time writing for various blogs across the web, including Quiet Revolution, Fortune Magazine, and many more. Her writing focus is on small business management, marketing, and recruitment. When she’s not writing, she’s hanging out with her small private zoo of three cats, two dogs, and dozens of plants. Read more