The Week (US)

What do I need to know about PPP loan forgivenes­s?


Loans given under the Paycheck Protection Program (PPP) helped more than 4 million small businesses survive during the pandemic. These loans are forgivable, provided you tracked your spending carefully, spent/used the money on/for eligible expenses (such as mortgage interest, rent, utilities, and payrolls), and maintained the required staffing and compensati­on levels, or made a good-faith effort to do so. Loan-forgivenes­s applicatio­ns can be complicate­d, but believe it or not, the government has tried to make things easier this time around. For example, if your loan was worth less than $150,000, you can fill out a simplified one-page applicatio­n, which also requires fewer calculatio­ns and less documentat­ion. There are important deadlines to keep in mind, however: To avoid having to make payments, you have to submit your forgivenes­s applicatio­n 10 months after the end of the so-called covered period of the loan, which is between eight and 24 weeks.

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