How do you know if your PPP loan is 8 weeks or 24 weeks?

Should I use 8 weeks or 24 weeks for my PPP loan covered period 2021?

COVERED PERIOD:

The covered period is the period beginning on the date the lender disburses the PPP loan and ending on the date selected by the borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement (the “Covered Period”).

What is the 24-week covered period PPP?

The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or (2) if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day) Covered Period. In no event may the Covered Period extend beyond December 31, 2020.

How do I know my PPP covered period?

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 ends on a date selected by you between 8 to 24 weeks thereafter.

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How do I calculate my PPP loan at 8 weeks?

Answer: The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval.

Do I have to use my PPP loan in 8 weeks?

Borrowers are no longer locked into the eight weeks. The PPP Flexibility Act states that borrowers with loan numbers after June 5, 2020, automatically have the forgiveness period of 24 weeks or until December 31, 2020. At first, having more time to spend your loan proceeds seems to make more sense.

Do you have to spend PPP in 8 weeks?

The two biggest changes rolled out in June 2020 were: The eight-week period to use your PPP funds was extended to 24 weeks. Previously, you had to spend at least 75% of the funds on payroll. You now need to spend only 60% of the funds on payroll.

Do I have to wait 24 weeks for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

Can you go to jail for PPP loan?

Small Business Administration.” The Small Business Administration (SBA) is the agency responsible for administering the PPP. Violations of Section 1014 carry the potential for up to a $1 million fine and 30 years of federal imprisonment.

Is PPP for 8 weeks or 10 weeks?

A borrower may select a covered period between 8 weeks and 24 weeks, which commences upon disbursement of the PPP loan proceeds. The flexibility on the part of a borrower to choose a particular covered period within that range was a feature added pursuant to the Economic Aid Act.

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Do I have to use PPP funds immediately?

If a borrower received its PPP loan prior to June 5, 2020, the borrower may elect to use the original eight-week (56-day) period (also referred to as the Covered Period) immediately following the date the loan was disbursed by the lender (Disbursement Date) for determining which loan proceeds are eligible for …

What is the deadline for PPP loan forgiveness 2021?

First PPP Loan Forgiveness Deadline is August 30, 2021. If you obtained a PPP loan, your covered period starts on the day the loan money was deposited. The covered period length could be from 8 to 24 weeks.