The date you received your PPP Loan proceeds in your bank account is known as your PPP Loan Disbursement Date. If you got your funds on April 20th, That is the first day of your Covered Period.
What period of time does the PPP cover?
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.
When does the PPP loan cover period end?
the PPP Loan Disbursement Date (referred to as the Alternative Payroll Covered Period). However, if a borrower pays twice a month or less frequently, it will need to calculate payroll costs for partial pay periods. The Covered Period or Alternative Covered Period for any borrower will end no later than December 31, 2020.
When do you have to make a decision on your PPP loan?
We will also discuss how you should go about making your decision. The major changes the PPPFA made that you need to factor into your decision are: It extended the “covered period” (the time frame in which you may spend your loan proceeds) from eight weeks to 24 weeks.
How to choose 8 weeks or 24 weeks for PPP?
Second, you should compute your average number of FTE employees during the eight-week covered period and compare that to the average number during the comparison period. As mentioned in the earlier article, the Small Business Administration (SBA) gives you a choice of two comparison periods.
When is interest forgiven on a PPP loan?
10 months after the last day of your covered period, if you have not applied for forgiveness. If your loan is forgiven, any interest accrued during the deferral period is eligible for forgiveness. After the deferral period any balance that is not forgiven (including any accrued interest on the unforgiven portion) will become a term loan.
