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PPP borrowers have up to 10 months to apply for loan forgiveness

COVID-19 Articles

PPP Flexibility Act of 2020In keeping with the Paycheck Protection Program’s goal of keeping more money in the hands of businesses hurt by COVID-19, borrowers have up to 10 months to file forgiveness applications after the last day of the entity’s covered period.

Some clients have told us they started receiving notices from banks asking them to begin repaying the loan based on the original signed agreement.

But under the recently passed Paycheck Protection Program Flexibility Act of 2020, borrowers now can delay PPP Forgiveness Application submission up to 10 months after the last day of your covered period.

It appears some banks have not adjusted their systems to account for the legislative change extending the original period to file for loan forgiveness from six months to 10.

Additionally, borrowers should keep in mind that your bank and the federal Small Business Administration determine loan forgiveness after submission of your application.

If your business has received an early request from your bank to either submit your Forgiveness Application or start repaying the loan, we suggest contacting your lender directly. Discuss with your bank the changes within the PPP Flexibility Act and get their concurrence that you have up to 10 months to apply for forgiveness after the last day of your covered period.

A word of caution: It is critical to meet the 10-month deadline, as noted by the following excerpts from the SBA’s FAQs:

However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.

For more information, click here for a list of frequently asked questions the SBA released this month.

Our team is keeping track of the latest information and guidance. We are here to work with you and your company to help you get the full benefits of COVID-19 economic relief and any other changes made by federal or state governments during and after the pandemic.

Boyer & Ritter can help you navigate the loan forgiveness program’s compliance requirements, help to complete the forgiveness application to help maximize forgiveness, and provide a reliable and trusted source of information for your lender and the government. To learn more about engaging us for PPP Loan Forgiveness Support Services and help determine the level of support you may need, please contact us HERE.

Mark Banks, CPA, CFE, MAFF is a member of Boyer & Ritter LLC’s Advisory Services Group and participates on the firm’s COVID-19 Task Force. Contact the COVID-19 Task Force at

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