For small business owners that received Paycheck Protection Program (PPP) loans in 2020, the period to apply for forgiveness is almost over. For those PPP borrowers that do not apply for forgiveness, the PPP loan will automatically turn into a standard loan with a 1% interest rate requiring payments. Small business owners need to apply for forgiveness on their PPP loan within 10 months from the end of the loan covered period. Depending on when the loan was received, the covered period may differ. When the PPP was originally launched in April of 2020, the covered period was 8 weeks. The covered period was later extended to 24 weeks. Most small businesses will have a deadline for forgiveness in September 2021, while some earlier loans will have a mid-July deadline.  

We are encouraging all businesses who have yet to complete the forgiveness application to apply for PPP loan forgiveness sooner rather than later to avoid having to make payments on your PPP loan. According to data from the U.S. Small Business Association (SBA), nearly 40% of the 5.2 million businesses that received a PPP loan last year have yet to apply for forgiveness. While businesses are eligible to apply for forgiveness after they start making payments on their loan, there is no guarantee they will receive refunds on payments already made prior to receiving forgiveness. 

For many businesses that applied for PPP loans, knowing that the deadline was so far in the future may have placed seeking forgiveness on a perpetual “back-burner.” However, with initial deadlines quickly approaching, businesses should now make completing forgiveness applications a priority to avoid paying unnecessary costs.

If you have additional questions about PPP forgiveness or need assistance completing your PPP loan forgiveness application, our PPP loan consultants are here to help. Contact us for more information.

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Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies. 


Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.

Moore Colson CPAs and Advisors Chris Arnone Audit Practice Leader

Chris Arnone, CPA, is a Partner and Business Assurance Practice Leader at Moore Colson. Chris has over 20 years of experience providing audit, accounting and consulting services for companies in the transportation, manufacturing, distribution, staffing, private equity and venture capital industries.


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