2021 PPP Loan Forgiveness Resources
PPP Loan Forgiveness Updates
Updated June 14, 2021: The Union Bank Company began sending 2021 PPP forgiveness invitations. Invitations are being sent in order of loan origination date. We expect all 2021 PPP borrowers to be invited to apply for forgiveness by August 31, 2021. If you need an expedited forgiveness process, please email email@example.com.
Updated October 2, 2020: The Small Business Administration has issued guidance on PPP borrower changes in ownership. Borrowers must notify the bank in writing prior to the closing of any change in ownership. An escrow account equal to the outstanding balance of the PPP loan will need to be established. The bank may approve the change in ownership with SBA approval, as required.
Paycheck Protection Program - Loan Forgiveness Details
- Covered Period Flexibility
Borrowers may choose a covered period for any length of time between 8 weeks and 24 weeks after loan disbursement.
- 75% rule reduced to 60%
Now borrowers must spend at least 60% on payroll, not the 75% in the original bill.
- New PPP loans will have a minimum maturity of 5 years
New borrowers now have 5 years to repay the loan instead of 2 years. Existing PPP loans can be extended up to 5 years if the lender and borrower agree. The interest rate remains at 1%.
- Extend Loan Forgiveness Period
The deferment period has been extended from 6 months to the date the SBA remits the borrower’s loan forgiveness to the bank, or within 10 months of the last day of the covered period, if the borrower doesn’t apply for forgiveness.