Do You Know Your Draw 1 PPP Forgiveness Application Deadline Date?

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. The maturity date is 10 months after the last day of the covered period following loan disbursement, or 10 months from December 31, 2020. Failure to submit a forgiveness application by the deadline will eliminate any potential forgiveness opportunities, and will trigger the repayment terms of the loan, including all accrued interest from the date of disbursement.

First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the covered period following loan disbursement:

* Employee and compensation levels are maintained
* The loan proceeds are spent on payroll costs and other eligible expenses; and
* At least 60% of the proceeds are spent on payroll costs

To apply for loan forgiveness:
1. Contact your PPP lender to confirm your forgiveness application deadline, and the correct form to complete
2. Compile your documentation
3. Submit the forgiveness form and documentation to your PPP lender
4. Continue to communicate with your lender throughout the process

Contact your FMD advisor if you have questions or need assistance in the PPP loan forgiveness process.