Borrowers can apply for forgiveness after they have spent all of the loan money they want forgiven. ... For PPP loans issued after June 5, 2020, borrowers are given six months to spend the cash. They don't have to start repaying the loan until 10 months after the spending period ends.
How do I make sure my PPP loan is forgiven?
Use the following tips on how to make sure your PPP loan is forgiven to get started:
- Use it for eligible expenses.
- Keep your employee headcount up*
- Don't reduce an employee's wages by more than 25%*
- Document everything.
- Talk with your lender.
- Apply for loan forgiveness.
Are PPP loans automatically forgiven?
The loans are designed to be forgiven, but it's not automatic. Recipients can keep the money if they demonstrate that they used it for certain purposes and largely refrained from cutting jobs and pay.
