On Oct. 13, the Small Business Administration and Department of Treasury released updated FAQ guidance related to the Paycheck Protection Program loan forgiveness application, clarifying the deadline for borrowers to apply for forgiveness. Although application forms 3508, 3508EZ and 3508S display an expiration date of Oct. 31 in the upper-right corner, this is not the deadline to submit forgiveness.
The deadline for applying for loan forgiveness is governed by the terms of a business’s PPP loan. Businesses may submit a loan forgiveness application any time before the maturity date of the loan, either two or five years from the loan origination. However, a borrower must apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period; otherwise, loan payments no longer are deferred, and the borrower must begin repayment.
The expiration date on the applications was listed for SBA’s compliance with the Paperwork Reduction Act and reflects a temporary expiration date for approved use of the forms. This date will be extended, and the same forms with a new expiration date will be posted. For more information and updates, visit SBA.gov or Treasury.gov/CARES.
