PPP Loan Payment Deferment Ending
July 1, 2021
Borrowers who have received a PPP loan and have not applied for loan forgiveness should be aware that the deferment of the obligation to make loan payments may be coming to an end. The obligation to make payments on a PPP loan is deferred for 10 months from the last day of the loan forgiveness covered period. If the borrower applies for loan forgiveness during that 10-month period, the obligation to make payments continues to be deferred until a determination is made regarding loan forgiveness. However, if the borrower does not apply for loan forgiveness during that 10-month period, the borrower becomes obligated to make loan payments. For borrowers who received a PPP loan toward the beginning of the loan program and only had an 8 week loan forgiveness covered period, the 10-month deferment period will soon be coming to an end. Accordingly, if you received such a PPP loan and have not applied for loan forgiveness, you should apply for loan forgiveness before you become obligated to make loan payments. It should be noted that a borrower can apply for loan forgiveness at any time before the maturity date of the PPP loan.
If you need help with your PPP loan, or other assistance in navigating these difficult times, the attorneys at Rothman Gordon P.C. are ready to assist. Please contact us online or call (412) 338-1169.