Did your practice get a loan through the Paycheck Protection Program (PPP)? The deadline to apply for forgiveness is fast approaching. Without forgiveness, your loan will become permanent, and you’ll be responsible for payments and interest.
PPP loans automatically convert to standard 1% interest loans if you don’t apply for forgiveness within 10 months of the covered period for spending the money.
If you applied when the program launched in April last year, your deadline falls in mid-July. If your loan had a 24-week covered period, your deadline will be in September.
Your business is eligible for full loan forgiveness if you met the program’s criteria such as maintaining employment and compensation levels and spending at least 60% of loan funds on payroll expenses. For more on applying for forgiveness, review the terms and instructions from the Small Business Administration.