Mark Your Calendar with PPP Loan Forgiveness Deadline

Dealers that received a Paycheck Protection Program (PPP) loan in 2020 are reminded that their loan forgiveness application is due within 10 months after the last day of the borrower’s covered period.  The PPP “covered period” is the date of your loan origination plus 24 weeks.

For example, if a dealer’s PPP loan origination date was May 10, 2020 (the initial date on which the loan proceeds were deposited into the dealer’s account) the covered period ended on October 30, 2020.  Once that covered period ends, loan payments are deferred for 10 months.  In our example, the dealer would have to submit its PPP loan forgiveness application by August 30, 2021 to avoid making any payments.  

In order to avoid having to pay back loan proceeds, dealers must apply for loan forgiveness before the 10-month deferral period expires.  Failure to submit your forgiveness application on time will require you to start making payments on the loan.

What should dealers do now?

• Confirm the date you received PPP loan funds.

• Calculate 24 weeks from that date.

• Mark your calendar with the date to submit your forgiveness application.

Dealers can access GNYADA’s timeline of relevant government orders to assist in the preparation of their loan forgiveness application here. 

If you have questions about PPP loans, call GNYADA’s Dealer Hotline at 718.746.5900.