PPP Recipients: Loan Invoices Are Coming

Don’t Wait To Submit Your PPP Loan Forgiveness Application

Have you filed your Paycheck Protection Program (PPP) loan forgiveness application yet? Well, because the Small Business Administration (SBA) requires a 90-day turnaround to approve forgiveness applications, your time could be running out to pull yours together. Of course, your specific deadline to apply will depend on when your PPP funds were received and, thus, the maturity date of your specific loan.

Are you wondering when your PPP loan forgiveness application is due? According to the SBA’s website:

“A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Small Business Administration

How To Avoid Receiving A PPP Loan Payment Invoice?

According to the legislation, invoices for loan payments will begin 10 months following the end of the 24-week covered period. This is essentially 6 months from the loan disbursement date. Collectively, the timeline includes the time necessary for the SBA to review and approve your request for loan forgiveness.  Once you have made a payment, that portion of the loan is no longer forgivable. So, to get maximum forgiveness, it is important to get your forgiveness process completed prior to the due date of that first payment.

How Long Does It Take To Approve PPP Loan Forgiveness?

Even though the SBA has a 90-day window to determine whether your application will be approved, as long as your application is complete and submitted in a timely manner, the process usually doesn’t take very long. In my experience, it’s certainly less than the 90-day timeline allotted. Even so, loans greater than $2M typically require a longer review period due to the added requirement of having to complete the necessity questionnaire – which also has to be reviewed by the SBA prior to arriving at a final decision.

All this to say, if you received PPP assistance, but still haven’t completed the forgiveness application or necessity questionnaire (if applicable), what are you waiting for?


Click here to check out our Resource Center for COVID-related financial assistance for employers impacted by COVID-19.

How To Apply For PPP Loan Forgiveness?

If you are not sure how to start the PPP loan forgiveness process, the first step is to reach out to your PPP lender to request instructions and a link to their online forgiveness portal.

Next, you will need to compile all relevant documentation, including (if applicable):

  • Bank account statements.
  • Third-party payroll service provider reports.
  • Payroll tax filings reported (or that will be reported) to the IRS.
  • State quarterly business and individual employee wage reporting.
  • Unemployment insurance tax filings reported (or that will be reported) to the state.
  • Payment receipts, cancelled checks, or account statements that document the amount of any employer contributions to employee health insurance and retirement plans that may have been included in the forgiveness amount.
  • Mortgage interest payment documents for your business.
  • Rent or lease payment documents for your business.
  • Utility payment documents for your business.

The amount of your loan and your specific situation will determine what information is necessary to apply for forgiveness. Finally, after all necessary information and documents have been compiled, submit all material to your PPP lender through their portal.

As always, if you have any questions, please reach out to me directly, or any member of the Rea team, for assistance.

By Paul McEwan, CPA, MTax, AIFA (New Philadelphia CPA Firm)


Are you looking for more information about the PPP loan forgiveness application? Check out these resources:

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