FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
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Treasury and the SBA established a standard
six-month deferral on payments.
What will change: Payments will be deferred
until the date on which the amount
of forgiveness determined under section
1106 of the CARES Act is remitted to the
lender. Essentially, this will allow the borrower
to avoid having to make payments
until forgiveness is determined. A borrower
has 10 months to apply for forgiveness
or must start making payments. The
10-month period starts the last day of the
PPP loan forgiveness covered period (24
weeks after the loan is originated or Dec.
31, 2020, whichever comes first).
What happens next?
With the exception of the five-year loan
repayment period, these provisions will
apply to all PPP loans, including those
made before this legislation became law.
As has happened in the past, Treasury and
the SBA will likely provide guidance that
may affect how different provisions are
implemented. v
Please note
The material contained in this article is for
informational purposes only, is general in
nature, and should not be relied upon or construed
as a legal opinion or legal advice. Please
keep in mind this information is changing
rapidly and is based on our current understanding
of the programs. It can and likely will
change. Although we will be monitoring and
updating this as new information becomes
available, please do not rely solely on this for
your financial decisions. We encourage you
to consult with your lawyers, certified public
accountants and financial advisers.
With the exception of the five-year loan
repayment period, these provisions will
apply to all PPP loans, including those
made before this legislation became law.
As has happened in the past, Treasury
and the SBA will likely provide guidance
that may affect how different provisions
are implemented.
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