New SBA Guidance Clears Up PPP Forgiveness Application Due Date

  |   October 14, 2020

If you’re a business owner who may be confused about the due date for your Paycheck Protection Program (PPP) forgiveness application, you can relax.

The Small Business Administration (SBA) released guidance on October 13, 2020 that confirms PPP loan forgiveness applications are not due on October 31 – and explains what probably caused the confusion.

Concerns had arisen among many PPP borrowers because the program’s loan forgiveness application forms (3508, 3508EZ and 3508S) show an expiration date of “10/31/2020” in the upper-right corner. However, the new SBA guidance explains that this expiration date is the temporary expiration date for approved use of the forms. According to the SBA, this complies with the Paperwork Reduction Act of 1980, and when a new expiration date is approved, it will be used on the forms.

To clear up matters for borrowers, the SBA has released a new entry in its General Loan Forgiveness FAQ.

In the answer to question four in the document, the SBA explains that borrowers may submit a loan forgiveness application any time before the maturity date of the loan – either two or five years from the loan’s origination, depending on the borrower’s agreement.

However, borrowers are reminded that loan payments are deferred only until 10 months after the last day of each borrower’s loan forgiveness covered period. As an example, the SBA notes that a borrower with a covered period that ends on Oct. 30, 2020 has until Aug. 30, 2021 to apply for forgiveness before loan repayment begins.

How REDW Can Help

REDW is here to help you navigate the PPP, especially forgiveness issues. Please contact REDW Principals James Ortiz or Christina Roderick to discuss any concerns about PPP-related issues.


REDW is committed to keeping you informed at all times, and especially through the ramifications of the COVID-19 pandemic. Stay connected with us on LinkedIn and @REDWLLC on Twitter. Access some of our other updates on our COVID-19 Resource Hub.

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