Included in the most recent SBA Frequently Asked Questions (FAQs) document, the SBA clarified that the deferral period for PPP loan borrower payments of principal, interest, and fees is the date that SBA remits the borrower’s loan forgiveness amount to the lender or, if the borrower does not apply for loan forgiveness, ten months after the end of the borrower’s loan forgiveness covered period. This date was automatically extended for all PPP loans from the six-month deferral period specified in the initial SBA guidance. Lenders are required to give immediate effect to the statutory extension and should notify borrowers of the change to the deferral period.
As a reminder, loans distributed prior to June 5, 2020, have the option to choose an 8 or 24 week covered period. All loans distributed on June 5, 2020, or later have an automatic 24 week covered period.
Some lenders are sending statements that reflect interest payable on the PPP loan. If you receive such a statement, contact your lender and request the 10-month extension from the date your covered period ends. If not yet contacted by your lender regarding the change in the deferral period, we urge you to contact them.
As always, please reach out to your AZ consultant with any questions about the deferral period or any other issue related to your PPP loan.