PPP Loan 2022: Can you still apply for PPP loans in 2022

The COVID-19 pandemic wrecked havoc across our lives over the past few years, as the United States and wider world came to a standstill due to the lockdowns that were enforced around the world.

One of the most affected groups were small owners, who were forced to shutter their operations following the lockdown and other covid related mandates.

What are PPP loans?

Introduced in March 2020, The PPP emergency loan program was formed as one part of the 2 trillion dollar CARES Act. The act authorised the distribution of more than 600 billion dollars in forgivable loans to small businesses, to help them navigate the pandemic and help ease their losses.

The loans were disbursed over two rounds with most business owners getting up to 2.5 times their monthly pay roll expenses, based on their 2019 and 2020 tax returns.

While the program officially ended in May 2021, small business owners might still be eligible for loan forgiveness.

How to apply for loan forgiveness?

Small business owners can apply for PPP loan forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used.

These borrowers can register for forgiveness any time up to the maturity date of the loan.

However, if a borrower does not apply for the loan forgiveness within 10 months after the last day of the covered period, then the PPP loan payment cannot be deferred, and the borrowers will have to start making loan payments to their PPP lender.

The following steps must be completed in order to apply for the PPP Loan Forgiveness Program:

• Determine if your lender is participating in direct forgiveness through SBA;
• Compile a list of your documentation;
• Submit the forgiveness form and documentation to the SBA or your PPP lender;
• Monitor your application for forgiveness.