July 23, 2020
If I don’t use all my money, do I have to give it back?
Posted by Armanino Financial Advisory Team
Any money not spent during the Covered Period will convert into the remaining principal of your note which amortizes at one percent over two years (five years for new loans issued after the enactment of the PPP Flexibility Act, beginning June 5, 2020). For loans issued prior to enactment of the Flexibility Act, it is up to the borrower and lender to agree to extend the terms beyond the original two years to as long as five years. You will not be required to make any payments against the note until the date the forgiveness amount has been reimbursed from the SBA to the lender. Note that the lender has a 60-day window to render a forgiveness decision once the borrower’s application has been received, and the SBA has an additional 90 days to finalize the forgiveness and reimburse the bank following the lender’s decision process.