In June 2020, Congress passed The Flexibility Act, which changed the deferment period from 6 months post covered period to 10 months post covered period. This means the PPP loan due date reflected in your current loan paperwork is incorrect—but
it also provides you additional time. For example, if your covered period ended June 30, 2020, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2021, and you have until then to request forgiveness.
In the event that all or part of your PPP loan is not forgiven, please use the following calculation to help you identify when your first payment will be due:
- All PPP borrowers now have a covered period of 24 weeks. RCU is making this adjustment automatically.
- No covered period will extend beyond 12/31/2020.
- If your PPP loan was approved by the SBA on or before June 5th, you have the option to choose an 8-week covered period instead. (There does not appear to be any additional benefit to choosing the 8-week option, however if you prefer the 8-week
covered period, please let us know and we will adjust.)
- Your correct loan due date will be reflected in your online banking account.