The Paycheck Protection Program Flexibility Act made some significant changes to PPP loans.
One of the biggest changes was to the eight-week forgiveness period. If you were assigned a PPP loan number on or before June 5, 2020, you now have the option of taking 24 weeks to spend the funds instead of eight weeks.
Borrowers whose loan numbers were assigned after June 5 will automatically have a forgiveness period that is the shorter of:
24 weeks, or
From the date of the loan to December 31, 2020.
Naturally, one of the questions that keep coming up from small business owners who took out a PPP loan is, “should I use eight weeks or 24 weeks for calculating loan forgiveness?”