The covered period is the maximum amount of time you have to use the PPP funds. You do not have to take the full 8* or 24-week covered period. However, when applying for PPP loan forgiveness your covered period entry must still reflect the full 8 or 24-week period, even if all the funds were used in a period less than 8 or 24 weeks. In other words, the covered period does not end on the date that your PPP funds were exhausted.
In addition. Please remember that December 31, 2020 is the final cutoff date for eligible expenses. For loans being disbursed July 16 and later, this means that you will not be able to take full advantage of the 24 weeks and you will need to note a covered period that ends 12/31/20. See example below:
(For loans disbursed prior to 6/5/2020)
(For loans disbursed 7/16/2020 or later)
|PPP Disbursement Date
||4/30 - 6/25
||4/30 - 10/15
*Note: Only borrowers who received their PPP loan prior to June 5, 2020 can use an 8-week covered period