Do the 8 weeks forgiveness period start at date of funding? Or is it any 8 week period within 6 months?

[joey13]

I have a problem (high quality, admittedly), where my PPP is approved and I have the documents to sign, but my next payroll is on the 1st. (We do 1st and 15).

If I receive funding before the 27th of April, 8 weeks will not include my June 15th payroll, and that will be 30k I had used to calculate the loan amount.

Do I wait to close the loan? Or do I pay that payroll early (June 11th or the 12th or something)?
I feel that I need to sign the docs before Round 2 of funding sends the bank scrambling, but I want to make sure I can pay 75% towards payroll in the time allotted.

 

[613jono]

@joey13 Date Of DocuSign

 

[cedd660]

@joey13 8 weeks from date of funds hitting your account.

 

[joey13]

@cedd660 Thanks! Any idea about if I am able to speed up payroll to make sure the last payment is within the 8 weeks?

 

[cedd660]

@joey13 The law doesn’t say anything about that. Other laws say you have to make regularly scheduled payments to employees but I believe if its one off its fine. From my understanding you can also bonus out folks as long as you don’t exceed the 100k~ cap they have on annual compensation. I’ve been thinking about bonusing out my office staff in the last PPP pay period to coincide with pay cuts going forward.

 

[liztaylor972]

@joey13 As long as you aren't prepaying for work not yet done you should be fine.

 

[liztaylor972]

@joey13 The 8 week period begins on the date of first disbursement of funds: https://www.sba.com/funding-a-busin...-loans/ppp/faq/eight-week-forgiveness-period/

 

[joey13]

@liztaylor972 Thank you! Do you know if I am able to speed up my payroll to make sure the last paycheck falls within the 8 week period?

 

[spiritsealed]

@joey13 To answer the question you asked twice about speeding up payroll. Without further guidance on Loan Forgiveness you'll have to look at the CARES Act itself which states that the costs must be both INCURRED and PAID during the 8 weeks. Without further guidance or if further guidance is silent then I think your approach to make sure your last payment is within the 8 weeks is wise.