Paycheck Protection Loans made prior to June 5, 2020
Deferral Period Changes
Original PPP loan
On the original PPP Note that you signed it states that there are no payments due for the first 6 months of the loan. This 6 month term is your deferral period.
Your Deferral Period changed automatically with the Flexibility Act that went into effect as of June 5, 2020.
New Deferral Period
The new Deferral Period for you PPP loan now extends until the earlier of:
The date on which the amount of forgiveness for the PPP loan determined under applicable law and PPP rules is remitted by the Small Business Administration (SBA) to the lender;
The date the lender is notified by the SBA that no Loan forgiveness is allowed for your PPP Loan;
If the Borrower has not yet applied for PPP Loan forgiveness, the date 10 months after the last day of the “covered period: for the PPP Loan, as defined in the PPP rules.
The Note for your PPP Loan does state that interest will continue to accrue during your deferral period. No payments are required until the end of your NEW Deferral Period and your monthly payments as well as the First Payment Date will be recalculated at the end of your deferral period. We will provide you with the updated information following your deferral period.