The Department of Treasury has updated their guidance regarding the Paycheck Protection Program Loan.
Many were operating under assumption that we could apply for the PPP loan and then take receipt of the funds at a later date we choose. Yesterday, April 8th 2020, the Department of Treasury updated their FAQ’s regarding the loan. Here is a link to the FAQ’s and Question 20 is one we would like to highlight. https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequenty-Asked-Questions.pdf
20. Question: The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?
Answer: The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval.
This is for educational purposes only. The information is based on data gathered from what we believe are reliable sources. It is not guaranteed by Waddell & Reed, Inc. as to the accuracy and is not intended to be used as the basis for any investment decisions. (04/20)