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Happy 4th of July!  With all of the “guidance” flying around about the PPP, PPP Flex, etc.  There is a lingering question about the maturity dates for “unforgiven” portions of PPP loans.


Idaho Theological Seminary (ITS) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(i).  They are not required to file Form 990 annually.

ITS’ Accounting Team was meeting with us on a video call to plan for their June 30, 2020 audit.  They received their PPP funds on April 20, 2020.  We’ve booked the PPP Loan as a Note Payable at fiscal year-end.  They have an interesting question:

“We are going to use the 56-day (8-week) “plan” for filing for PPP forgiveness,” they say.  “It looks like we will have about 92% of our PPP loan forgiven.  Now, with the “PPP Flexibility Act” in place, will we have to pay back the “unforgiven” 8% over 2 years or 5 years?”

“Great question,” we tell them.  “Because you received your SBA loan number prior to June 5, 2020, your loan has a 2-year maturity.  However, the PPP Flexibility Act allows you to work with your lender to “mutually agree” on a 5-year maturity if desired.  The promissory note for the “unforgiven” 8% will state the term, interest rate, and other details of your loan – review it carefully!


From PAYCHECK PROTECTION PROGRAM LOANS Frequently Asked Questions (FAQs) (As of June 25 2020):

  1. Question: What is the maturity date of a PPP loan?

Answer: If a PPP loan received an SBA loan number on or after June 5, 2020, the loan has a five-year maturity. If a PPP loan received an SBA loan number before June 5, 2020, the loan has a two-year maturity, unless the borrower and lender mutually agree to extend the term of the loan to five years. The promissory note for the PPP loan will state the term of the loan. (Published June 25, 2020)


  • PPP loans have been an oft-utilized opportunity for funding over the past few months.
  • The guidance/rules continue to “shift” – especially with the passing into law of the “PPP Flexibility Act” (dated June 4, 2020).
  • Paycheck Protection Program Loans – Frequently Asked Questions (from the SBA) can be found at:
  • It is time to carefully consider the 8-week vs. 24-week “plans” and to carefully review ALL of the most current PPP guidance – COMMUNICATE WITH YOUR LENDER!

Specific questions? Email Dave Moja

The information provided herein presents general information and should not be relied on as accounting, tax, or legal advice when analyzing and resolving a specific tax issue. If you have specific questions regarding a particular fact situation, please consult with competent accounting, tax, and/or legal counsel about the facts and laws that apply.

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