8 Week Covered Period

When does the 8 week period used to calculate the forgiveness metrics begin?

There are two options depending on your company paycycle.

Option 1: The first day of the Covered Period would be the same day you received funding on your PPP Loan.

Option 2: Borrowers with a biweekly or more frequent pay period can start the eight week (56 day) Covered Period on the first day of the first pay period following your PPP Loan funding.

There are two methods to determine when your 8 week Covered Period began depending on your company’s pay cycle.

• Method 1 (default): The Covered Period would be the 8 week (56 day) period immediately following the actual funding of your PPP loan.

  The date you received your PPP Loan proceeds in your bank account is known as your PPP Loan Disbursement Date. If you got your funds on April 20th, That is the first day of your Covered Period. For example, if you got your funds May 11th, May 11th would be the first day of your 8 week (56 day period) Covered Period and this Covered Period would end on July 6, 2020.

• Method 2 (alternate): There is also an Alternative Payroll Covered Period. This option is for borrowers that have a biweekly, weekly or other more frequent paycycle for their payroll. If this is you, you have the option to elect to use the first day of the first pay period following your PPP Loan Distribution Date as the start of your 8 week Covered Period. For example, if you got funds on April 20th and the first day of your next pay period is April 30th you can elect to use April 30 as the start of your 8 week Covered Period and your Covered Period would end on June 25, 2020.

Page 1 of Form 3508
Covered Period: Enter the eight-week (56-day) Covered Period of your PPP loan. The first day of the Covered Period must be the same as the PPP Loan Disbursement Date. For example, if the Borrower received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14.

Alternative Payroll Covered Period: For administrative convenience, Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the eight-week (56-day) period that begins on the first day of their first pay period following their PPP Loan Disbursement Date (the “Alternative Payroll Covered Period”).For example, if the Borrower received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, June 20. Borrowers who elect to use the Alternative Payroll Covered Period must apply theAlternative Payroll Covered Period wherever there is a reference in this application to “the Covered Period or the Alternative Payroll Covered Period.” However, Borrowers must apply the Covered Period (not the Alternative Payroll Covered Period) wherever there is a reference in this application to “the Covered Period” only.