Small businesses that took U.S. Small Business Administration Paycheck Protection Program loans need to apply for forgiveness soon — otherwise the loans will become permanent and businesses will be responsible for payments and interest.

The PPP loans will automatically convert to a standard loan at 1% interest if a small business does not apply to the SBA for forgiveness within 10 months of the end of the covered period under which they had to spend the money. For some businesses early in the program when it launched in April 2020, there was an eight-week covered period, which would put that deadline in the middle of July. For most loans operating under the more popular 24-week covered period, that could mean a deadline in September.

Either way, experts say small businesses need to apply soon to avoid unnecessary costs.

Read the full story on cleveland.com’s sister site, Cleveland Business Journal.

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