Is there a prepayment penalty for the PPP? Jack McNeilly June 10, 2020 18:39 Updated There is no prepayment penalty associated with the the PPP loan. Find out more about what a prepayment penalty is here. Related articles What is the term length of the PPP? Are there any fees associated with the PPP loan? How can my PPP loan be forgiven and by how much? What is the interest rate on a PPP loan? What is the maximum amount I can qualify for? Comments 0 comments Article is closed for comments.