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SBA Payroll Protection Program (PPP) Forgiveness

The SBA recently amended their PPP forgiveness application to make the process easier to understand and achieve. Below is an outline of the forgiveness program as of July 10, 2020. Please note this process is still evolving and updates will be made as we get the newest information from the SBA.
 
 

Which forgiveness application do I use?

There are two applications available – Form 3508EZ and a long form.  You may use the EZ form if you meet one of the following criteria:

  1. You applied as a self-employed borrower, contractor, or sole proprietor
  2. You didn’t reduce wages for any individual by more than 25% during your PPP period compared to 1/1/2020 to 3/31/2020. And, you didn’t decrease the number of employees from 1/1/2020 to the end of your PPP period. This should be easy if you are a seasonal business.
  3. The same as #2 above, but the business was unable to operate at the same level prior to 2/15/2020 due to requirements issued by the CDC, OSHA, or DHHS. 

Please refer to page 1 of the 3508EZ instructions for more information.

 

Where do I get the forms?

Here are the links to the forms:

PPP Forgiveness Application 3508EZ

PPP Loan Forgiveness Application

PPP Loan Forgiveness Application Form EZ Instructions

You may also contact your Lender or visit www.sba.gov.

 

When can I submit to the Bank?

We can hold onto your application for you. We are still awaiting guidance from the SBA on how to submit the applications and receive funding to pay off your PPP.

 

I don’t know my SBA PPP loan number, my Lender PPP loan number, and/or my EIDL application number.

We can provide you with the SBA and Lender PPP numbers or complete this for you. The Lender number would be located on your copy of the loan documents signed. If you received an EIDL, however, you would have received an application number via e-mail. The Bank does not have access to this as the program was administered directly through the SBA. You will need to provide the EIDL information.

 

How does the EIDL advance factor in to the forgiveness?

The amount you are requesting forgiveness for will be reduced by the amount of any EIDL advance received (not the loan amount).

 

When can I apply for forgiveness?

You may apply anytime you wish after you have achieved all the criteria for forgiveness, but no later than 6 months after your PPP period has ended. Each Lender has 60 days to make a determination if the application meets the full forgiveness criteria.

 

What do I need to provide to the Bank?

  • The appropriate application, completed and signed
  • Payroll records for your PPP “covered” period that substantiate the figures entered on the application.  A payroll register, or cancelled checks if self-employed, etc. are examples of substantiation documents.
  • Any other records (receipts, statements, check copies, etc.) that substantiate the other non-payroll costs listed on the application and that were incurred during the PPP covered period.

Please refer to page 4 of the attached EZ-application instructions for more information.

 

What if I have more questions?

You may contact your lender at any time at 800-564-3195.