PPP Forgiveness Process

The SBA Forgiveness portal opens to lending banks on Monday, August 10th. You may submit your completed SBA Forgiveness Application and supporting documentation in the method that is most convenient for you. Note: Congress is debating several bills related to PPP . We will continue to update information as it is released. 

To submit your application for forgiveness:

1. Determine the appropriate application to use for forgiveness - Form 3508, Form 3508EZ, or Form 3508S. The S form applies to borrowers who have PPP loans totaling $50,000 or less. The EZ form applies to borrowers who meet any one of these three criteria:

• Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
• Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
• Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.

2. Complete the application and submit all supporting documentation to Pacific West Bank. Refer to the corresponding forgiveness application instructions found below for a listing of required documentation to submit with the forgiveness application. You can submit via:

A. DocuSign - access the 3508EZ Application or 3508 Application
B. PDF and upload to this secure link .
C. Fax to: 503-912-2091
D. Deliver to either of our branches: West Linn (2040 8th Ave) or Lake Oswego (5200 Meadows Road) 

We will notify you after your application has been reviewed and submitted to the SBA for forgiveness. This process may take up to 60 days. The SBA has stated that their decisions on approval may take up to 90 days after submission. Please reach out to your banker directly with any questions or you can email ppp@bankpacificwest.com

Forms and Program Rules from the Treasury and SBA:
PPP Loan Forgiveness FAQs.
 (Revised 10/13/2020)
Download Form 3508S. 
Download the instructions for Form 3508S. 
Download Form 3508EZ. 
Download the instructions for Form 3508EZ.
Download the revised Form 3508. (Revised 6/16/2020)
Download the instructions for Form 3508. (Revised 6/16/2020)
Read the interim final rule. (Revised 6/17/2020)

Updated October 9, 2020 - The SBA released a streamlined loan forgiveness application for PPP loans totaling $50,000 or less. The two-page forgiveness application, Form 3508S, includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain the documentation supporting their certifications for six years, but do not need to submit it.

August 12, 2020 - The SBA released several elements of guidance for PPP lenders and borrowers. The agency added three new frequently asked questions to its FAQs on PPP loan forgiveness. The new questions address how lenders should handle forgiveness applications for PPP borrowers who also received Economic Injury Disaster Loan (EIDL) advances. SBA also issued two new questions on its main PPP FAQ document. The new FAQs clarify that vision and dental benefits do not count toward the cash compensation cap of $100,000 for PPP payroll costs. PPP Loan Forgiveness FAQs (Revised 8/11/2020) Main PPP FAQs (Revised 8/11/2020)

August 4, 2020 - The SBA, in consultation with the Department of the Treasury, is providing guidance to address borrower and lender questions concerning forgiveness of PPP loans. Borrowers and lenders may rely on the guidance linked below as SBA’s interpretation, in consultation with the Department of the Treasury, of the CARES Act, the Flexibility Act, and the PPP Interim Final Rules. Read the PPP Loan Forgiveness FAQs 8-4-20 here. 

July 24, 2020  - The Small Business Administration yesterday issued a procedural notice stating that lenders may begin submitting loan forgiveness applications on August 10th, subject to extension, if any new legislative amendments to the forgiveness process necessitate changes to the system. We will be refining our process over the next couple of weeks and will reach out on next steps soon. We are also awaiting a decision by congress/SBA/Treasury as to a possible ‘blanket PPP loan forgiveness’ amount. The concept is on the table to forgive all PPP loans below a certain threshold.

Forgiveness Deadline - There is not a specific due date for submitting the PPP Forgiveness application. However, payments are due on any unforgiven portion 10 months from the end of the ‘covered period.’ This is a change from the initial 6 month deferral from the date of loan disbursement. There is plenty of time to complete the forgiveness process.

June 17, 2020 -  The SBA released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:

• Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
• Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
• Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.

The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.

June 05, 2020With the passage of the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act), the Treasury and SBA are working on updating the loan forgiveness application to incorporate the safe harbor changes found in H.R. 7010, the Flexibility Act. These changes should make it significantly easier for borrowers to apply for forgiveness and reduce the overall size of the application. The Small Business Administration and Treasury Department released an interim final rule on June 11, 2020 to reflect changes made by the Flexibility Act. The interim final rule codifies several changes to the program. Specifically, it:

May 15, 2020In order to assist borrowers in completing the Loan Forgiveness Application, we sent letters with specific information to the address provided on the PPP Loan Application.  In addition, e-mails were sent notifying borrower's of this incoming mail.

NOTE: The information provided is based on the US Small Business Administration current guidelines and Loan Forgiveness Application for the Paycheck Protection Program (“PPP”). The SBA and/or Treasury may issue additional guidance regarding forgiveness of PPP Loans. The information on this page and in other communications with our PPP clients represents our understanding of the current requirements and regulations. The Application and Guidance are subject to supplemental information provided by the SBA. You are responsible for determining eligibility for the PPP loan and forgiveness, filling out the Loan Forgiveness Application and providing true and correct information.

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