PPP Forgiveness Process
Borrowers will need to download, carefully review, and complete the appropriate Paycheck Protection Program Loan Forgiveness Application. This application and all supporting documentation should then be securely uploaded to this link . See below for updates from the SBA and links to download the applications.
Forms and Program Rules from the Treasury and SBA:
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 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, 2020 - With 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:
- Extends the loan forgiveness period from eight weeks to 24 weeks. (For loans made prior to June 5, 2020, borrowers may opt to keep the forgiveness period at eight weeks.)
- The payroll expenditure requirement drops to 60% from 75%. Previously, a borrower is required to reduce the amount eligible for forgiveness if less than 75% of eligible funds are used for payroll costs.
- Confirms that borrowers that use less than 60% of their PPP loan amount for payroll costs during the forgiveness covered period will still be eligible for partial loan forgiveness.
- Extends the end date of the “covered period” for a PPP loan from June 30, 2020 to Dec. 31, 2020.
- Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years at the mutual agreement of the borrower and lender.
- Clarifies that if a borrower submits its forgiveness application within 10 months of the end of the loan forgiveness period, the borrower will not have to make any payments on the loan before the date SBA remits the forgiven amount to the lender.
- Reiterates that the last day a lender can obtain an SBA loan number for a PPP loan is June 30, 2020.
May 15, 2020 - In 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 designed to provide you with information and requirements 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.