COVID-19: Paycheck Protection Program Forgiveness
Forgiveness of Existing PPP Loans
For our business clients who received PPP loan funding less than or equal to $150,000, you may now apply for forgiveness directly with the SBA through the SBA’s forgiveness portal. This portal is made available by the SBA to streamline forgiveness processing for PPP Borrowers.
For PPP loans greater than $150,000, a banker will contact you to assist with your forgiveness application.
If you are already working with a Commercial or Private Wealth Banker, contact your banker directly to process your PPP forgiveness application.
You will be asked to set up an account with the SBA before starting your online forgiveness application. Click the link below to access the SBA online portal to set up an account with the SBA and apply for forgiveness.
Here is helpful information as you prepare to submit your forgiveness application.
The “Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act” simplified the forgiveness process for loans less than or equal to $150,000 and added more eligible expenses, including certain property damage costs, supplier costs, and worker protection expenditures.
- Review this checklist to ensure you have all of the necessary documents
- Review the naming conventions
- Review these helpful tips before you begin your application
- If you have a first or second draw PPP loan of less than or equal to $150,000, you can use Form 3508S. If using Form 3508S to apply for forgiveness for a first draw PPP loan originated in 2020 or 2021 and you can make all the attestations included, you do not need to provide any supporting documentation. If you use Form 3508S to apply for forgiveness for a second draw PPP loan originated in 2021, you will need to provide proof of the 25% revenue reduction when comparing 2019 to 2020, unless you already provided this information at the time of loan application.
- If you do not qualify for Form 3508S (that is, your PPP loan is greater than $150,000) but you do qualify to use Form 3508EZ (that is, you can check either of the boxes listed in the SBA’s “Checklist for Using SBA Form 3508EZ”) we suggest you apply for forgiveness using Form 3508EZ as it is less cumbersome than Form 3508.
- Watch our helpful series of video modules compiled to guide you through the loan forgiveness process, to include the following topics:
- Qualifying for Form 3508 EZ
- Selecting a “covered period”
- Calculating payroll and non-payroll expenses
- Exceptions and safe harbors for employee and wage reductions
- Navigating the forgiveness forms
- Qualifying for Form 3508S
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For additional information regarding the forgiveness of PPP loans visit: www.sba.gov
The foregoing is only a general summary, is not intended to be legal, tax, or business advice, and may be changed prior to enactment into law or by subsequent SBA regulation. Please consult your advisors to determine all matters of PPP eligibility and requirements.