We are continuously updating this information, however, in the event of inconsistencies with the SBA, please follow official SBA guidance. Congress, the U.S. Treasury, and the SBA have been continually modifying the PPP guidelines since the program started. PPP borrowers are encouraged to visit the U.S. Treasury and SBA websites for the most current information on the PPP guidelines and to watch for applicable updates.
Loan forgiveness is a hot topic right now, we know.
We assure you, you have time.
We have started the forgiveness process with some of our customers. If you have not received an email from us regarding forgiveness, you will soon.
You have 24 weeks to use your PPP funds from the date you received them—please note that while the SBA has begun accepting applications after 8 weeks, we have decided to wait for at least 24 weeks in order to provide you with the smoothest experience, therefore if it has been less than 24 weeks since you received the funds, we cannot begin the forgiveness process yet.
If the SBA forgives any part of your loan, it will forgive the associated accrued interest, as well.
Is forgiveness automatic?
No. While there is a simpler forgiveness application for loans under $50K, all PPP loans require a forgiveness application to be eligible for forgiveness (in whole or in part).
Is applying for forgiveness easy?
We want it to be, and that’s exactly what we’re here for. If you haven’t received an email introducing you to our partner, you will receive one shortly. Hang tight, no need to fill out any forms yet because much of the information will be pre-populated to make the process as simple as possible for you.
Can I start preparing anything in the meantime?
Absolutely. As you wait to be connected with our forgiveness partner, now is a great time to get your records ready and in order. Digital records of your supporting documents (as described below), a photo of your driver’s license, and your SBA number which can be located at the top of your promissory note, are a few things to get together so you don’t need to search for them later.
What are the eligible expenses for forgiveness?
- Payroll costs, which includes salary or wages, family and sick leave, allowance for dismissal or separation, healthcare benefits, retirement benefits, payment of state and local taxes assessed on the compensation of an employee
- Payments on a mortgage obligation, rent or lease payments, utilities, interest on any other debt obligations that were procured prior to February 15, 2020.
What documents do I need for my forgiveness application?
Below are the supporting documents that we can accept for your forgiveness application:
For forgiveness of funds used for payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):
- Third-party payroll service provider reports documenting the amount of cash compensation paid to employees
- Tax forms (or equivalent third-party payroll service provider reports from certified CPAs) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
- Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount
For forgiveness of funds used for non-payroll expenses (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):
- Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements
- Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
- Business utility payments: Copies of invoices and receipts, cancelled checks or account statements
This list of documents is not all-inclusive. Our forgiveness partner will assist you further. We also encourage you to consult with your accountant or financial advisor.
I already filled out my forgiveness form. Can I send it to you now?
At this time, you are not required to fill out any forms. We are working with a partner who will take you through the forgiveness application electronically, and much of the information will be pre-populated to make the process as smooth as possible for you.
When is my first payment due, if all or some of my loan is not eligible for forgiveness?
If you do not apply for forgiveness at all, your repayment plan will begin no earlier than 10 months after your covered period. We will send you an email with the exact date and terms, at least 30 days before your first payment is due.
If you apply for forgiveness, you may submit your application at any time until the loan is scheduled to mature, however if you apply after your 10 month deferral period, your repayment plan will begin when the deferral period ends.
If you apply for forgiveness during your deferral period, you will not need to make a payment until we have informed you of the SBA’s decision.
If your whole loan is forgiven, you do not need to make any payments.
If your loan is forgiven in part or if it is not forgiven at all, you will need to start making monthly payments — we will send you an email with the exact date and terms, at least 30 days before your first payment is due.
How much of my loan will be forgiven?
PPP borrowers may apply for forgiveness up to 100% of the funded loan amount, depending on whether the borrower used the funds for authorized purposes (according to SBA rules).
I would like to apply for forgiveness now to avoid any additional accrued interest.
We understand, but we remind you, you still have time. If the SBA is able to forgive all or part of your loan, the associated accrued interest will be forgiven as well.
Why can’t I submit my forgiveness application to you now?
We can submit a forgiveness request to the SBA only one time, so we want to get it right. The more information we have, the better experience we will be able to give you. If you haven’t received an email introducing you to our forgiveness partner, you will be receiving one soon.
There is an expiration date on my forgiveness form. Am I running out of time ?
Please rest assured that this is to ensure that old forms are not being used, and is not the expiration of your eligibility for forgiveness. Every month a new application will be released with a new expiry date, but don’t worry about filling out an application. When we connect you with our forgiveness partner, much of the information will be pre-populated to make the process as quick as possible for you.
What is the deadline to apply for forgiveness?
You can apply at any time until your loan is scheduled to mature, however if you do not apply within 10 months of the end of your covered period, you will be required to begin making payments on the loan.
How long will it take to receive a decision from the SBA?
Once you have submitted your completed forgiveness application with our partner, we have 60 days to send your application to the SBA. The SBA then has 90 days to provide us with a decision.
If you qualify for full forgiveness, you’re all set, do not need to make any loan repayments, and we will notify you as soon as we receive notice of the decision.
If you do not qualify for full forgiveness, we will notify you of the decision and loan repayments will start the month after the SBA made their decision.