Paycheck Protection Program Loan Forgiveness

We understand loan forgiveness for your SBA PPP loan is important to your business.

SBA is not yet accepting forgiveness applications, and we are awaiting guidance necessary to submit the information required for your forgiveness application. We will notify you when forgiveness processing is available.

In the meantime, there are some steps you can take to prepare for forgiveness.

SBA recently made changes to the SBA PPP rules that impact the forgiveness process:
  • You now have a 24-week “covered period,” the period in which you must spend the PPP loan proceeds for full loan forgiveness, starting on the date the funds were disbursed. If your PPP loan was funded prior to June 5, 2020, you still have the option to use the original 8-week covered period.
  • You now must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness,down from 75%.
  • You can use up to 40% of funds for eligible non-payroll costs, up from 25%.
You can find up-to-date information on the rules of the program on the SBA website.

The timeframe to apply for loan forgiveness has been extended. You now have more time to gather your documents and prepare your application. Based on the latest guidance from the SBA, you may submit a loan forgiveness application any time on or before the maturity date of your loan. However, if you submit your loan forgiveness application within 10 months of the end of the covered period, you won’t have to make any payments of principal or interest on your loan before the date the SBA makes a final decision on the loan forgiveness amount.

Depending on the form you are using, you can review the instructions and begin gathering documentation to support your forgiveness application:


The PPP loan forgiveness application includes the PPP Loan Forgiveness 3508 Form and Schedule A, with accompanying instructions, which you will need to complete. You’ll also be required to submit documentation, including:

-Payroll documentation verifying eligible payments, consisting of the following:
  • Bank account statements or third-party payroll service provider reports.
  • Tax forms including IRS Payroll tax filings (typically Form 941) and state quarterly business and individual wage reporting and unemployment insurance tax filings.
  • Payment receipts, cancelled checks, or account statements documenting employer benefits contributions.
-FTE documentation showing the number of FTE employees for the FTE reduction reference period selected.
-Nonpayroll documentation verifying the existence of obligations/services prior to February 15, 2020, and eligible payments, consisting of the following:
  • Business mortgage interest payments: account statements or amortization schedules and receipts or cancelled checks.
  • Business rent or lease payments: account statements or current lease and receipts or cancelled checks. 
  • Business utility payments: account statements or invoices and receipts or cancelled checks.


-The documents required with the PPP Loan Forgiveness 3508EZ Form, with accompanying instructions, are the same as listed above except for the following differences:
  • Form 3508EZ does not have a Schedule A.
  • The FTE report is not required.

Once forgiveness processing begins and we receive your application, it will be reviewed for completeness and submitted to the SBA for a decision. You will be notified of the decision, the amount being forgiven, any outstanding balance, and the due date of your first payment, if applicable. 

We are proud to be your trusted lender and are here for questions about your business
and how we can help you grow.



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