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Start Planning to Have Your Loan Forgiven
If your small business has received a Paycheck Protection Program (PPP) loan, there are specific requirements you’ll need to meet in order to have your loan forgiven. We will be continuously updating this page with the information from the SBA, and provide helpful resources for beginning your loan forgiveness process. Please check back frequently to stay informed.
Latest Update: October 21, 2020
Webinars on PPP Forgiveness Application for Borrowers
Join SBA to learn about PPP Forgiveness for loans of $50,000 and less, Form 3508S (announced on Oct. 8th), Changes of Ownership (announced on oct. 2nd), New Information (announced on August 11th and 27th, PPP Flexibility Act Seven changes of PPP (announced on June 5th), , the Most Common FAQs , the Revised PPP Forgiveness Application SBA Form 3508 with Instructions, and SBA Form 3508EZ with Instructions.
Speaker: Ms. Man-Li Lin, Economic Development Specialist, Economic Development Specialist, New York District Office, U.S. Small Business Administration
Mon. Oct. 26th at 2pm “PPP Forgiveness Application 3 Forms and Instructions” - Register Here
Thurs. Oct. 29th at 10am “PPP Forgiveness Application 3 Forms and Instructions” - Register Here
How Do I Have My PPP Loan Forgiven?
U.S Small Business Association- Simpler PPP Loan Forgiveness for Loans $50,000 or Less
U.S Chamber PPP Loan Forgiveness: Step by Step Examiner
U.S. Chamber Guide to PPP Loan Forgiveness
Are You Prepared?
If you are one of the many small businesses who accepted an SBA Paycheck Protection Program loan, and are considering loan forgiveness, the next step is preparation. Loan forgiveness is not automatic. You’ll need to apply and adhere to many requirements.
PPP Loans Forgviness $50,000 or Less
PPP Loan Forgiveness 3508s Instructions- For Loans Under $50,000
PPP Loan Forgiveness 3508s Applications- For Loans Under $50,000
PPP Loan Forgivness $50,000 or More
Click here to review our PPP Loan Forgiveness Application Completion Guide.
In accordance with the SBA’s Final Interim Rules on Forgiveness, the SBA has mandated that the following documents must be submitted by each Borrower with its PPP Loan Forgiveness Application:
a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees. Reports from a third-party payroll provider are strongly encouraged.
b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to:
a. the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019;
b. the average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020 and February 29, 2020; or
c. in the case of a seasonal employer, the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive twelve-week period between May 1, 2019 and September 15, 2019.
The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include 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. Documents submitted may cover periods longer than the specific time period.
a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments. (applied to Line 2 of SBA Form 3508 or Form 3508EZ)
b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. (applied to Line 3 of SBA Form 3508 or Form 3508EZ)
c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments. (applied to Line 4 of SBA Form 3508 or Form 3508EZ)
The following is not required to be submitted, but must be available from Borrower:
What Qualifies for Forgiveness?
Remember, the intended purpose of PPP loans was for small business to keep employees on payroll. Loans may be forgiven if eligible small businesses use the loan proceeds for full-time or part-time wages during the covered period (either 8 or 24 weeks).
Please see the PPP-IFR--Additional Revisions to Loan Forgiveness and Loan Review Procedures for additional guidelines and requirements.
Additional Resources for PPP Loan Forgiveness
PPP Loan Forgiveness Frequently Asked Questions
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