Paycheck Protection Program Loan Forgiveness
Summary
Paycheck Protection Program Loan Forgiveness fact sheet for borrowers. It says borrowers may be eligible for forgiveness if funds were used for eligible payroll costs, business mortgage interest, rent or utilities during either the 8- or 24-week period after disbursement, and may apply any time up to the loan's maturity date, with payments no longer deferred if they apply within 10 months after the last day of the covered period. It lists steps to contact the PPP lender and complete the correct SBA form, compile payroll and non-payroll documentation, submit the application and keep in touch with the lender. It notes that SBA may undertake a loan review and that borrowers may appeal certain review decisions. No date is printed in the text.
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“Paycheck Protection Program Loan Forgiveness.”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-loan-forgiveness-factsheet-10-30-2020-home-f84cded3ee/
, SHA-256 c5adfae346f562c22361f2c1150b2d224f9b8a2d6e24653c073b09187bae4821.Full text
Paycheck Protection Program
Loan Forgiveness Contact Your
1 PPP Lender 2
For Borrowers
Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness if the funds were used
1 2 3
for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either
the 8- or 24-week period after disbursement. A borrowerContact Your
can apply for forgiveness once Compile
it has used all Sub
loan proceeds for which the borrower is requesting forgiveness. Borrowers can apply for forgiveness
PPPdo not
Lender Documents Len
1 2
any time up to the maturity date of the loan. If borrowers apply for forgiveness within 10
months after the last day of the covered period, then PPP loan payments are no longer deferred and
borrowers will begin making loan payments to their PPP lender.
Contact Your
PPP Lender
How to Apply for Loan Forgiveness
1. Contact your PPP Lender and complete the correct form
Your Lender can provide you with either the SBA Form 3508, SBA Form 3508EZ, SBA Form
1 2
3508S, or a Lender equivalent.
Contact
The 3508EZ and the 3508S are shortened versions of the Your
application for Compile
borrowers who meet specific
PPP Lender
requirements. Your Lender can provide further guidance on how to submit the application.
Documents
2. Compile your documentation
Payroll (provide documentation for all payroll periods that overlapped with the Covered
Period or the Alternative Payroll Covered Period):
• Bank account statements or 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) for the periods that overlap with the
Covered Period or the Alternative Payroll Covered Period: Determine
• Payroll tax filings reported, or that will be reported, to the IRS (typically, FormEligibility
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.
Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations
or services existed prior to February 15, 2020): Determine
Eligibility
• 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.
ontact Your
PP Lender 2 Compile
Documents 3 Submit to
Lenders 4 Keep in Touch
with Your Lender
1 Contact
This list of documents
www.sba.gov/pppPPP
requiredYour
2 Compile
to be submitted to the Lender
3 Submit to
is not all-inclusive. Please refer to
Lenderlist of requirements, instructions
for a complete Documents
3. Submit the forgiveness form and documentation to your
and forms. Lenders 4
PPP Lender
Complete your loan forgiveness application and submit it to your Lender with the re-
2 3 4
quired supporting documents and follow up with your Lender to submit additional documentation
ntact Your as requested. Consult
Compile Submit
your Lender for additional guidance to requested documentation
and provide Keep inin Touch
a
P Lender timely manner. Documents Lenders with Your Lender
4. Continue to communicate with your Lender throughout the
process
If SBA undertakes a loan review of your loan, your Lender will notify you of the review and
the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Your Lender
is responsible for notifying you of the forgiveness amount paid by SBA and the date on which your first
payment will be due, if applicable.
PleaseDetermine
Note:
If applicable, SBA will deduct any EIDL advance amount you have received from the forgiveness amount
Eligibility
remitted to the Lender, as required by section 1110(e)(6) of the CARES Act. Borrowers are required to retain
certain documents for six years after the date the loan is forgiven or repaid in full.
Questions? Contact your PPP Lender or find more information at www.sba.gov/ppp
SBA Review
ne and
y
DAYS
All SBA programs and services are extended to the public on a non-discriminatory basis. (10/2020)
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