Help for your forgiveness application
When you start the forgiveness process, you will use our secure online portal to manage your application. Following are two user guides that will help you through the process.
User guide for forms 3508 and 3508EZ
Use this guide if you are using form 3508 or 3508EZ for your loan forgiveness application.
User guide for 3508S application
Use this guide if you are using form 3508S for your loan forgiveness application.
Download these instructions from the SBA for loan forgiveness form 3508S.
Getting prepared
To start preparing for loan forgiveness, you can visit the SBA website to download the most recent applications. When it is time to submit your information, we will send you an invitation to fill out an online application and upload your documentation through our secure portal. We will NOT accept paper applications, so please do not fill out and submit the application.
For additional support, please download our worksheet that will provide guidance on the documentation required to apply for loan forgiveness.
Forgiveness period
The forgiveness period has been extended to include costs incurred over 24 weeks after the loan was issued or through December 31, 2020, whichever comes first. If your business received a PPP loan before this measure was enacted, you can elect to spend the funds over the original eight-week period or extend it through the new 24-week period.
This FA also extends to December 31, 2020 the period in which your loan can be forgiven if you restore staffing or salary levels that were previously reduced. This provision applies to worker and wage reductions made from February 15 through 30 days after the enactment of the CARES Act, which was signed into law on March 27th.
Loan maturity
All PPP loans granted after the FA (June 4, 2020) will carry a five-year minimum maturity loan. If your loan was issued before the FA, your loan carries a two-year maturity term.
Deferral period
The deferral of payments of principle and interest is now extended to 10 months for all loans issued after the FA (June 4, 2020). If you do not apply for forgiveness of your loan, you must begin payments of interest and principle within 10 months of the end of the newly established 24-week covered period. If you obtained a PPP loan prior to June 4th, your deferral period is 6 months.
Use
Prior to the enactment, you were required to use 75% or more of the loan on payroll expense to qualify for forgiveness. The recent enactment reduces that amount and now requires that you spend at least 60% of the loan on payroll expenses to be eligible for forgiveness. This change allows you to use 40% of the loan for non-payroll expenses such as rent, mortgage, and utilities.
In addition, the FA repeals a provision of the CARES Act that barred forgiven PPP loans from deferring your payroll tax payments.
Security
The coronavirus accelerated the activities of cyber criminals during the PPP loan process. Similarly, cyber criminals are working to take advantage of borrowers to help “fast track” the loan forgiveness process. If you have any questions or concerns, please contact your lender.
The instructions in this site are provided for your convenience. Please refer to the SBA website for the latest information. If you need additional assistance, please consult with your accountant or tax advisor for help with the PPP loan forgiveness process.
