PPP Loan Forgiveness

Your forgiveness application is not due until 10 months after the end of the Covered Period you select (either 8 weeks or 24 weeks from initial loan disbursement).

You can submit your forgiveness application and supporting documentation in our Forgiveness Portal. Email invitations to the portal will be staged by order of date of loan disbursement If you are ready to apply and have not yet received your login credentials, please complete the Request Access form.

Employers

If you applied for your PPP loan with a Form 940, 941, 944, or W-2., You may be eligible for full forgiveness if:

• The entire loan is used for qualifying costs:
• At least 60% is used for payroll
• And the rest is used for business rent, business utilities, or mortgage interest on a business property
• You either do not lay off employees or if you do, rehire them by December 31, 2020.
• For your employees who make less than $100,000 a year, you either do not cut their wages by more than 25% or if you do, you restore their original wages by December 31, 2020.

Note: If you received an EIDL Advance, the amount of that EIDL Advance will be deducted from your total forgiveness amount.

You may be eligible for partial forgiveness if:

• You lay off employees, and do not rehire them by December 31, 2020, the forgiveness amount will be reduced by the percent decrease in employees. For example, if you lay off 20% of your employees, your forgiveness amount may be reduced by 20%
• Your total payroll expenses for employees who make less than $100,000 a year decreases by more than 25% for each employee, the forgiveness amount may be reduced by the same percentage
• You received an EIDL Advance

Non-Employers

If you applied for your PPP loan with a Form 1040 Schedule C.

If you selected the full loan amount in your PPP application, your loan may be fully forgivable if:

• Your owner compensation replacement is limited to eight weeks of your 2019 net profit reported on your Form 1040 Schedule C
• No more than 40% of loan funds are spent on certain business expenses that are deductible on your Form 1040 Schedule C, such as business utilities, business rent, or mortgage interest on a business property. (Rent, utilities, or mortgage interest for your personal residence are not eligible).

Note: If you received an EIDL Advance, the amount of that EIDL Advance will be deducted from your total forgiveness amount

The Covered Period is the time period in which you are spending your PPP funds after you received them from your original PPP lender. If you received your disbursement prior to June 5th, 2020, you have the option to choose between an 8-week Covered Period and a 24-week Covered Period, beginning on the date of the disbursement. If you received your disbursement on or after June 5th, your Covered Period is the 24-weeks following your disbursement. To simplify your forgiveness calculation, if you use a bi-weekly or more frequent payroll cycle, you may choose the first day of the first payroll period following your disbursement as the start of your Covered Period for payroll expenses only (the SBA refers to this as the “Alternative Payroll Covered Period”).

Example: A borrower that received a PPP loan on June 1, 2020 elects to use a 24-week covered period and has a bi-weekly payroll schedule (with payments made every other week). The borrower’s 24-week covered period begins on June 1 and ends on November 15. The first day of the borrower’s first payroll cycle that starts in the Covered Period is June 7. The borrower may elect an Alternative Payroll Covered Period for payroll cost purposes that starts on June 7 and ends 167 days later (for a total of 168 days), on November 15th. Payroll costs paid during this Alternative Payroll Covered Period are eligible for forgiveness.

Please note, only forgiveness of payroll costs may be calculated using the Alternative Payroll Covered Period. All other qualifying expenses will be calculated using the original Covered Period beginning on the date of loan disbursement.

PPP loan providers have up to 60 days from receipt of a complete loan forgiveness application (including required supporting documentation) to issue a forgiveness recommendation to the SBA. Once a recommendation has been issued to the SBA, the SBA has up to 90 days to review it and inform the PPP loan provider if it is in agreement with the loan provider’s recommendation. We will keep you informed on the progress of your forgiveness application and will inform you of the outcome, once permitted to do so by the SBA.