Paycheck Protection Program (PPP)

PPP Round 1 loan forgiveness

If you have not applied yet for forgiveness of the first round of PPP loans, please click here to enter the loan forgiveness portal

Helpful tips regarding forgiveness of existing PPP loans

The SBA requires borrowers to submit their forgiveness applications within 10 months after using the funds. Please be assured we are committed to processing all applications well within that time period.

The forgiveness application underwent several modifications during its roll-out, such as:

  • The time period to use loan proceeds can be extended from 8 weeks to 24 weeks
  • The threshold for payroll portion to be used to qualify for 100% forgiveness has been lowered from 75% to 60%
  • Borrowers now have through the end of the year to restore employees and wages

The following components are key factors in determining forgiveness:

  • Documenting the use of loan proceeds was for eligible expenses 
  • Determining how much of the eligible costs were for payroll
  • Determining a reference period
    • Borrowers will compare loan proceeds used for payroll to a reference period and may choose from:
      • 2/15/19 through 6/30/19
      • 1/1/20 through 2/29/2020
      • 2/15/19 through 6/30/2019 (an option for seasonal businesses)
  • Comparing the full-time equivalents (FTEs) and wages during the loan period to the reference period
    • The amount forgiven may be reduced by reduction in FTEs and wage reductions in excess of 25%. However, this will not apply to employers who are able to restore FTEs and wages by 12/31/20

Be sure to document all uses of loan proceeds and gather the following documentation: 

  • Payroll costs
    • Bank accounts or third-party payroll service reports documenting the 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. For tax forms, the SBA is requesting payroll tax forms (usually 941) and state quarterly wage and unemployment filings
    • Payment receipts, cancelled checks or account statements documenting the amount of employer contributions to employee health insurance and retirement plans
  • Documentation of rent, mortgage interest and utilities
  • Evidence of existing obligations/services prior to Feb. 15, 2020
  • Evidence of payments during the eight-week period
    • Mortgage obligation:
      • Lender amortization schedule
      • Receipt of payments as well as statements from February 2020 and during the eight-week covered period
    • Rent or lease payments
      • Copy of the lease agreement must be produced showing it was in-force before Feb. 15, 2020
      • Copies of account statements from the landlord/lessor showing the payments or cancelled checks evidencing the payments made during the eight-week period

Your business is our top priority

You and your business’ financial well-being will always be our top priority. We will continue to share information as it becomes available. If you have any questions, please email us.

Other SBA Resources

The Economic Injury Disaster Loan program is also available through the SBA.  This is a direct loan from the SBA to the borrower.  Applicants must apply directly to the SBA, as financial institutions are not intermediaries in this loan program. Please refer to the SBA's EIDL web page for more information.