Instructions for filing for loan forgiveness

When to file for forgiveness

After using all of the PPP loan funds they receive, a borrower can apply for forgiveness at any time after the end of the covered period, up until the maturity date of the loan (5 Years from the date of disbursement).

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However, if borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers must begin making loan payments. Therefore, we recommend you file for forgiveness after you have spent all the funds, but before 10 months after the last day of your covered period.

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How to file for forgiveness

Please note, these instructions are for borrowers whose PPP loan is under $150,000.

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1. Compile your documentation

Payroll 
Include 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:

  • Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941)

  • 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

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Non-payroll 

Include any expenses that were incurred or paid during the covered period and/or obligations or services that existed prior to February 15, 2020:

• 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

• Covered property damage costs:  Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments, and verification that costs were related to uninsured property damage due to public disturbance vandalism or looting that occurred in 2020

• Covered supplier costs:  Copy of contracts, orders or purchase orders in effect at any time before the Covered Period (except for perishable goods), and copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments

• Covered worker protection expenditures:  Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments, and verification that expenditures were used to comply with COVID-19 guidance

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Note: This list of documents required to be submitted is not all-inclusive. You will need to assure you have documented any expense that is covered by your PPP loan.

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2. Submit your documentation

Forgiveness applications will be ​completed through the SBA PPP Direct Forgiveness Portal.

 

View the Direct Forgiveness Portal User Guide to see step-by step instructions on registering in the portal and submitting your application.

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3. Continue to monitor your application for forgiveness:

The SBA or ECDI will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. ECDI 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.

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Additional information that may be helpful:

SBA's Direct Forgiveness Knowledgebase

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