Paycheck Protection Program

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). If you wish to begin preparing your application, you can download a copy of the standard PPP Loan Forgiveness Application Form (as of January 19, 2021) or download a copy of the PPP Loan Forgiveness Application Form EZ (as of May 24, 2021).

You can apply for forgiveness of your Paycheck Protection Program (PPP) loan using the PPP Loan Forgiveness Application Form 3508S (as of May 24, 2021) if the total PPP loan amount you received from your Lender was $150,000 or less. However, a borrower that, together with its affiliates received PPP loans totaling $2 million or more cannot use this form.

• 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); 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.

• Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.
• Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.
• Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.

Loan Forgiveness Process

Step 1: 

Complete the appropriate forgiveness application and turn it in with the requested documentation, if applicable.

• Forgiveness applications for loans $150,000 or less should use Form 3508S.
• Forgiveness application for loans over $150,000 with no reduction in staff (other than permissible by the safe harbor clauses) or reduction pay (pay cuts for any employee did not exceed 25%), should use Form EZ.
• Forgiveness application for loans over $150,000 with reduction or pay cuts greater than 25% should applying using the Standard PPP Loan Forgiveness Application.

Additional Resources:

• SBA 504 loan
• SBA 7(a) loan
• Economic Injury Disaster loan (EIDL)
• SBA debit relief
• California State Guaranteed loans
• SBA grants

For the latest information on the PPP, please visit sba.gov/ppp.