Important Information for PPP Borrowers
Dates and Deadlines Related to
PPP Round 2
Loan Forgiveness & Repayment
We want to make sure that our PPP borrowers are aware of some important dates and deadlines related to PPP loan forgiveness and repayment so that you can plan for either moving forward with requesting PPP loan forgiveness, or alternatively, establishing a plan to repay the loan according to the amortization indicated in your loan documents.
A few details regarding loan forgiveness and repayment:
- Borrowers are able to elect a Covered Period of no more than 24 weeks on the forgiveness application, representing the time allowed to use the PPP funds after the PPP loan has been established.
- The required repayment period for the PPP loan begins 10 months after the Covered Period ends.
A Borrower Example:
- Borrower received a PPP loan on January 26, 2021
- Assuming election of the maximum Covered Period of 24 weeks (minimum of 8 weeks), the Borrower’s Covered Period would end no later than July 13, 2021
- If the Borrower does not apply for forgiveness within 10 months after the last day of the covered period (which in this example would be May 13, 2022), loan payments would no longer be deferred, and the Borrower would need to begin making payments on the loan as of June 1, 2022
If you wish to avoid repaying your PPP loan, we encourage you to prepare a forgiveness application as soon as possible, allowing ample time before the scheduled amortization of your PPP loan begins. It is important to note that the SBA forgiveness amount will be no larger than the actual outstanding principal and interest balance on a loan at the time of forgiveness.
PPP Loan Forgiveness Starts Here!
If you are ready to move forward with requesting PPP loan forgiveness, please see the below step-by-step instructions (note: there are separate instructions provided for loans of $150,000 or less, and for those greater than $150,000). In addition, further down this page you will find additional forgiveness tools, including our searchable FAQ library, PPP webinar recordings and presentation slides.
For loans of $150,000 or less, the 3508-S application form is for you…
This is a straightforward form. You do not even need to submit any supporting documentation! Simply follow 3 steps listed below:
Step 1: Download the 3508S calculation model – you only need to complete the Summary tab (cells highlighted in yellow); the other tabs are for your use to keep detailed records should you desire. Note: Under the same section, the corresponding “PPP Loan Forgiveness Documentation Checklist 3508S” is also available for download.
Step 2: Once the model has been completed, please contact your Relationship Manager or Banking Services Officer to receive a secure link for uploading the document.
Step 3: We will review your model and send you a ready-to-file forgiveness application. Just initial the certifications, sign and return.
Congratulations – you’re done! We will submit to the SBA and coordinate from there.
For loans above $150,000, there are new 3508 and 3508-EZ application forms and recently updated models. The 3508 and 3508-EZ have similar requirements as before, but with some minor changes and allow for certain additional non-payroll expenses. Please follow the steps below:
Step 1: Download and complete the 3508 or 3508-EZ calculation models – To assist with completion of the model, we recommend that you utilize the corresponding resources available on the website, including the PPP Loan Forgiveness Documentation Checklist, the User Guide and the How to Video.
Step 2: Once the model is completed, please contact your Relationship Manager or Banking Services Officer to receive a secure link for uploading the model and any required documentation.
Step 3: We will review your model and send you a ready-to-file forgiveness application. Just initial the certifications, sign and return.
Congratulations – you’re done! We will submit to the SBA and coordinate from there.
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