SBA PPP Loan Forgiveness

What we know about PPP loan forgiveness

2020欧洲杯体育网上投注On June 17, the SBA issued a new Interim Final Rule that implements changes made by Congress in the Paycheck Protection Program Flexibility Act of 2020 (PPPFA). They also issued a revised forgiveness application to reflect the PPPFA changes along with a new “EZ” Paycheck Protection Program loan forgiveness application. A link to the new Interim Final Rule is .

All recipients of SBA PPP funding will be required to submit an application seeking loan forgiveness. If you received your PPP funding through Enterprise, we will process your forgiveness application. Each PPP borrower will receive an email from us with a link to their forgiveness application. We are still waiting for final guidance on how to submit forgiveness to the SBA. Until that guidance is received and evaluated, we will not accept loan forgiveness applications. Please do not submit the Loan Forgiveness Application at this time. 

2020欧洲杯体育网上投注Once the SBA issues further guidance and we begin accepting applications for forgiveness, we will process them and submit a recommendation within 60 days of receipt of the application. We will notify you of our recommendation to the SBA. The SBA then has 90 days to process your application and determine your forgiveness eligibility. The SBA has the right to review any loan at any time. We will notify you within 5 days if the SBA reviews your loan and requests additional information. Otherwise, we will notify you when we receive the SBA’s final determination of forgiveness.

The new Form 3508EZ applies to borrowers who meet any one of the following criteria:

  • The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form. 
  • Did not reduce salary or wages for any employee by more than 25% during the covered period AND did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
  • Did not reduce salary or wages for any employee by more than 25% during the covered period AND experienced reductions in business activity as a result of health directives related to COVID-19.

If you meet at least one of the criteria above, you will be allowed to use the SBA Form 3508EZ to apply for forgiveness. For review purposes only, the new Form 3508EZ is and the form instructions are .
 
2020欧洲杯体育网上投注 If you do not meet any of the criteria above, you cannot use SBA Form 3508EZ and instead you must apply for forgiveness of your PPP loan using SBA Form 3508 (6/20). For review purposes only, the new Form 3508 is and the form instructions are . 

As we wait for further guidance, you should gather the following documents verifying eligible expenses, including the number of full-time equivalent employees on your payroll and their pay rates for the time frame used to verify you met the staffing and pay requirements:

  • Payroll reports from your payroll provider;
  • Payroll tax filings (Form 941);
  • Income, payroll, and unemployment insurance filings from your state;
  • Documents verifying any retirement and health insurance contributions; and
  • Documents verifying your eligible interest, rent, and utility payments (canceled checks, payment receipts, account statements).