Thank you for your patience as we have worked to understand the Paycheck Protection Program forgiveness process. While the SBA has been accepting applications, they only very recently began issuing forgiveness payments. We feel that we have a smooth process in place that will allow for you to receive the maximum amount of loan forgiveness in an expedited fashion.
Similar to when you applied for your PPP loan, a business banker from Intercity will be personally working with you to ensure your application is properly submitted.
Please review and reference the following documents to assist in completing the forgiveness application (click on document below for link):
WBA Forgiveness Toolkit for PPP Borrowers
- SBA Loan Forgiveness FAQ
- Application Form Instructions - see below
PPP Forgiveness Steps
- Determine your covered period
- Determine which form to use
- Gather supporting documentation
- Submit application and documentation to Intercity
1) Covered Period
The “Covered Period” is either:
- the 24-week (168-day) period beginning on the PPP Loan Disbursement Date, or
- If the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an 8-week (56-day) Covered Period.
For example, if the borrower is using a 24-week Covered Period and received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4. In no event may the Covered Period extend beyond December 31, 2020.
Alternative Payroll Covered Period
For administrative convenience, borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the 24-week (168-day) period (or for loans received before June 5, 2020 at the election of the borrower,
the 8-week or 56-day period) that begins on the first day of their first pay period following their PPP Loan Disbursement Date. Please see the Forgiveness Toolkit for additional details on the alternative payroll covered period.
2) PPP Forgiveness Application Forms
When To Use The 3508EZ Form
The 3508EZ form is for borrowers who received PPP loans of more than $50,000.
If you’re eligible to use the 3508EZ form when applying for PPP loan forgiveness, you’ll get to save some time and energy compared to those who have to fill out the regular 3508 form. However, you’ll have to meet at least one of the following three criteria to be eligible to use the 3508EZ form:
- You are a self-employed individual, an independent contractor, or a sole proprietor who had no employees at the time you applied for a PPP loan
You didn’t reduce salary or wages of employees making under $100K/year by more than 25%, and you didn’t cut any FTE employees (other than employees you were unable to rehire and unable to replace with similarly-qualified employees)
You didn’t reduce the pay of employees making under $100K/year by more than 25%, and you were unable to operate at the same level as you had on February 15th, 2020, because of COVID-19 health and safety restrictions imposed by federal agencies
When To Use The Regular 3508 Form
The regular 3508 form is for borrowers who received PPP loans of more than $50,000.
The 3508EZ PPP forgiveness form is shorter and easier to fill out than the standard 3508 form, so they will require less of your time. However, if you don’t meet the requirements of the EZ form, you’ll have to take the time to fill out the longer 3508 form.
You’ll have to fill out the regular 3508 form if both of the following conditions are met:
When you originally applied for a PPP loan, you were not a self-employed borrower, an independent contractor, or a sole proprietor with no employees
- You reduced the salary or wages of employees earning less than $100,000/year by more than 25%.
If, on the other hand, you’re not self-employed/an independent contractor/a sole proprietor with no employees, and you did not reduce the pay of employees earning less than $100K/year by more than 25%, you’ll still have to use the regular 3508 form if both of the following are true:
- You reduced your number of FTE (full-time equivalent) employees.
- You were still able to operate at the same level of business activity as before February 15th, 2020
Links to forms and instructions:
Please refer to the Forgiveness Toolkit and Application Instructions for details on what documentation is required. In general the following documents should be submitted to Intercity:
- For Borrowers Using the SBA Form 3508EZ:
- PPP Loan Forgiveness Calculation Form 3508EZ
- Payroll Records
- Nonpayroll Costs Documentation
- For Borrowers Using the SBA Form 3508:
- PPP Loan Forgiveness Calculation Form 3508
- PPP Schedule A
- Payroll Records
- Full-Time Equivalent (“FTE”) Documentation
- Nonpayroll Costs Documentation
Note: Please refer to the instructions to determine what documentation needs to be retained by the borrower, but not submitted to Intercity.
4) PPP Forgiveness Submission
Please submit your signed application along with the required documentation by uploading the documents using the link below and choosing the lender that you worked with:
NOTE: Impact of EIDL Advance
If a borrower received an EIDL advance, SBA is required to reduce the borrower’s loan forgiveness amount by the amount of the EIDL advance. SBA will deduct the amount of the EIDL advance from the forgiveness amount remitted by SBA to the lender.
If you have any questions please don’t hesitate to reply to this message, or call one of our business bankers at 715-359-4231.