We encourage you to begin your forgiveness application if you have completed your covered period and spent your PPP 2 funds on eligible expenses. As a reminder, your covered period can be as few as 8 weeks and as many as 24 weeks (or any period in between). You have 10 months from the end of your covered period to apply for forgiveness, with loan payments deferred on the loan during both the covered period and the following 10 months (for a total of up to 16 months). We have attached lists of information required for each of the different forgiveness application forms. Please review the appropriate list for your situation and upload the necessary information into the portal. If you are using the S form for loans of $150,000 or less, the only two inputs for the forgiveness loan calculation are the Amount Spent on Payroll and the Loan Amount. The Amount Spent on payroll must be at least 60% of the Loan Amount. If you used all the loan proceeds on Payroll, then the Payroll Amount will equal the Loan Amount (the payroll amount cannot be greater than the Loan amount). We encourage you to save your progress frequently while working through the application.
If your loan is not fully forgiven, the unforgiven balance will be amortized over the remaining term of your original 60-month loan at 1% interest with no penalty for early repayment. Once you have submitted a completed forgiveness application and it is approved by the Bank, the application will be submitted to the SBA for its review and approval. For PPP 2 loans under $150,000, there is a simplified forgiveness process consisting of a single page application without supporting documentation. Regardless of the loan amount, you will need to provide signed documentation proving a 25% or greater reduction in revenue. Borrowers were required with their initial application to provide the financial documentation. However, for forgiveness the SBA requires these documents to be signed. As a reminder, the SBA reserves the right to audit documentation for any forgiven PPP 2 loan for up to 6 years. We advise you to retain all documentation supporting your forgiveness requests.
Please contact your lender if you have any questions!