Paycheck Protection Program
2021 PPP Loan Forgiveness Applications
How and when to apply for loan forgiveness:
A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used and it has been at least eight weeks since the date your loan was funded. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period (covered period is at a minimum 8 weeks, with a maximum covered period of 24 weeks), then PPP loan payments are no longer deferred, and borrowers will need to begin making loan payments to their PPP lender.
To apply for loan forgiveness:
1. Contact your PPP lender at The Bank of Tescott and complete the correct form:
Your lender can provide you with either the SBA Form 3508, SBA Form 3508EZor SBA Form 3508S.
The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. Your lender can provide further guidance on how to submit the correct application for your PPP loan.
2. Compile your documentation:
Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):
- 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
Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):
- Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements
- Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
- Business utility payments: Copies of invoices and receipts, cancelled checks or account statements
This list of documents required to be submitted to your lender is not all-inclusive.
3. Submit the forgiveness form and documentation (if required) to your Bank of Tescott PPP lender:
Complete your loan forgiveness application and submit it to your lender with the required supporting documents (if required-see application for further information) and follow-up with your lender to submit any additional documentation as requested. Consult your lender for additional guidance and provide requested documentation in a timely manner.
4. Continue to communicate with your lender throughout the process:
If SBA undertakes a review of your loan, your lender will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Your lender is responsible for notifying you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.