8 Steps to PPP Loan Forgiveness Shutterstock
1. Determine the correct form of application to use: 3508 standard form or 3508EZ. 2. Select the best Covered Period for forgivable expenses for your unique business situation. 3. Track forgivable costs during the Covered Period, which include: • Payroll and owner-compensation • Benefit costs, such as health care, company-paid life insurance and retirement contributions as well as local payroll taxes paid by the company • Certain facilities costs 4. Provide and retain required source documents for all Covered Period costs submitted for forgiveness. 5. Consider, then apply, any reductions in forgiveness that can arise from reductions in FTE and/or wage levels. 6. Consider, then apply, either of the safe harbors related to step 5 above. 7. Complete the borrower certifications required by the SBA.
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Issue 1 | 2021 Q2
100,000+ JOBS
LOANS
1M 97. $2
$1.19
BILLION
D
AVERAGE LOAN SIZE ROUND 1: $193,000 ROUND 2: $172,000
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6,366
CU ST NE O W M ER S
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24 1,7
ROUND 2
WERE IMPACTED BY THESE LOANS
1
Section 1106 of the CARES Act lays out the statutory rules relating to PPP loan forgiveness if your loan is greater than $150,000. In general, whether all or a portion of a PPP loan can be forgiven depends on the amounts for specified expenditures by the borrower during your chosen Covered Period. For these larger loans, you will need to complete up to eight distinct steps in order to secure the SBA’s forgiveness of your PPP loan.
AN ESTIMATED
ROUND 2
The Paycheck Protection Program (PPP), which establishes forgivable loans administered by the Small Business Administration (SBA), is a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Then, at the end of 2020, the CARES Act was improved by the passage of the Economic Aid to the Hard-Hit Small Businesses, Nonprofits, and Venues Act (new act). In addition to providing more funding to the PPP, the new act also greatly streamlined the forgiveness process for loans of $150,000 or less.
8. Submit your application to Heritage Bank. We will review your forgiveness application and forward to the SBA for funding.
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