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# PPP loan forgiveness

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## Content

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## Where to apply for loan forgiveness

Effective March 13, 2024, all borrowers, regardless of loan size, can use SBA's direct forgiveness portal. 

Applying for forgiveness using the portal can take as little as 15 minutes. The questions you will be asked in the portal correspond to those asked on SBA Form 3508, SBA Form 3508EZ, or SBA form 3508S.

If you would prefer to work with your lender, lenders can still accept PPP forgiveness applications directly. Reach out to your lender for assistance. 

## How to apply for forgiveness

Each forgiveness form has unique instructions for documentation that must be submitted with your loan forgiveness application. For detailed instructions, refer to your chosen forgiveness form for clear guidance.

**For loans of $150,000 and below:**
                  - SBA form 3508S PPP Loan Forgiveness Application + Instructions

SBA Form 3508S **does not** require borrowers to provide additional documentation upon forgiveness submission, but borrowers should be prepared to provide relevant documentation if requested as part of the loan review or audit processes.

**For loans over $150,000:**
                  - SBA form 3508 PPP Loan Forgiveness Application + Instructions
                  - SBA form 3508EZ PPP Loan Forgiveness Application + Instructions

SBA Form 3508 and SBA Form 3508EZ **do**require a borrower to provide additional documentation upon forgiveness submission. 

In the instructions for each form, see the section titled "Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application" for additional details.

### Additional documentation details

###         Payroll      

Provide documentation for all payroll periods that overlapped with the 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:                            - 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, canceled 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
                        - Do NOT include the following when calculating eligible payroll costs for loan forgiveness:                            - Qualified wages paid during April 1, 2020, through December 31, 2021, that are taken into account for purposes of claiming:                              - The Employee Retention Credit under section 2301 of the CARES Act, as amended by sections 206 and 207 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (additional  Guidance on the Employee Retention Credit under Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act (PDF)  and  Guidance on the Employee Retention Credit under the CARES Act for the First and Second Calendar Quarters of 2021 (PDF)  are both available from the IRS), and the Employee Retention Credit under section 3134 of the Internal Revenue Code of 1986, as enacted by the American Rescue Plan of 2021. (Note that reporting these qualified wages in the payroll costs entered on your loan forgiveness application will affect the amount of qualified wages that can be used to claim the employee retention credit.) 

###         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, for the first three listed obligations/services:
                        - 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 canceled checks verifying eligible payments
                        - Business utility payments: Copies of invoices and receipts, canceled checks or account statements
                        - Covered operations expenditures: Copy of invoices, orders or purchase orders paid, and receipts, canceled checks or account statements verifying eligible payments
                        - Covered property damage costs: Copy of invoices, orders or purchase orders paid, and receipts, canceled checks or account statements verifying eligible payments, and verification that costs were related to uninsured property damage due to public disturbance vandalism or looting that occurred in 2020
                        - Covered supplier costs: Copy of contracts, orders, or purchase orders in effect at any time before the Covered Period (except for perishable goods), and copy of invoices, orders, or purchase orders paid, and receipts, canceled checks, or account statements verifying eligible payments
                        - Covered worker protection expenditures:  Copy of invoices, orders or purchase orders paid, and receipts, canceled checks or account statements verifying eligible payments, and verification that expenditures were used to comply with COVID-19 guidance

## When to apply for forgiveness

                  - Borrowers can apply once they've used all the loan proceeds they're requesting forgiveness for.
                  - 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, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Borrowers who have not complied with these conditions will be in default of their PPP loan and will be referred to Treasury for offset or cross servicing. 

## Check the status of your application

**If you submitted your application through the portal:**

You can check your progress in the SBA direct forgiveness portal.

**If you submitted your application through your lender:**

Your lender can provide information about the progress of your forgiveness application.

## Additional forgiveness resources

                  - FAQ about PPP Loan Forgiveness
                  - Direct forgiveness knowledgebase
                  - Video: PPP direct forgiveness borrower portal training
                  - Video:  Creating a new user profile on the PPP direct forgiveness portal
                  - Video: How to apply on the direct forgiveness portal
                  - Video: How to electronically sign your application on the direct forgiveness portal
                  - Video: How to check on your application in the direct forgiveness portal

## Information about PPP loan forgiveness in other languages

Applications must be submitted in English. We provide documents in 17 different languages to help you understand eligibility requirements, fill out applications, and answer frequently asked questions.