PPP loan forgiveness

Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness.

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Where to apply for loan forgiveness

Review the list of lenders participating in direct forgiveness to determine whether you can use SBA's direct forgiveness portal or must apply through your lender.

If your lender is participating in direct forgiveness through SBA

If your lender is participating in direct forgiveness and your loan is $150,000 or below, you can use the SBA direct forgiveness portal or apply through your lender. 

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 3508S.

If your lender is not participating in the direct forgiveness portal

Your lender can provide further guidance on which form to submit your application. This could  include either SBA Form 3508, SBA Form 3508EZ, or SBA Form 3508S. 

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 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 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

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:

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

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.

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Last updated February 13, 2024