To apply for PPP loan forgiveness, use the SBA’s Loan Forgiveness Application form, Form 3508, or your lender’s equivalent form. You might be able to use Form 3508EZ or Form 3508S if you meet the eligibility guidelines. After completing the form and attaching any necessary documents, submit it to your lender.
Can you get 100% PPP loan forgiveness?
The best part about PPP loans is that up to 100% of the funds can be forgiven. However, you’re going to have to play by the SBA’s rules: Forgivable expenses must be spent on eligible categories and adhere to the 60/40 rule.
Is the entire PPP loan forgiven?
PPP Loan Forgiveness. Borrowers will have their loans forgiven if they use the money for designated expenses. To get the entire amount of the loan forgiven (assuming that at least 60% is spent on payroll and the rest on permitted expenses), you must meet two criteria.
How much of my PPP loan can be forgiven?
If less than 60% of your loan is used for payroll, you can still be eligible for forgiveness, with the amount you spend correlating directly to forgiveness. For example, spending only 40% on payroll would mean 40% of your loan is eligible for forgiveness.
How to apply for SBA loan forgiveness for PPP?
To apply for loan forgiveness: 1. Contact your PPP Lender and complete the correct form: Your Lender can provide you with either the SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, 2. Compile your documentation: Payroll (provide documentation for all payroll periods that overlapped with the …
Do you have to rehire to get a PPP loan?
No. PPP Loans received after December 27th, 2020 are not required to “rehire” any employees in order to receive forgiveness. You will, however, need to maintain current payroll levels during the forgiveness period. (Exceptions to this would include employees who resign or are terminated with cause).
When do you qualify for Paycheck Protection Program loan forgiveness?
Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness. First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: The loan proceeds are spent on payroll costs and other eligible expenses; and