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PPP loan forgiveness Draw Coming Soon in 2022

By: Mary Jones

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First Draw PPP Loan forgiveness terms

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:

PPP Loan forgiveness terms

– Employee and compensation levels are maintained, – The loan proceeds are spent on payroll costs and other eligible expenses, and – At least 60% of the proceeds are spent on payroll costs.

Second Draw PPP Loan

Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

PPP Loan forgiveness terms

– Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan, – The loan proceeds are spent on payroll costs and other eligible expenses, and

How apply for loan forgiveness

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

To apply for loan forgiveness

For borrowers whose lender is participating in direct forgiveness, you can use our portal to apply after August 4, 2021. Direct forgiveness borrowers must use the SBA forgiveness portal.

Compile your documentation

– 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

Submit the forgiveness form and documentation

Depending on whether your lender is participating in direct forgiveness, complete your loan forgiveness application and submit it via the SBA direct forgiveness portal

Continue to monitor your application for forgiveness

SBA or 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.

Forgiveness forms and instructions

– FAQ about PPP Loan Forgiveness – SBA form 3508 PPP Loan Forgiveness Application + Instructions – SBA form 3508EZ PPP Loan Forgiveness Application + Instructions

Apply for loan forgiveness

SBA Form 3508S does not require borrowers to provide additional documentation to show the calculations used to determine their loan forgiveness amount.

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