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Ready to apply for PPP Loan Forgiveness?
You're in the right place.

If you received a Paycheck Protection Program loan through us, you’ll need to decide whether to repay it or apply for loan forgiveness. But before you get started, here’s what you should know:

  • You must apply with the lender that provided your PPP loan.
  • If your PPP loan was for $150,000 or less, the forgiveness process is simple!
  • Applying doesn’t guarantee forgiveness of all or part of your loan.
  • Once you apply for loan forgiveness, you can’t apply again.
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This information is based on Dupaco’s best understanding of the Small Business Administration’s PPP Loan Forgiveness guidance and requirements. It’s subject to change anytime and doesn’t constitute official legal, accounting or tax advice. Full or partial loan forgiveness could have legal or tax implications for you and your business. Please consult your accountant or attorney when making financial or legal decisions.

Calendar

Step 1:

Determine when to request loan forgiveness

You should apply for PPP Loan Forgiveness when you’ve used all of the funding that you’d like to be forgiven and at least 60 days before your first PPP loan payment is due.* You’ll need to spend your PPP loan funds that you’d like forgiven during one of these covered periods:

You have 12 months from when your loan was disbursed to apply: Eight weeks to spend the money + 10 additional months of deferral.

Example: If you elect the eight-week covered period based on an April 18, 2020 loan disbursement date, you have until April 18, 2021, to apply for forgiveness.

You have 16 months from when your loan was disbursed to apply:
24 weeks to spend the money + 10 additional months of deferral.

Example: If you elect the 24-week covered period based on an April 18, 2020, loan disbursement date, you have until August 18, 2021, to apply for forgiveness.

You can choose whether your covered period begins:
• The date your lender made the first disbursement of your loan.
• The first day of your first pay period after receiving your loan.

*Hint: If you apply before your loan matures, you won’t have to make any payments until the SBA issues its decision.

Resources

Step 2:

Gather your documentation

Failure to gather your documentation could slow down your request—and may cause the SBA to decrease or deny it. The SBA requires you to provide certain documents for your type of business.

If you borrowed $150,000 or less, you don’t need to submit these—just have them on hand in case the SBA requests them later.

Payroll costs:

  • 2019 Schedule C from 2019 tax return filed or to be filed.
  • Bank account statements (or third-party payroll reports) documenting cash compensation paid for the covered period: Eight weeks (56 days) or 24 weeks (168 days) from the date the loan was disbursed.

Non-payroll costs:

  • Mortgage/secured debt: Copy of amortization schedule evidencing the existence of mortgage/secured debt before Feb. 15, 2020, and eligible interest amounts; copies evidencing payment of interest (i.e. canceled checks, receipts).
  • Rent/lease payments: Copy of applicable lease agreements evidencing the existence of lease obligation before Feb. 15, 2020; receipts evidencing payment of rent.
  • Utility payments: Copies of invoices from February 2020 and those paid during measurement period; receipts evidencing payment.

Payroll costs:

  • 2019 1065 tax return filed or to be filed.
  • Bank account statements (or third-party payroll reports) documenting cash compensation paid for the covered period: Eight weeks (56 days) or 24 weeks (168 days) from the date the loan was disbursed.

Non-payroll costs:

  • Mortgage/secured debt: Copy of amortization schedule evidencing the existence of mortgage/secured debt before Feb. 15, 2020, and eligible interest amounts; copies evidencing payment of interest (i.e. canceled checks, receipts).
  • Rent/lease payments: Copy of applicable lease agreements evidencing the existence of lease obligation before Feb. 15, 2020; receipts evidencing payment of rent.
  • Utility payments: Copies of invoices from February 2020 and those paid during measurement period; receipts evidencing payment.

Note: Owner does not count as an employee

Payroll costs:

  • 2019 Schedule C from 2019 tax return filed or to be filed.
  • Bank account statements (or third-party payroll reports) documenting cash compensation paid to employees.
  • Tax forms for the periods that overlap with the covered period:
    • Payroll tax filings reported or that will be reported, to the IRS (IRS Form 941).
    • State quarterly business and individual employee wage and unemployment insurance tax filings reported, or that will be reported.
  • Payment receipts, canceled checks or account statements documenting the amount of employer contributions for forgivable employee health plans or retirement plans.
  • Full-Time Employee (FTE) Calculations:
    • Documentation evidencing the number of FTEs for the applicable comparison elected by the borrower (Feb. 15, 2019–June 30, 2019; Jan. 1, 2020–Feb. 29, 2020). Acceptable documentation includes payroll records, Form 941 or state tax filings.

Non-payroll costs:

  • Mortgage/secured debt: Copy of amortization schedule evidencing the existence of mortgage/secured debt before Feb. 15, 2020, and eligible interest amounts; copies evidencing payment of interest (i.e. canceled checks, receipts).
  • Rent/lease payments: Copy of applicable lease agreements evidencing the existence of lease obligation before Feb. 15, 2020; receipts evidencing payment of rent.
  • Utility payments: Copies of invoices from February 2020 and those paid during the measurement period; receipts evidencing payment.

Note: General partners do not count as employees

Payroll costs:

  • 2019 1065 tax return filed or to be filed.
  • Bank account statements (or third-party payroll reports) documenting cash compensation paid to employees.
  • Tax forms for the periods that overlap with the covered period:
    • Payroll tax filings reported or that will be reported to the IRS (IRS Form 941).
    • State quarterly business and individual employee wage and unemployment insurance tax filings reported or that will be reported.
  • Payment receipts, canceled checks or account statements documenting the amount of employer contributions for forgivable employee health plans or retirement plans.
  • Full-Time Employee (FTE) Calculations:
    • Documentation evidencing the number of FTEs for the applicable comparison elected by the borrower (Feb. 15, 2019–June 30, 2019; Jan. 1, 2020–Feb. 29, 2020). Acceptable documentation includes payroll records, Form 941 or state tax filings.

Non-payroll costs:

  • Mortgage/secured debt: Copy of amortization schedule evidencing the existence of mortgage/secured debt before Feb. 15, 2020, and eligible interest amounts; copies evidencing payment of interest (i.e. canceled checks, receipts).
  • Rent/lease payments: Copy of applicable lease agreements evidencing the existence of lease obligation before Feb. 15, 2020; receipts evidencing payment of rent.
  • Utility payments: Copies of invoices from February 2020 and those paid during measurement period; receipts evidencing payment.

Payroll costs:

  • Bank account statements (or third-party payroll reports) documenting cash compensation paid to employees.
  • Tax forms for the periods that overlap with the covered period:
    • Payroll tax filings reported, or that will be reported, to the IRS (IRS Form 941).
    • State quarterly business and individual employee wage and unemployment insurance tax filings reported or that will be reported
  • Payment receipts, canceled checks or account statements documenting the amount of employer contributions for forgivable employee health plans or retirement plans.
  • Full-Time Employee (FTE) Calculations
    • Documentation evidencing the number of FTEs for the applicable comparison elected by the borrower (Feb. 15, 2019–June 30, 2019; Jan. 1, 2020–Feb. 29, 2020). Acceptable documentation includes payroll records, Form 941 or state tax filings.

Non-payroll costs:

  • Mortgage/secured debt: Copy of amortization schedule evidencing the existence of mortgage/secured debt before Feb. 15, 2020, and eligible interest amounts; copies evidencing payment of interest (i.e. canceled checks, receipts).
  • Rent/lease payments: Copy of applicable lease agreements evidencing the existence of lease obligation before Feb. 15, 2020; receipts evidencing payment of rent.
  • Utility payments: Copies of invoices from February 2020 and those paid during measurement period; receipts evidencing payment.

Step 3:

Download, complete & submit your application

Download the forgiveness application that best fits your borrowed amount:

Use the simplified Form 3508S if your PPP loan is $150,000 or less.
This is all you’ll need to submit to apply for forgiveness.

Download My Form 3508S

Use the simplified Form 3508EZ if your PPP loan is more than $150,000 and you meet at least one of these criteria:

  • Are self-employed and have no employees.
  • Did not reduce the salaries or wages of your employees by more than 25% and did not reduce the number or hours of your employees.
  • Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of your employees by more than 25%.

Download My Form 3508EZ

Use Form 3508 if your PPP loan is more than $150,000 and you don’t meet the criteria for using Form 3508EZ (listed above).

Download My Form 3508

When you’re ready, use our secure Microsoft Sharepoint site to upload and submit your application and, if required, supporting documents:

  • Completed and signed PPP Loan Forgiveness application including:
    • Forgiveness Calculation Form (Form 3508 or 3508EZ)
    • PPP Schedule A (Form 3508 only)
  • All required supporting documentation if you borrowed more than $150,000.

This site is monitored and secured by our Chief Information Officer, Steve Ervolino. If you’re using a desktop computer, please use the Google Chrome or Microsoft Edge web browser to upload your documents.

Upload my application & documents

Cooperative-Owner
What to expect after you apply

We’ll review everything and submit your completed application to the SBA within 60 days of receiving it. During that time, we might reach out to you for additional information. Once the SBA receives your request, they have 90 days to issue a decision.

As always, Dupaco has your back

You can find more PPP loan-related information below. And if you’re concerned or experiencing financial hardship, please call us at 800-373-7600, ext. 0. We’re here to help you.

SBA guide to PPP loan forgiveness  Covid-19 FAQ  Small Business Resources & Programs

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