skip to Main Content
 

This page is based on Dupaco’s best understanding of the SBA’s PPP Loan Forgiveness guidance and requirements. It is subject to change anytime and does not constitute official legal, accounting, or tax advice. Please consult your accountant or attorney when making financial or legal decisions.

Dupaco is now accepting Paycheck Protection Program (PPP) Loan Forgiveness Applications. If you received a PPP Loan through us, you may want to start thinking about whether to repay it or apply for loan forgiveness.

Please scroll to learn about the PPP Loan Forgiveness program and requirements, and instructions for applying through Dupaco.

How PPP Loan Forgiveness works

You must apply for forgiveness with the lender that provided you the PPP loan. But applying doesn’t guarantee forgiveness of all or part of your loan.

Initially, the program provided an eight-week covered period to spend loan funds eligible for forgiveness. But the Flexibility Act extended the covered period from eight to 24-weeks. Current guidelines provide you with two options to begin your eight- or 24-week covered period:

  • 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 received your PPP loan before June 5, 2020, you can elect to use the original eight-week covered period. If you received your PPP loan after June 5, 2020, you’ll fall into the 24-week covered period automatically.

Not sure which covered period to choose?

When deciding whether or not to apply for PPP Loan Forgiveness, time is on your side. And there are several compelling reasons to select the 24-week covered period and wait until it’s completed before applying:

  • The SBA and Treasury are working on an automatic forgiveness threshold. If passed, it will ensure full forgiveness automatically up to the threshold, and eliminate the complexity surrounding the calculations involved in the current application process.
  • Self-employed borrowers might benefit from selecting a 24-week covered period to utilize the entire loan proceeds to cover payroll (vs. an 8 week period). Doing so will eliminate having to provide paperwork related to other eligible expenses.
  • There are uncertainties around whether certain business expenses should be tax-deductible, even if you utilized a PPP loan to pay for them. This could have a major tax implication for your business, so we strongly encourage you to consult with your accountants/tax advisors before applying for forgiveness (in the event that more favorable legislation will be passed in support of expenses paid with PPP loan proceeds).
  • There are still areas where additional guidance from the SBA and Treasury is needed to calculate the Forgiveness amount. The law could change again (in your favor).

When you can apply

We strongly encourage you to wait until your covered period ends before you apply for loan forgiveness. Remember, you have 10-months from the end of your covered period to apply. Here’s how it works:

For the 8-week covered period

You have a total of 12 months from the date the loan was disbursed to apply (8-weeks to spend the money + 10 additional months of deferral).

Example: If you were to elect the 8-week covered period based on an April 18, 2020 loan disbursement date, you have until April 18, 2021, to apply for forgiveness.

For the 24-week covered period

You have a total of 16 months from the date the loan was disbursed to apply (24-weeks to spend the money + 10 additional months of deferral).

Example: If you were to 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. 

If you submit your application before or on the date your 10-month deferral period ends, you won’t have to make any principal or interest payments until the SBA authorizes the forgiveness amount or tells us that you don’t qualify. If you don’t, your loan forgiveness option will officially expire, and you’ll need to make arrangements to start paying back the loan’s principal and interest.

Getting ready to apply

Make sure to gather and complete all the required documentation. Please be as thorough as possible. Failure to do so will slow down your loan forgiveness request. It could also cause the SBA to decrease or deny it. And once you apply for loan forgiveness, you can’t apply again.

Step 1: Download, complete, and save your PPP Loan Forgiveness Application

First, you’ll need to figure out which type of application is right for you:

Form 3508S
Use this application if your PPP Loan amount is $50,000 or less.

Download My Form 3508S

Form 3508EZ
Use this application if your PPP Loan amount is more than $50,000, and you meet at least one of the following criteria:

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

Download My Form 3508EZ

Form 3508
Use this application if your PPP Loan amount is more than $50,000, and you don’t meet the criteria for using Form 3508EZ (listed above).

Download My Form 3508

Step 2: Gather and save copies of your supporting documents

Please click below to see which documents the SBA requires you to provide for your type of business.

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 – 8 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 prior to February 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 prior to February 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 – 8 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 prior to February 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 prior to February 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); and
    • 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 (February 15, 2019 – June 30, 2019; January 1, 2020 – February 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 prior to February 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 prior to February 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 partner(s) do/does not count as an employee

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); and
    • 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 (February 15, 2019 – June 30, 2019; January 1, 2020 – February 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 prior to February 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 prior to February 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); and
    • 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 (February 15, 2019 – June 30, 2019; January 1, 2020 – February 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 prior to February 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 prior to February 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: Use the resources

The  PPP Loan Forgiveness process is far more complicated than applying for the loan was. There are many calculations and supporting documents involved, and they all require close attention to detail. Plus, full or partial loan forgiveness could have legal or tax implications for you and your business.

That’s why Dupaco strongly encourages you to find a trusted financial or legal advisor who can guide you through the process.

In the meantime, you can use these free resources to get familiar with the program expectations and process:

The SBA, in consultation with the Department of Treasury, has compiled a list of frequently asked questions about PPP Loan Forgiveness. It provides additional information and guidance designed to help you make your decision and guide you through the application process.

Download the FAQs

PPPForgivenessTool.com is a free resource to assist small business owners in automating the loan forgiveness application process for their PPP funding.

The tool will calculate the forgiveness amount and also allow you to generate the completed application form. You can then submit the application along with the supporting documents to your lender to apply for forgiveness.

Please keep in mind that if you’re using the tool to calculate your forgiveness amount and generate your completed application form, it assumes either an 8-week or a 24-week covered period, and the calculations are based on the assumption that the data entered is either for the 8-week or 24-week covered period you elect to use.

If you already used 100% of your PPP loan proceeds for eligible expenses before the elected covered period is up and are applying for forgiveness sooner, the tool will not produce accurate forgivable amount. Dupaco strongly encourages members to apply once your elected covered period ends.

Get started

Disclaimer: The PPP Forgiveness Tool is not a Dupaco product. It’s a free tool offered by the American Institute of Certified Public Accountants (AICPA) to help small businesses with the forgiveness process. Since we do not control the website we cannot make any warranties or accept liability for results and/or their storage and destruction of confidential data. Please read their data storage and privacy policy under the FAQ section provided on the web page. This free tool is a resource provided to use at your own discretion.

How to submit your application

Please read this page carefully and be sure to submit all of the requested documentation, including:

  • Completed and signed PPP Loan Forgiveness Application, including:
    • Forgiveness Calculation Form (Form 3508 or 3508 EZ)
    • PPP Schedule A (Form 3508 only)
  • All required supporting documentation based on your type of business

Once you have all the required materials, please use our secure site to upload your application and supporting documents. Doing so will ensure that your information is safely forwarded to the Dupaco Business Services team for processing.

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

What to expect after you apply

After you send us your PPP Loan Forgiveness Application and supporting materials, we ask that you please be patient.

In accordance with federal regulations, we’ll review everything and submit your completed application to the SBA within 60-days of receiving it. During that time, we may reach out to you for additional information.

Once the SBA receives it, they will render their decision about your PPP Loan forgiveness within 90-days.

As always, Dupaco is here to help and support you

If you’re concerned or experiencing financial hardship, please give us a call at 800-373-7600, ext. 0. We’re right here to help you find solutions.

×Close search
Search