NEW! Submit your pre-filled forgiveness application request to Dupaco through the U.S. Small Business Administration. Apply here.
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:
*Hint: If you’re contacted about your forgiveness application by anyone besides your lender, it’s likely fraud.
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.
Apply for forgiveness with Dupaco
The easiest way to apply for forgiveness is through the U.S. Small Business Administration’s pre-filled application. This tool lets you submit your forgiveness request to Dupaco automatically. But if you’d prefer to manually complete and submit your application, you can do so below!
When to request loan forgiveness Your documentation Applications & submission Discover resources
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 your covered period. The year you received your loan will help you determine your covered period:
Your covered period is either eight or 24 weeks. 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.
Your covered period can be anywhere from eight to 24 weeks. 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 Aug. 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.
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 for a second PPP loan, you might need to submit proof of your 25% reduction in revenue. Have that information on hand in case the SBA requests it 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.
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%.
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).
When you’re ready, use our secure Microsoft Sharepoint site to upload and submit your application and, if required, supporting documents:
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.
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. Hint: If you’re contacted about your forgiveness application by anyone other than Dupaco, it’s likely fraud.
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
