Your loan may be eligible for forgiveness for expenses related to payroll, mortgage interest, rent, or utilities paid or incurred within 24 weeks following the origination date of your PPP loan. You, the borrower, may not be responsible for repayment of the loan if you use all the funds for forgivable expenses. U.S. Bank will follow Small Business Administration (SBA) guidance to determine the amount that is forgivable and will require an application with supporting documentation.
Please note: On July 23, the SBA announced their PPP Forgiveness Platform will open and begin accepting lender submissions on August 10. We are opening our digitial loan forgiveness application to a pilot group in the coming weeks and will be ready to submit completed pilot participant forgiveness applications to the SBA when their platform opens. This timing is subject to extension if any new legislative amendments to the forgiveness process require system changes. Please watch your email for further information.
Your loan funds can be used for the following business-related expenses:
Yes, Congress continues to consider changes to the program as part of broader COVID-19 relief programs. When we receive new guidance or legislation is enacted, we will make any necessary updates to our loan application, loan agreement, and forgiveness application process.
In addition to using your loan funds on eligible expenses, follow the guidance below to maximize your potential loan forgiveness:
The covered period is the time in which businesses must incur or pay expenses to be considered for forgiveness. The covered period starts on the date loan proceeds are disbursed.
If you have a biweekly (or more frequent) payroll schedule, you may elect to calculate eligible payroll costs using a covered period that aligns with your payroll schedule. This alternative payroll covered period must begin the first day of the first pay period following the loan disbursement date and last exactly 8 or 24 weeks, depending on the duration of your covered period.
Note: the alternative payroll covered period does not apply to non-payroll expenses, such as rent, mortgage interest and utilities.
Under current SBA guidance, you may apply for forgiveness any time after you’ve used all of the loan proceeds for which you are requesting forgiveness.
We plan to open our digital loan forgiveness application in the coming weeks and will be ready to submit completed forgiveness applications to the SBA when their PPP Forgiveness Platform opens. This timing is subject to extension if any new legislative amendments to the forgiveness process require system changes. We will continue to communicate updates through email.
There are a handful of considerations for deciding when to apply for forgiveness:
Have I used all the funds? If you have exhausted the funds you intend to use on expenses eligible for forgiveness, you may opt to apply for forgiveness as soon as the digital application is available to you. Those who have not exhausted funds may prefer to wait until the end of their covered period to maximize their loan forgiveness amount.
Do I have all the documents ready? At the time of application, you should be ready to submit all supporting documentation. Some of these documents may not be available immediately, such as proof of payment for expenses incurred during the covered period and paid after, or quarterly tax statements. We recommend having full documentation for all eligible expenses before starting the digital application.
Do I need to prove staffing levels? In some cases, you will need to prove you have maintained staffing levels through the end of their covered period, or reinstated prior staffing levels before December 31, 2020. This does not apply to businesses with employees that had COVID-related business interruptions due to compliance with federal, state and local guidance. Those situations will require borrowers to wait until the end of their covered period or the date of full staffing before submitting a forgiveness application.
When will I need to start making payments? Payments on your loan will be deferred until the SBA provides a decision on your loan forgiveness application.
The latest date you can apply for loan forgiveness is the maturity date of the loan, but you will need to start making payments before then. You will have until 10 months after the last day of the 24-week covered period to apply before you must make the first payment.
According to current SBA guidance, all borrowers will have a 24-week covered period; those whose loan was approved by the SBA prior to June 5, 2020, have the option to elect an eight-week covered period.
Currently, you can apply early in some situations:
Businesses without employees (other than the owners) may apply for loan forgiveness once you have used all the funds and have the necessary documentation, even if your covered period is not over. This applies to all business structures where there were no employees at the time of PPP loan application, and you did not include any employee salaries in the computation of average monthly payroll in your PPP loan application.
Business owners with employees can apply once you have used all the PPP loan proceeds and have the necessary documentation for your application.
Please note that consistent with the latest Procedural Notice from the SBA, subject to certain limited exceptions, you may only submit one loan forgiveness application. Once we render a decision on a borrower’s application and communicate it to the SBA, you cannot submit a second application.
No, please do not fill out the paper application. We will provide a digital loan forgiveness application that mirrors the most up-to-date SBA form. Using the SBA’s paper application form as a reference may be helpful in preparation, but please use the digital portal to fill out the application, upload relevant documents and complete the required attestations and signatures.
Yes, but our digital forgiveness application will auto-populate the SBA number, loan number and lender number for you.
No, with the extension of the covered period to 24 weeks, and additional changes to the forgiveness rules, you do not need to apply within 60 days of funding.
The digital forgiveness application will present you with questions to determine if you’re eligible to use the 3508EZ. If you’re eligible for the 3508EZ, you will automatically be presented with that experience.
Customers using the 3508EZ do not complete the PPP Schedule A or accompanying PPP Schedule A Worksheet. The EZ form requires fewer individual employee-level calculations to determine eligible payroll costs.
The type of documentation required may vary depending on the nature of the cost for which you are seeking forgiveness. Our PPP Forgiveness Documentation reference guides can help in preparation.
All supporting documentation is required to submit the forgiveness application. You may need to wait for statements to be issued in order to submit your application.
A complete listing of the documentation required by the SBA:
Yes. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. The actual amount of loan forgiveness will depend on if the qualifying criteria is met. You will be required to repay any portion of your loan that does not qualify for forgiveness.
You will not have to make any payments on your loan until we receive the SBA’s decision on your application for loan forgiveness. Once you have submitted your complete forgiveness application, the review process can take as long as 150 days – 60 days for U.S. Bank to complete the lender review process and 90 days for the SBA to complete their review under the current guidelines. If you do not submit an application for loan forgiveness within 10 months after the last day of the covered period, you must begin making payments on your loan at that time.
All loans are subject to the updates from the PPP Flexibility Act, regardless of the loan agreement language. Therefore, as long as you submit an application for loan forgiveness within 10 months after the end of your covered period, loan payments will be deferred until we receive the SBA’s decision on your application.
You will be responsible for interest accrued on the portion of the loan that does not qualify for loan forgiveness. Interest accrual begins on the date of disbursement.
Updates that you receive during the application process will come from 1800USBanks@email.usbank.com and firstname.lastname@example.org, please make sure that your email settings will allow receipt from these addresses.
Additionally, during the review process of the supporting documents that you provide, you may receive a direct email from one of our Verification Specialists. Reference this guide for more information about our secure email. These emails require action in order to fully process your application.
To troubleshoot accessing your loan portal, please attempt to clear your internet browser cookies and cache and try again. Also, ensure that you are using the passcode provided to you in the most recent text message and not one from a prior message you received.
If you notice that buttons are missing from the portal or you are experiencing issues when creating document placeholders, you may want to use a different web browser. The portal functions best in Google Chrome. Visit google.com/chrome to download.
The application process for the SBA PPP loan will be online. There will be no need to call U.S. Bank or visit one of our branches. For assistance, you may send an email to our dedicated team at email@example.com. They will be available to respond to questions related to this program and the application process. Additionally, if you work directly with a U.S. Bank Business Banker, you may contact them for additional guidance.
Subject to credit approval and program guidelines. SBA loans are subject to SBA eligibility guidelines. Certain restrictions apply to refinancing options and are subject to program terms. Refinances of existing SBA loans are excluded.
Financing maximums and terms are determined by borrower qualifications and use of funds. U.S. Bank and its representatives do not provide tax advice. Consult an advisor regarding a particular financial situation. Credit products are offered by U.S. Bank National Association.
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