The covered period is the time during which businesses must incur or pay expenses to be considered for forgiveness. Your covered period starts on the date your PPP loan funds are disbursed and ends on any date of your choosing that is between 8 and 24 weeks from the disbursement date.
For each employee, follow the same method that was used to calculate Average FTE on the PPP Schedule A Worksheet.
Average FTE is how many full-time equivalency employees you had during the covered period and your chosen reference period. The SBA has determined that 40 hours per week is considered full time for the PPP.
Only compensation for employees whose principal place of residence is the United States is eligible for forgiveness.
You should refer to the SBA Form 3508 instructions for details about FTE reduction exceptions.
Yes, you can receive full loan forgiveness if all PPP loan proceeds are used for eligible payroll costs. If so, you do not need to document any non-payroll costs during the covered period.
Payroll costs are considered paid on the day that paychecks are distributed, or you originate an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the last pay period of your covered period are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the covered period.
For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed a gross annual salary of $100,000, as prorated for the covered period. For an 8-week covered period, that’s a maximum of $15,385 per employee; $46,154 per employee for borrowers using a 24-week covered period. Note: the cap does not include eligible non-cash benefits.
Up to 40% of the forgiveness amount can come from eligible non-payroll costs.
An eligible non-payroll cost must be paid during the covered period or incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period. Amounts due for services or obligations during the covered period must be prorated to align with the covered period window.
Any rent or lease payments made pursuant to lease agreements for real or personal property that were in force prior to February 15, 2020. This includes equipment leases.
A service for the distribution of transportation refers to transportation utility fees assessed by state and local governments.
Payment for any business software or cloud computing services that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses.
Cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation.
This includes an expenditure made by an entity to a supplier of goods for goods that are essential to the operations of the entity at the time at which the expenditure is made, and is made pursuant to a contract, order or purchase order that was in effect at any time before the covered period, or, with respect to perishable goods, in effect before or at any time during the covered period.
For application types that require supporting documentation, that documentation is required to be submitted with the forgiveness application. You may need to wait for statements to be issued in order to submit your application.
If you complete your application after you start making payments and receive a forgiveness determination that exceeds your outstanding principal balance, a settlement process will occur for any overpayment.
Following the completion of our review, we will submit a decision on your loan forgiveness application to the SBA for their final review; we will also notify you of that decision. From our submission date, the SBA has up to 90 days to provide us with the final forgiveness amount. When the SBA renders their final review results, we will let you know. Additionally, if the SBA requests more information one of our verification specialists will be in touch. Please note, in some cases we have not received the SBA’s final payment decision within the 90 days. The SBA has notified us that they are doing everything they can to review loan files in a timely manner. We will notify customers when we receive the SBA’s rendered decision.
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 whether the qualifying criteria is met. You will be required to repay any portion of your loan that does not qualify for forgiveness.
No. We request that you do not attempt to submit the paper forms from the SBA. Through our digital forgiveness application portal, we are able to auto-populate and pre-fill fields from your loan. You will be notified when you are eligible to apply for forgiveness and provided directions on how to access our forgiveness portal. Please contact your banker if you have questions or would like to submit a request for early access.
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 up to 24 weeks, and additional changes to the forgiveness rules, you do not need to apply within 60 days of funding.
You may select anyone as the authorized representative to complete the forgiveness application. Once designated, the representative will receive all communications regarding the application going forward. You may contact your banker to make this update. Please note that an individual’s signature as an “Authorized Representative” is a representation to us and the U.S. government that the signer is authorized to make the certifications contained in the application.
You can request to have your planned ownership change approved by U.S. Bank.
No, you can only submit one forgiveness application. Our portal allows you to save your progress; however, a full application, including required documentation, must be completed and submitted through our digital portal before it can be reviewed. You’re encouraged to apply as soon as you have collected the required documentation.
Yes. All borrowers, regardless of PPP loan amount, must submit an application (SBA Form 3508, 3508EZ, or 3508S, as applicable) in order to request loan forgiveness.
Form 3508EZ - For businesses who did not reduce employee compensation by greater than 25% during the covered periods compared to the most recent full calendar quarter before their covered period (excluding employees who received, during any single pay period in 2019, annualized compensation of more than $100,000) and also meet one of the following criteria:
Form 3508 - For borrowers who do not qualify to use any other forms or would like to claim a Safe Harbor reduction in FTE or compensation level is available through the full form.
The digital forgiveness application will present you with questions to determine which form you’re eligible to use. If you’re eligible for the 3508EZ or 3508S, you will automatically be presented with that experience.
No. The forgiveness application forms are the same for both First and Second Draw loans.
If you have an application in process that has not yet been submitted to the SBA, we will continue to process your application unless you inform us that you would like to withdraw your application and reapply using Form 3508S. We have sent an email to those customers impacted with instructions on how to notify us.
No. The forgiveness application forms are the same for both First and Second Draw loans.
No. A separate forgiveness application must be submitted for each PPP loan.
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.
These loans are just like any other SBA loan. After the payment deferral period ends, you will receive monthly statements and can make payments online, at a branch or by mail. You can obtain a payoff quote by contacting the Business Service Center.
No. Once a PPP loan is paid in full, you can no longer apply for loan 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 up to 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. The loan accrues daily simple interest from the date of disbursement. Based on current SBA guidance, the SBA will pay the bank the loan forgiveness amount, plus any accrued interest on that amount, through the date of payment.
No. Under current guidance, the SBA will not accept loan forgiveness applications submitted by a borrower that has fully repaid its PPP loan.
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.
Access to our loan forgiveness portal will be granted through a direct email. We will send invitations to customers who had a First Draw PPP loan in 2020 in order based on the loan disbursement date. All 2020 borrowers should receive an invitation by the end of April. We expect to start inviting 2021 borrowers in mid-May. If you’re eligible to apply, but can’t locate your invitation to access the portal, please check your spam folder for an email from firstname.lastname@example.org. You can also contact your banker directly or the Business Service Center at 800-673-3555. Representatives are available Monday through Friday from 8 a.m. to 7:30 p.m. CT and Saturday from 8 a.m. to 6:30 p.m. CT.
If you get a blank screen when entering the portal, 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. You can also try accessing the portal from a different computer or device.
If you suspect fraud, contact us immediately at 877-595-6256. We are available 24 hours a day, 7 days a week to help protect you.
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.
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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. Some restrictions and fees may apply.
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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