The latest guidance from the SBA states for first draw PPP loan forgiveness applications using the S form, documentation does not need to be uploaded, however, you are required to retain all records relating to your PPP loan and may be required to submit such documentation to the SBA, upon request.
The Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) extended the deferral period for borrower payments of principal and interest on all PPP loans to the earlier of:
For second draw PPP loan forgiveness applications, you may be required to provide revenue reduction documentation if your loan was $150,000 or less and you did not provide such revenue reduction documentation prior to your forgiveness application.
The SBA requires borrowers using Form 3508 and Form 3508 EZ to submit documentation in connection with their loan forgiveness application.
For detailed information on the application, including Covered Periods, the type of costs that are eligible for forgiveness, and what documentation you will need to submit in connection with your application, please visit the U.S. Treasury and SBA websites.
The PPP rules currently provide that you may submit a loan forgiveness application at any time after the end of your Covered Period and before the maturity date of your loan, as long as you have an outstanding balance on your loan. However, we understand the SBA may be changing the deadline to apply for PPP loan forgiveness.
Please note that your PPP loan deferral period will end prior to your maturity date. If you applied for forgiveness prior to your deferral period, you will need to begin making payment on any unforgiven amount once the SBA has made a decision on your forgiveness application. If you have not applied for forgiveness prior to your deferral period, you will need to start making payments at the end of your deferral period.
No. According to the rules of the PPP program established by the SBA, a borrower who paid their PPP loan in full would not be eligible to apply for forgiveness. For additional information, please visit the SBA website.
When does my PPP loan deferral period end? / When do I need to start making payments on my PPP loan?
The current SBA application for PPP loan forgiveness contains certain representations and documentation requirements that relate to the end of the Covered Period
- The date that the SBA remits the forgiven amount to the lender or notifies the lender that no forgiveness is allowed; and
- The date that is 10 months after the last day of the forgiveness “covered period” (as defined under the PPP), if the Borrower has not applied for forgiveness by such date.
- Most covered periods will be for a period of 24 weeks. Thus, this would be the date that is 10 months plus 24 weeks following the loan disbursement date.
NOTE: Interest will continue to accrue during the payment deferral period. After the deferral period, clients with an unforgiven balance will receive repayment letters indicating when their first payment is due.
No. As a result, you will only be able to apply for loan forgiveness through Bank of America once your Covered Period has ended.
Applications for PPP loan forgiveness at Bank of America must be submitted digitally through our online PPP loan forgiveness application portal. We will not accept paper loan forgiveness applications.
Once you determine which SBA Loan Forgiveness Application Form you will use, we recommend that prior to applying online through Bank of America for PPP loan forgiveness, you carefully review and fill out the applicable form, and gather any required documentation specified in the instructions: