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Paycheck Protection Program (“PPP”) loans were intended to provide forgivable loans to help small businesses and nonprofits continue operating and paying employees during the ongoing economic uncertainty caused by COVID-19.
Congressionally allocated funding for PPP loans was depleted on May 28, 2021, and as a result, the Small Business Administration (“SBA”) is no longer accepting applications for PPP loans. Now, we are moving into the forgiveness period for PPP loans.
The PPP loan was designed to cover eligible expenses and payroll for a period of 8-24 weeks. As a PPP borrower, your covered period begins on the date the loan was disbursed and ends on a date you may choose that falls within 8–24 after loan disbursement. You must spend money you received from the loan within your covered period, or you won’t be eligible for full loan forgiveness. The length of your covered period is up to the borrower’s discretion, as long as it is between 8 and 24 weeks for each round of PPP.
PPP Funds must be used for Eligible Expenses such as:
- Payroll must be at least 60% (unless you’re self-employed) or you won’t be eligible for full loan forgiveness
- Health and safety requirements such as personal protective equipment (PPE), health screenings, installation of barriers or expansion of outdoor dining
- Mortgage interest for business real estate
- Necessary supplier costs
- Property damage related to civil unrest
- Rental or lease expense for business location
- Revenue replacement (only if you’re self-employed)
- Software expense
When do you request loan forgiveness?
You may begin applying for forgiveness as soon as your covered period has ended, so between 8 and 24 weeks after your loan disbursement.
The SBA has launched a new way to apply for Forgiveness and we are proud to offer this solution as a service to help you reach full forgiveness.
With the launch of the SBA Forgiveness Portal, we have pre-staged your completed SBA PPP Forgiveness application. The forgiveness application can be completed in less than 5 minutes by clicking here and following instructions provided by the SBA. You will need to sign up for an account by clicking the blue button that says “Register to Start your Request.”
BCL will send weekly emails and is available to provide technical assistance with the application upon request.
What if I have taken out 2 PPP loans?
You’ll need to request Forgiveness separately for each PPP loan that you have. If you received a 2nd PPP loan, you may not apply for forgiveness for your 2nd PPP loan prior to applying for forgiveness for your 1st PPP loan.
How long do I have to apply for PPP Loan Forgiveness?
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
What will you need to submit with your application?
You will need to upload a signed copy of the SBA Form 3805S Loan Forgiveness Application. This form is also available within the SBA Forgiveness Portal.
What if I am having technical issues with the online forgiveness portal?
For best results completing your forgiveness application, we recommend working on a desktop or laptop computer and using Google Chrome as your browser (some users have reported issues when using other browsers).
You can access SBA PPP Direct Forgiveness customer service by calling 877-552-2692.
What to expect after you apply
After your application is submitted, you will receive information about what to expect next. It can take up to 60 days for debt forgiveness approval.
We will review your entire application to make sure that your submission is complete and that you have included all of the appropriate documents. If there are any problems or discrepancies, we will send you an email or call you with instructions.
Upon the SBA’s approval, your loan will be adjusted to the new remaining amount, or completely forgiven. BCL will send an email confirming your loan was forgiveness and reminder to retain all documentation associated with the SBA PPP loan for a minimum of 6 years. In the event additional payments are needed, we will contact you with documentation and next steps.
Please note that after initially reviewing your documents for completion, BCL submits your forgiveness application package to the SBA and the timeline is based on the SBA. Please allow up to 60 days to receive a final response from the SBA.
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