PPP Loan Forgiveness

PPP Forgiveness Process Is Open

The Paycheck Protection Program loan forgiveness process is now open. To aid in the process, we’ve gathered information regarding the loan forgiveness timeline and qualifications for using the 3508EZ Form. For more information take a look at the SBA’s PPP Loan Forgiveness Application Form. For guidance in receiving forgiveness for PPP loans and a live explanation of the process and the requirements to obtain forgiveness, register for our upcoming webinar, SBA Paycheck Protection Program Forgiveness. 

Loan Forgiveness Process Timeline

  • Borrower submits a Loan Forgiveness Application (SBA Form 3508/3508EZ or lender equivalent) to the lender servicing their loan.
  • Lender reviews and issues to both the borrower and the SBA a decision on the loan forgiveness 60 days or less.
  • SBA remits the appropriate forgiveness amount to the Lender, plus any interest accrued through the date of payment in 90 days or less.
  • SBA will deduct any EIDL Advance Amounts from the forgiveness amount remitted.

Utilizing the Form 3508EZ

You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using the SBA Form 3508EZ if you can check at least one of the options below.

  1. The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
  2. The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (defined in Form 3508EZ Instructions) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000); AND The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details.
  3. The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (defined in Form 3508EZ Instructions) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000); AND The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

Learn More

Join the Missouri SBDC at MSU and the US Small Business Administration on September 9 from 11:00 a.m. – 12:30 p.m. for SBA Paycheck Protection Program Forgiveness Webinar. This webinar is designed for small business owners looking for guidance in receiving forgiveness for Paycheck Protection Program (PPP) loans as part of the CARES Act pandemic recovery. Michael McWhorter, Lead Lender Relations Specialist for the SBA Kansas City District Office, will explain the PPP forgiveness process and the requirements to obtain forgiveness.