Preparing to apply for PPP Loan Forgiveness

The instructions and resources on this page will guide you through a process to prepare for your Paycheck Protection Program (PPP) loan forgiveness application. Following these directions carefully will result in you having all of the information and documentation you will need when the time comes to apply.

If you are still within your covered period, please review the information here.

Step 1: Determine your Loan Forgiveness application option

The SBA has created three distinct application processes depending on certain conditions. Your first step is to answer a few questions starting with a question about the loan size.

PPP Forgiveness - Preparing to apply for loan forgiveness

Was your PPP loan above $150,000? * Required
Now, review the statements below selecting YES if the statement is true or NO if the statement is false. Your assertions will determine which application process you should follow.
1) You did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period. (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 you 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 (or, for a PPP loan made after December 27, 2020, the last day of the Covered Period). • 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. * Required
2) You did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period. (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 You were 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 (or, for a PPP loan made after December 27, 2020, requirements established or guidance issued between March 1, 2020 and the last day of the Covered Period) 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. * Required

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Preparing to apply for PPP Loan Forgiveness

Step 1: Determine your Loan Forgiveness application option

PPP Forgiveness - Preparing to apply for loan forgiveness

SBA Guidance on PPP Loan Forgiveness

IMPORTANT NOTICE

COVID RELIEF PROGRAMS FOR FARMERS