The Paycheck Protection Program (PPP)
The PPP was formed under the CARES Act and administered by the SBA to make loans to businesses impacted by COVID-19. This unique program includes a provision for the SBA to forgive up to the full amount of the loan, if used for eligible expenses.
PPP Loan Forgiveness Update
What You Need to Know
We are currently accepting all 3 versions of the SBA’s forgiveness applications (3508, 3508EZ & 3508S) for both 8-week and 24-week covered periods.
Please review the PPP Loan Forgiveness Documentation Requirements to ensure that you are compiling all of the required documentation that you will be asked to provide when you apply for loan forgiveness.
- The newest application released by the SBA (3508S) is a simplified version of the 3508EZ, however, the documentation requirements remain the same.
- This is not the automatic forgiveness option that the industry had been hoping for because you will still need to submit documents to support how you spent your PPP loan proceeds.
- However, borrowers using the 3508S are not required to submit their forgiveness calculations.
- And, forgiveness amounts for borrowers using this form are not subject to FTE or wage reductions.
- Undercurrent guidelines, forgiven PPP expenses are not tax-deductible. Industry sources tell us that this topic is currently under discussion.
- All borrowers have up to 10 months after the expiration of their covered period to submit their forgiveness application.
- The PPP Flexibility Act automatically extended the deferral period for all borrowers to the date the SBA remits forgiveness funds to Seattle Bank.
- If there is a balance left over after the SBA has made a decision on your forgiveness application, Seattle Bank will reach out to you to determine if you’d like to pay off the balance in full or set up monthly payments.
Phone: (206) 281-1500
Email: [email protected]
You can sign up for Seattle Bank Small Business Relief email updates here.