Businesses who received Paycheck Protection Program (PPP) loans can apply for loan forgiveness through their financial institution. If a borrower receives a PPP loan, they must also apply for forgiveness of the loan or they will have to pay the loan back.
Borrowers are eligible for forgiveness in an amount equal to the sum of their eligible expenses during their chosen 8-week to 24-week Covered Period. To be considered for full forgiveness, borrowers must use at least 60% of their loan proceeds on payroll costs. Employee and compensation levels must also be maintained.
In this article, we review what may be considered as eligible payroll costs.
To be considered for full loan forgiveness, borrowers use at least 60% of their loan proceeds on payroll costs during the chosen Covered Period. This may include:
Note, loan proceeds may not be used to pay employer Social Security, Medicare or Federal Unemployment taxes. Payroll costs also excludes workers compensation premiums, payments to independent contractors, and payments to employees for leave covered under the Families First Coronavirus Response Act.
Before applying for loan forgiveness, we suggest you familiarize yourself with all of the criteria here before applying. You also need to ensure you’ve spent all of your loan funds on eligible costs prior to applying for forgiveness and have documentation to support the use of proceeds during the Covered Period.
The FNBO customer portal is currently open to First Draw and Second Draw Forgiveness applications. Learn more here.
3508S Loan Forgiveness Application and Instructions
3508EZ Loan Forgiveness Application and Instructions
3508 Loan Forgiveness Application and Instructions
The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.