Paycheck Protection Program Forgiveness Application and Instructions
We are accepting forgiveness applications for all Paycheck Protection Program (PPP) loans. You may work with your existing Wood & Huston Bank loan officer to complete and submit your Paycheck Protection Program (PPP) Forgiveness Application.
The Small Business Administration (SBA) released a two-page forgiveness form designed specifically for Paycheck Protection loans of $50,000 or less - Form 3508S. You may review the instructions for Paycheck Protection Loan Forgiveness Form 3508S here.
The Small Business Administration (SBA) released a three-page "EZ" Paycheck Protection Loan Forgiveness Application borrowers should use to seek forgiveness of their SBA Paycheck Protection Program (PPP) loans if they meet the criteria below. Please review the instructions for "EZ" Paycheck Protection Loan Forgiveness here. Form 3508EZ applies to borrowers who meet any one of these criteria:
- Applied for the PPP loan as self-employed, an independent contractor, or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25% and did not reduce the number of hours of their employees (excepting laid-off employees who refused an offer to return.)
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
For borrowers who do not meet the criteria outlined above or if your PPP loan amount exceeds $2 million, please complete SBA's Form 3508.
All participants in the SBA PPP loan program should continue to document their use of funds under the program and follow the evolving guidance on forgiveness. You should follow the SBA and Treasury websites for updates, and we will update our site periodically.
Summary Features of the SBA Paycheck Protection Forgiveness Program
- You may now elect a 24-week Alternative Covered Period (If you receive your PPP loan prior to June 5, you can still use the 8-week period) to spend loan proceeds starting the date the funds were deposited into your account.
- You must use at least 60% of the loan proceeds for eligible payroll costs to qualify for full Loan Forgiveness, down from 75%.
- You can use up to 40% of the loan proceeds for non-payroll costs, up from 25%.
- You may be able to use FTE Safe Harbor provisions if you now have fewer full-time equivalent (FTE) employees now if you document an inability to:
- Rehire individuals who were employees as of February 15, 2020
- Hire similarly qualified employees for unfilled positions on or before December 31, 2020
- Return to the same level of business activity before February 15, 2020, due to compliance with requirements or guidance from the Secretary of Health and Human Services, the Director of the Center for Disease Control and Prevention, or the Occupational Safety and Health Administration from March 1, 2020 through December 31, 2020, related to maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.
Wood & Huston Bank and its subsidiaries are not tax or legal advisors. Please consult your tax or legal advisor for more information regarding your personal situation. We have no such agency relationships with CPAs, tax, or legal advisors.
Date Last Updated: Janaury 20, 2021