Thank you for choosing The Merrimack for your PPP loan. We are in the final stages of the PPP forgiveness process. If you have not yet applied for PPP forgiveness, now is a great time to do so and we are here to help. Absent your submission of a forgiveness application, monthly payments on your PPP loan will commence as early as June of 2022, depending on your date of loan origination.
For PPP loans of $150,000 or less, you will be completing SBA Form 3508S, which requires fewer calculations and less documentation. SBA Form 3508S does not require borrowers to show the calculations used to determine their loan forgiveness amount nor does it require that you submit supporting documentation at the time of application. However, the SBA may request information and documents to review those calculations as part of its loan review or audit processes.
For those with PPP loans of over $150,000, please be sure to review the SBA data and supporting documentation requirements ahead of time, obtain and organize any employment reports that will be uploaded to the portal. We recommend that you become familiar with the requirements on the Small Business Administration (SBA) website. You will need to supply the following information:
- Payroll documentation
- Full-time equivalent (FTE) documentation
- Non-payroll documentation
Not only will you need these documents to apply for forgiveness, the SBA requires you to retain them for six years after your loan is fully forgiven and/or repaid, and that you have them available for review in the future if requested.
This list applies to a majority of businesses, but your situation may be unique. The Paycheck Protection Program Forgiveness applications cover many special circumstances, provide information on selection of the covered period (or alternative payroll covered period) for payroll, and address how to treat FTE reduction. The SBA also continues to provide updates on forgiveness documentation requirements at SBA.gov.
While the SBA Forgiveness forms show expirations dates, this has no bearing on your timeframe to apply for forgiveness. You actually have until the maturity of your loan to apply. However, absent an application for forgiveness, your monthly loan payments will become due beginning 10 months after the end of your covered spending period. For those with loans dated in February of 2021, these payments will begin in June of 2022, in March, July of 2022, and so on. For general information on when and how to apply for PPP loan forgiveness, visit the SBA website here.
You can review the current application form(s) and the instructions for their completion using the links below:
- SBA Form 3508 Paycheck Protection Program Loan Forgiveness Application
- SBA Form 3508EZ Paycheck Protection Program Loan Forgiveness Application
- SBA Form 3508S Paycheck Protection Program Forgiveness Application
Resources for Questions
- SBA Frequently Asked Questions on PPP Forgiveness
- Small Business Administration (SBA) Coronavirus Small Business Guidance & Loan Resources
- Second Draw PPP Loans: how to calculate revenue reduction and maximum loan amounts (including specific documentation to provide)
- PPP FAQ for Lenders and Borrowers