Paycheck Protection Program Loan Forgiveness FAQ's

 1. Which loan forgiveness application should sole proprietors, independent
contractors, or self-employed individuals with no employees complete?

Sole proprietors, independent contractors, and self-employed individuals who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form automatically qualify to use the Loan Forgiveness Application Form
3508EZ or lender equivalent and should complete that application. 

2. Do lenders need the original copy of the the loan forgiveness application or supporting documents?

No, they do not need the original documents, scanned copies are acceptable.  

3. Will I need to make payments on the loan?

The borrower will need to submit the forgiveness application within 10 months after the covered period. If the loan is fully forgiven then the borrower is not responsible for any payments. If only part of the loan is forgiven or is denied completely then repayment will need to be made for the remaining balance of the loan.

4. When do I need to submit my loan forgiveness application by?

The SBA requires that the loan forgiveness application is submitted before 10 months after the covered period (24 weeks after receiving the funds)

5. What will happen if I do not fill out the application within the 10 month period?

 The first payment will be due and you will need to start making payments until the loan forgiveness application is submitted. Borrowers have until the maturity date (2-5 years) to submit the application.  

For more information on the loan forgiveness payroll cost, loan forgiveness nonpayroll costs, loan forgiveness reductions, or the economic injury disaster loan (EIDL) visit : https://www.sba.gov/sites/default/files/2020-10/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29.pdf


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