PPP Loan Forgiveness
Updated: January 21, 2021 at 9:00 a.m.
The Small Business Association (SBA) has provided Paycheck Protection Program (PPP) loan forgiveness guidance that includes application and processing instructions for both borrowers and banks.
The application process varies depending on your loan amount, so please refer to the sections below for guidance.
Loans Over $150,000
We recommend borrowers begin applying for forgiveness by working with their banker once they’ve reached the end of their Covered or Alternative Covered Period. In this case, there are two applications to choose from:
- PPP Loan Forgiveness Application Form 3508 (Revised 1/19/2021) – Use this forgiveness application for both First and Second Draw Loan forgiveness applications where a Form 3508 is required to be used.
- PPP Loan Forgiveness Application Form 3508EZ (Revised 1/19/2021) – Use this forgiveness application for both First and Second Draw Loan forgiveness applications where a Form 3508EZ can be used.
There are distinct differences between the applications, so please read the instructions carefully to determine which is most appropriate for you to complete. The Form 3508EZ will be used by most PPP borrowers; however, it is not suitable for all loans. The 3508 is a more comprehensive form and may require professional assistance to complete. Please refer to the application for a complete list of required documentation that must be submitted with each application.
Loans $150,000 and Less
Loans $150,000 and less have their own application – the 3508S. This application also requires borrowers to submit supporting information with their application, and a comprehensive list can be found on the application:
- PPP Loan Forgiveness Application Form 3508S (Revised 1/19/2021) – Use this forgiveness application for both First and Second Draw Loan forgiveness applications where a Form 3508S can be used (loans of $150,000 or less).
The SBA has reserved the right to review any loan at any time. Supporting documentation for your PPP loan should be retained for six years after the date of your loan forgiveness, which includes documentation not sent to Bankers Trust.
What Happens Next?
Once you have provided your complete forgiveness application to Bankers Trust, we will review the application for accuracy. From there, Bankers Trust will submit the completed application along with the supporting information to the SBA. The SBA requires the Bank to process the application within 60 days of receiving it. The SBA has 90 days to respond with final approval.