Before you apply for loan forgiveness
Learn about the application process
Watch our overview video on the PPP forgiveness process. It’ll help you prepare for the application and give you an idea of what to expect.
Gather your documents
There are specific documents you’ll need to have for submitting your application. See the types of documents you’ll need.
Prepare for the forgiveness application you will complete
The SBA offers 3 different versions of the PPP Loan Forgiveness Application. Learn which you will complete.
Go to your dashboard
Start your application here. But first, you’ll need your SBA loan number to sign in. We’ll email it to you when you’re eligible to apply.
Gather your documents
To apply for the Paycheck Protection Program (PPP) loan forgiveness, you’ll need to provide documents to substantiate how your loan proceeds were used by your business. Many payroll providers are creating custom reports for this purpose, so you may want to check in with yours to see what’s available. If you plan to start gathering documentation on your own, here’s what you’ll need.
1. Payroll Documents
You'll need to provide documents that verify your eligible cash compensation and non-cash benefit payments during the 8 or 24-week loan Covered Period (or Alternative Payroll Covered Period), including:
Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period (or Alternative Payroll Covered Period):
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans
2. Full-time Equivalent (FTE) Documents
Note: If you qualify for the EZ application, you may not need to gather the FTE documents.
For the full forgiveness application, you'll need to provide documents showing your average number of FTE employees on payroll per month based on one of the following date ranges of your choice:
- February 15, 2019 and June 30, 2019;
- January 1, 2020 and February 29, 2020; or
- If you're a seasonal employer, either of the previous date ranges or any consecutive twelve-week period between May 1, 2019 and September 15, 2019.
You’ll need to provide Average FTE for this date range when you apply for forgiveness, but your document(s) can cover periods longer than your chosen reference period. These include:
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941), and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
If you were unable to return to the previous FTE levels, be prepared to maintain documentation related to any permitted “safe harbor” FTE reduction situations, that include:
- There was an inability to rehire individuals who were employees on February 15 (for example an employee refused a written offer of rehire because they left the area or were concerned about their health status);
- There was an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020 (for example, you placed advertisements that required certain education or work history, and no applicants applied who met that minimum criteria), or;
- You were unable to return to prior FTE levels because your business was not able to operate at the same level of business activity due to compliance with legal requirements established or guidance related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19 (for example local authorities only permitted your restaurant to provide take-out or delivery, or only allowed 50% of the tables to be occupied).
3. Nonpayroll documents
Finally, for any nonpayroll expenses you submit for forgiveness, you’ll want to gather documents showing (1) that these obligations/services existed before February 15, 2020 and (2) eligible payments from the 8 or 24-week loan Covered Period. These include:
Business mortgage interest payments
- Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or
- Lender account statements from February 2020 and the months from the beginning of the covered period through one month after, verifying interest amounts and eligible payments.
Business rent or lease payments
- Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or
- Lessor account statements from February 2020 and from the beginning of the Covered Period through one month after, verifying eligible payments.
Business utility payments
- Copy of invoices from February 2020 and those paid during the Covered Period, and
- Receipts, cancelled checks, or account statements verifying those eligible payments.
This list applies to the majority of businesses, but your situation may be unique, especially if you are a self-employed. The Paycheck Protection Program Forgiveness Applications (SBA Form 3508 or 3508EZ) covers many special circumstances, provides information on selection of the Covered Period (or Alternative Payroll Covered Period) for payroll, and addresses how to treat FTE Reduction. The SBA also continues to provide updates on forgiveness documentation requirements at SBA.gov.
Organize all the documents you gather and put them in a safe place; the SBA requires you to retain them for six years after your loan is fully forgiven and/or repaid, and to have them available for review in the future if requested.
Which SBA PPP loan forgiveness application fits your situation?
Currently, the SBA offers 3 different versions of the PPP Loan Forgiveness Application. Each is designed to serve a different business situation and, for many smaller borrowers, may streamline the steps to forgiveness.
Below, you can find out which version your business may be eligible to complete.
If you're a Bank of the West PPP customer, our online application will guide you to which SBA PPP loan forgiveness application form you are eligible to complete.
Businesses with PPP loans $50,000 or less
You may be eligible for PPP Loan Forgiveness Application Form 3508S
Form 3508S is intended to keep the forgiveness process simple. It contains fewer calculations and requires you to make certifications regarding how you used PPP funds as required by law. It will require less documentation but you will still need to submit some supporting documents as required by the SBA. More notably, the 3508S application removes reductions in forgiveness if, during the covered period, your business reduced salaries or wages by 25% or reduced the number of employees or hours or was unable to operate at previous business levels.
Form 3508S application eligibility details:
- You received a PPP loan of $50,000 or less AND
- If your business is part of an affiliate and the total combined PPP loans of the affiliate is less than $2,000,000 (Note that if your business is part of an affiliate with a combined loan of more than $2,000,000 you may be eligible to complete the 3508EZ or the standard PPP Forgiveness Application Form. Check the eligibility details for more information.)
You can find more details and instruction about Form 3508S on the SBA website.
Documents required for 3508S
Payroll Documents: Bank statements, tax forms, cancelled checks, average number of full-time equivalents, etc.
Non-payroll Documents: Mortgage interest payments, amortization schedule and receipts, rent payments, utility payments, etc. You can find a helpful list of documents in the section below.
Self-employed businesses (Sole Proprietors, Independent Contractors, etc.) with PPP loans $50,000 or more
You may be eligible for PPP Forgiveness Application Form 3508EZ (AKA the “EZ Form”)
Form 3508EZ application aims to simplify the forgiveness application steps for self-employed businesses with PPP loans $50,000 or more because employee details and information are not part of your situation.
You can find more details and instruction about Form 3508EZ on the SBA website.
3508EZ application eligibility details:
- You are a self-employed individual, independent contractor or sole proprietor with no employees at the time you applied for your PPP loan and did not include any employee salaries in your average monthly payroll calculation, or
- Your business did not reduce the annual salary or hourly wages of any employee by more than 25% during the Covered Period AND you did not reduce the number of employees or average paid hours of employees, or
- Your business did not reduce the annual salary or hourly wages of any employee by more than 25% during the Covered Period AND was unable to operate at the same level of business activity due to compliance with specific COVID-19 health and safety requirements or guidelines.
Required documents for 3508EZ
Payroll Documents: Bank statements, tax forms, cancelled checks, average number of full-time equivalents, etc.
Non-payroll Documents: Mortgage interest payments, amortization schedule and receipts, rent payments, utility payments, etc.
You can find a helpful list of documents in the section below.
Businesses with PPP loans $50,000 or more that did not significantly reduce employees and wages and businesses that were required to reduced business activity
You may be eligible for PPP Forgiveness Application Form 3508EZ (AKA the “EZ Form”)
Form 3508EZ application can help streamline the application process for businesses that upheld the spirit of the PPP: no significant reduction in employees (not by more than 25%) or their pay during the Covered Period. However, COVID-19 affected businesses differently and those that were required to reduce business activity but did not significantly reduce employees (not by more than 25%) and their pay during the covered period can also use this streamlined application.
3508EZ application eligibility details:
- You are a self-employed individual, independent contractor or sole proprietor with no employees at the time you applied for your PPP loan and did not include any employee salaries in your average monthly payroll calculation, or
- Your business did not reduce the annual salary or hourly wages of any employee by more than 25% during the Covered Period AND you did not reduce the number of employees or average paid hours of employees, or
- Your business did not reduce the annual salary or hourly wages of any employee by more than 25% during the Covered Period AND was unable to operate at the same level of business activity due to compliance with specific COVID-19 health and safety requirements or guidelines.
Required documents for 3508EZ
Payroll Documents: Bank statements, tax forms, cancelled checks, average number of full-time equivalents, etc.
Non-payroll Documents: Mortgage interest payments, amortization schedule and receipts, rent payments, utility payments, etc.
You can find a helpful list of documents in the section below.
Businesses with more complex situation or those businesses that made significant reductions in employees and wages
You are eligible to apply using the PPP Loan Forgiveness Application
The PPP Loan Forgiveness Application (AKA “the standard application”) helps businesses that may have PPP loans $50,000 or more and made more significant employee reductions (more than 25%) and wages, or for businesses that may have more complex situations. The application is more complex than that of its peer applications (Forms 3508S and 3508EZ) and it requires multiple calculations and documents to be submitted and sent to the SBA.
PPP Loan Forgiveness Application eligibility information:
All businesses and PPP loan situations can apply using the PPP Loan Forgiveness Application however, it is more complex. We suggest that you first make sure your business does not qualify for the more streamlined PPP forgiveness application forms 3508S or 3508EZ.
You can find more details and instruction about the Paycheck Protection Program Loan Forgiveness Application on the SBA's website.
Bank of the West Forgiveness Assistant Form (Required)
We understand that the standard application is more complex and requires multiple calculations. Don't worry, if you're a Bank of the West PPP customer, we've created the Forgiveness Assistant Form to help you through the standard forgiveness application. The Forgiveness Assistant Form is required if you applying for PPP loan forgiveness with us and you are not eligible to complete Application Forms 3508S or 3508EZ. You will need to download the Forgiveness Assistant Form, complete it, save it and then upload it into our online portal when prompted.
Learn more about the Forgiveness Assistant Form
Required documents for PPP Loan Forgiveness Application (standard forgiveness application)
Depending on your situation, there will be multiple documents to submit and upload in our online portal.
You can find a helpful list of documents in the section below.
It's important to note that the SBA requires borrowers to retain multiple document types, depending your situation, for 6 years after the loan has been forgiven or paid in full, such as proof you did or did not reduce employees/wages, proof your business was unable to operate during the covered periods, etc.