Get prepared to get your loan forgiven
If your business received a PPP loan, you are likely preparing for your loan forgiveness journey. Here, you’ll find the latest information about PPP forgiveness, helpful tips and a preview of our online application process.
Update for Bank of the West PPP Loan Customers: We have begun to send email invitations to our customers to apply for PPP loan forgiveness based on loan funding date. If your loan was funded in late-Spring or early-Summer 2020, it may take some time to receive your email invitation to apply for forgiveness. If you have any questions, please contact your Relationship Manager.
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.