Online Forgiveness Application
To receive PPP loan forgiveness, Evergreen Credit Union borrowers must submit online a completed loan forgiveness application (3508S, 3508EZ or 3508) and any required documentation to the PPP lender. Paper applications will not be accepted.
Which PPP Loan Forgiveness Application do I use?
Form 3508S (For Loans $50,000 or less)
If your PPP loan amount was less than $50,000, you can use the simplified forgiveness Form 3508S.
Form 3508EZ (For Loans over $50,000)
A borrower is eligible to use Form 3508EZ if the borrower can satisfy at least one of the following:
- Self-employed individual, independent contractor, or sole proprietor 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.
- Did not reduce the salaries or wages of their employees by more than 25 percent and did not reduce the number or hours of their employees.
- Was unable to operate at the same level of business activity as before February 15, 2020 due to compliance with requirements or guidance related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25 percent.
Form 3508EZ eliminates the need to complete Schedule A as well as Schedule A Worksheet.
Form 3508 (For Loans over $50,000 that don’t qualify for Form 3508EZ)
If you are unable to meet the requirements for Form 3508S or 3508EZ, you must complete the longer application, Form 3508 together with Schedule A.
What do I need to document?
- For Schedule C and Schedule F filers, must provide a copy of the schedule filed for 2019
- Bank account statements or 3rd-party payroll reports documenting compensation paid to employees
- Tax forms (or equivalent 3rd-party payroll reports) for periods that overlap with either the Covered Period or the Alternative Payroll Covered Period:
- Payroll tax filings reports to the IRS – typically Form 941; and
- State quarterly business and individual employee wage reports along with unemployment insurance tax filings
- Payment receipts, cancelled checks or account statements documenting the amount of employer contributions to employee health insurance and retirement plans
If you've used loan proceeds for rent, interest payments or utilities, you'll need:
- Business rent or lease payments – Copy of current lease agreement along with receipts or cancelled checks verifying eligible payments from the Covered Period.
- 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.
- Business interest payments – Copy of loan statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments; unsecured debt is not eligible.
If the amount of eligible payroll expenses meets or exceeds your loan amount, you do not need to provide any additional non-payroll expense documentation.
The Forgiveness Application must reflect the full covered period (either 8 weeks or 24 weeks) for your PPP Loan, even if you are applying before the covered period expires.
- PPP Loans funded prior to June 5, 2020 – Choosing the 24-week Covered Period may be advantageous for Borrowers as it allows 16 additional weeks of payroll expenses and potentially eliminating the need to document eligible nonpayroll expenses.
- For self-employed individuals without additional employees on payroll – Choosing the 24-week Covered Period will allow for full forgiveness of the loan amount (2.5 times average monthly payroll as determined by Line 31 of Schedule C or F).
- Remember, salary or wage compensation is capped at $100,000 per employee/individual.
- Borrowers who received an EIDL Advance (not an EIDL Loan) will have their forgiveness amount reduced but by the amount of the Advance.
- If a borrower fails to apply for forgiveness within 10 months after the covered period ends, “the PPP loan is no longer deferred, and the borrower must begin paying principal and interest.”
Apply for Loan Forgiveness
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- Log into the PPP Loan Portal [or Sign-Up if you’ve not created an account] using the email you provided on your original PPP Application. Need help? Read our step-by-step guide.
- Upload your supporting documentation. We must have the supporting documentation in order to process your application.
When will I find out if my loan is forgiven?
Evergreen will submit the forgiveness application to the SBA no later than 60 days from receiving of a complete application package from you. The SBA will, subject to review of Evergreen’s submission, will remit and inform Evergreen of the appropriate forgiveness amount, plus any interest accrued, no later than 90 days from Evergreen’s submission. The SBA will deduct any applicable EIDL Advance amount from the forgiveness amount remitted. Evergreen will inform the Borrower of any decision after receiving SBA confirmation.