SBA Paycheck Protection Program Loan Forgiveness Information

Thank you for the opportunity to assist you with your PPP loan.

Under the Paycheck Protection Program (“PPP”) your loan may be forgiven in whole or part by the Small Business Administration (“SBA”) . The unforgiven portion, if any, will continue as a loan by CSB under your note with us. The portion of your PPP loan that is forgiven will depend on how you spend the loan proceeds and the specific facts you provide in your loan forgiveness application. 

The recently signed COVID-19 relief bill (the “Economic Aid Act”) provides for a simplified PPP Loan Forgiveness Application for PPP loans of $150,000 or less. This one-page application and instructions (Form 3508S) was recently released by the SBA. In addition, the SBA revised its forgiveness applications on Forms 3508EZ and 3508.

Given the new changes to PPP forgiveness provided in the Economic Aid Act, all PPP borrowers with loans under $150,000 should utilize the SBA's new streamlined application on Form 3508S. If you have already filed your forgiveness application and are considering whether to withdraw or place your application on hold, you will need to file a new application for forgiveness.

We encourage you to review the changes to the Economic Aid Act and SBA's related rules to best determine the outcome most favorable to you.


Go directly to SBA Loan Forgiveness application


The following Q&A addresses common questions regarding the forgiveness process; however, these answers are subject to change. These FAQs will be updated as additional information regarding the Economic Aid Act becomes available.


What are the requirements for using the Form 3508S?

You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using this SBA Form 3508S only if the total PPP loan amount you received from your Lender was $150,000 or less.

 

What are the requirements for using the Form 3508EZ?
You (the Borrower) can apply for forgiveness of your PPP loan using SBA Form 3508EZ if your PPP loan is over $150,000 and you meet at least one of the two options below.

OPTION 1

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before Covered Period (for purposes of this statement, "employees means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also ignore reductions in an employee's hours that the Borrower offered to re-store and the employee refused. 


OPTION 2

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 (or, for a PPP loan made after December 27, 2020, requirements established or guidance issued between March 1,2020 and the last day of the Covered Period) by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

 

Who should use the forgiveness application on Form 3508?

If your loan is greater than $150,000 AND you do not meet at least one of the two qualification options outlined in the instructions to Form 3508EZ, then you should use Form 3508.

 

What documentation should you accumulate to support your forgiveness application?

 The instructions to each of the forgiveness application forms outline the required documentation that should be retained and/or submitted with your forgiveness application, as well as the time periods for preserving such documentation.

 

Will CSB prepare our forgiveness application? 

No. Like the initial PPP application, the responsibility for preparing the forgiveness application and making the required certifications lies with the borrower. The bank will review your application and calculations, but it is relying upon the certifications and documentation provided by the borrower in doing so.
 
We recommend that you consult with your accountant, bookkeeping service or legal counsel to assist you as needed.


When do I file my forgiveness application?

You have ten months from the end of your covered period to file your forgiveness application. 

Good record-keeping and a detailed application are the keys to maximizing the amount of your PPP loan which will be forgiven by the SBA. We encourage you to be diligent in keeping track of your staffing levels and your eligible expenditures of your PPP loan proceeds.


Can I review the PPP Forgiveness Application prior to starting the process with CSB? 

Yes. Click Here to visit the SBA ‘s PPP Loan Forgiveness Website.

Start your loan Forgiveness Application


Select the SBA Form below that meets your needs to start your application. Next choose your CSB Relationship Manager, complete your forgiveness application online, and upload the supporting documentation for your application. If you run out of time you can save and pick up where you left off another time.