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A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
1. Determine if your lender is participating in direct forgiveness through SBA and complete the correct form:
Review the list of lenders participating in direct forgiveness to determine whether you must apply via SBA.
2. Compile your documentation:
SBA Form 3508S does not require borrowers to provide additional documentation to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of the loan review or audit processes.
3. Submit the forgiveness form and documentation to SBA or your PPP lender:
Depending on whether your lender is participating in direct forgiveness, complete your loan forgiveness application and submit it via theSBA direct forgiveness portal or via your lender with the required supporting documents. Your lender may follow up to request additional documentation.
4. Continue to monitor your application for forgiveness:
If SBA undertakes a review of your loan, SBA or your lender will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Your lender is responsible for notifying you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.
Borrowers who need assistance with direct forgiveness can contact SBA at the dedicated forgiveness call center: 877-552-2692. The call center is open Monday – Friday, 8 a.m. - 8 p.m. ET.