PPP Loan Forgiveness

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The Paycheck Protection Program (PPP) is a federal relief program that offers forgiveness for certain eligible expenses when program conditions are met. PPP loan recipients are responsible for tracking and documenting eligible expenses over the forgiveness period from when loan funds are received and for submitting a request for PPP loan forgiveness at the end of the forgiveness period.
Information regarding PPP loan forgiveness found on this page is based on that which has been released by the U.S. Treasury Department and SBA. PPP loan recipients should stay informed of the latest information released by these agencies using the resources below.
Update: On October 9, the SBA released a streamlined application forgiveness application form for loans of $50,000 and under. Links to this application appear under PPP resources. Select “Streamlined 3508S Process” in the Loan Forgiveness Portal to utilize this form which requires fewer calculations than other application forms.
 

Please note that future information released by these agencies may impact the forgiveness guidelines below and all participating banks, including Cape Cod 5, are required to follow applicable regulations to determine the loan amount that is forgivable.

 

Getting Started

 First-time Login Tutorial | Loan Forgiveness Portal 

Frequently Asked Questions | PPP Resources 

 

Loan Forgiveness Application Guide

Follow each of the items in the steps below to prepare and apply for PPP Loan Forgiveness

Step 1: During the 24-week period after you receive your loan funds

Review relevant guidance from the SBA and Treasury 
As a PPP borrower, you are responsible for understanding the rules and guidance relative to the program issued by the SBA and Treasury. Links to these resources can be found in the Paycheck Protection Program Resources section on this page.
Watch the Cape Cod 5 Forgiveness Overview Webinar
Click here     to view this educational webinar with an overview of the process and answers to frequently asked questions.
Utilize your loan funds according to the program’s guidelines and retain documentation 
Payroll costs: Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation. Include only payroll costs for employees whose principal place of residence is in the United States and for each individual employee, the total amount of cash compensation eligible for forgiveness many not exceed an annual salary of $100,000.
Non-payroll costs: These include (a) covered mortgage obligations: payments of mortgage interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020; (b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 and (c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020.
Continue to monitor new legislative developments and revised guidance
Throughout the PPP process, Congress and the agencies running the program have continued to revise the program and published updated guidance. These changes may impact your loan and forgiveness amount, and, as a PPP borrower, you are responsible for monitoring these developments. Links to these resources can be found in the Paycheck Protection Program Resources section on this page.

Step 2: After the completion of the 24-week period from the date you receive your loan

Confirm readiness to apply
The SBA has stated that you may apply for forgiveness at any time (within 10 months of the last date of your covered or forgiveness period). We encourage borrowers to review the guidelines below when deciding when to apply: 
  • Loans of $150,000 or less – Congress has proposed legislation to potentially simplify the forgiveness process for loans under $150,000, so borrowers with loans under $150,000 may wish to delay their application pending the outcome of these proposals (which may not be known until the end of September). Please note that all borrowers are required to follow the requirements of the program and maintain documentation of applicable expenses.   
  • Availability of documentation – Prior to beginning your forgiveness application, please gather all your supporting documentation, as it will be required to submit your application for review. Some of these documents may not be available immediately, and having full documentation available prior to starting your digital application is recommended.   
  • Use of funds – To maximize loan forgiveness, we recommend that you wait until the end of the covered period or when you have used all the funds you expect to use on expenses eligible for forgiveness.  
  • Staffing levels – If you will need to prove you have maintained or reinstated staffing levels, you will need to apply after the date of your covered period or date of full reinstated staffing. Please note that this does not apply to businesses that had COVID–related business restrictions due to compliance with governmental guidance.   
Gather your documentation
Current documentation requirements include: verification of employees on payroll and pay rates, payment receipts, cancelled checks or other documents for non-payroll expenses (such as mortgage, lease and utility expenses).
Review SBA applications and instructions
Review the SBA loan applications to familiarize yourself with the information you will need to apply for forgiveness. 
Form 3508S: If your loan is $50,000 and under, please use the streamlined S Form.
Form 3508EZ: If you fit one of the following criteria, you may use the streamlined EZ Form:
  1. Self-employed with no employees; OR
  2. Did not reduce annual salary or hourly wages of any employees by more than 25% during the covered period and did not reduce the number of employees or average paid hours of employees between 1/1/2020 and end of covered period; OR
  3. Did not reduce annual salary or hourly wages of any employees by more than 25% during the covered period and unable to operate during the covered period at the same level of business activity due to compliance with Covid-19 protocols.
Please see the PPP EZ forgiveness application instructions below for full details.
Form 3508: All others who are not qualified for either of the above should use the full forgiveness application.
Apply for loan forgiveness
  • Gather the information needed to establish your application login for the forgiveness portal – the TIN from your PPP application, your loan amount and the SBA loan number (located on your loan closing documents). View a short video on how to locate your loan and set up your log-in and password here.
  • Once you log in to the portal, you may select your forgiveness application: Streamlined 3508S (for loans $50,000 and under), Streamlined 3508EZ or Full Forgiveness Application 3508.
  • Utilize the “Ask an Accountant” feature in the portal – if you have a question on your application, this feature allows you to ask an accountant with a 24-hour email response time Monday – Friday.  
Understand the loan forgiveness process and timeline
  • Please note that the forgiveness process involves several steps and it can take up to five (5) months after submission of your completed forgiveness application to Cape Cod 5 to receive a final determination on loan forgiveness from the SBA. As long as you apply within 10 months of the end of your forgiveness or covered period, you will have to make no loan payments while awaiting the SBA decision (interest will continue to accrue on the entire loan amount. Accrued interest will be forgiven on the portion of the loan that is forgiven).  
  • Once you submit your completed forgiveness application to Cape Cod 5, we will review your application and supporting documents and then send the authorized signer a link to sign the forgiveness application via DocuSign (this review can take up to 60 days). After the initial review, if there are questions or follow-up information is needed, you will receive a message in the secure portal.   
  • Once the initial review is completed, the package is electronically signed and returned by the borrower, the authorized signer will be sent a link to electronically sign the forgiveness application. Then, Cape Cod 5 will submit your loan application to the SBA. The SBA will have 90 days to review and notify Cape Cod 5 of their response.  
  • Cape Cod 5 will then notify you when we hear from the SBA on the loan forgiveness decision (and the due date for the first payment on any unforgiven portion of the loan amount). 

View Loan Forgiveness Portal First-time Login Video Tutorial

 

Cape Cod 5 Loan Forgiveness Portal

(Recommend using the Google Chrome Internet Browser) 
 

LOG IN TO THE FORGIVENESS PORTAL

Frequently Asked Questions 

Loan Forgiveness

Do I need to apply for loan forgiveness?
Yes. All PPP loan recipients must apply for potential loan forgiveness in order to potentially have all or a portion of the loan forgiven. Forgiveness means that you will not have responsibility to pay the forgiven portion of the loan (including principal and accrued interest). If you do not apply for forgiveness or a portion of the loan is not forgiven, you will be responsible for making payments on that loan amount (principal plus accrued interest) according to the loan terms on your loan note.  
I have no employees. Do I still need to apply for loan forgiveness?
Yes. Sole proprietors, independent contractors and self-employed individuals 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 in the Borrower Application Form automatically qualify to use the EZ process and should select the first option to qualify for the EZ Process in the loan forgiveness portal.
Source: Forgiveness FAQ’s as of August 11, 2020 https://www.sba.gov/sites/default/files/2020-08/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28August%2011%2C%202020%29-508.pdf
 
When does my covered period or forgiveness period start?
Your 24-week (168-day) covered or forgiveness period begins on the date you received your PPP loan funds. If your PPP loan was approved by the SBA prior to June 5, 2020, you may elect to use an 8-week (56-day) covered period or a 24-week (168-day) covered period. In no event may the covered period extend beyond December 31, 2020.

Source: Loan Forgiveness Application Instructions for Borrowers
When can I apply for loan forgiveness?
The SBA has stated that you may apply for forgiveness at any time (within 10 months of the last date of your covered or forgiveness period). We encourage borrowers to review the guidelines below when deciding when to apply:
  • Loans of $150,000 or less – Congress has proposed legislation to potentially simplify the forgiveness process for loans under $150,000, so borrowers with loans under $150,000 may wish to delay their application pending the outcome of these proposals (which may not be known until the end of September).  Please note that all borrowers are required to follow the requirements of the program and maintain documentation of applicable expenses.  
  • Availability of documentation – Prior to beginning your forgiveness application, please gather all your supporting documentation, as it will be required to submit your application for review.  Some of these documents may not be available immediately, and having full documentation available prior to starting digital application is recommended.  
  • Use of funds – To maximize loan forgiveness, we recommend that you wait until the end of the covered period or when you have used all the funds you expect to use on expenses eligible for forgiveness to apply. 
  • Staffing levels – If you will need to prove you have maintained or reinstated staffing levels, you will need to apply after the date of your covered period or date of full reinstated staffing.  Please note that this does not apply to businesses that had COVID-related business restrictions due to compliance with governmental guidance.  
Cape Cod 5 will begin accepting forgiveness applications digitally through our website on August 18, 2020. Cape Cod 5 will not accept paper forgiveness applications. All PPP loan recipients have up to 10 months after the receipt of your PPP loan funds to apply for forgiveness, and you will not have to make loan payments during that time.
If I elect a 24-week covered or forgiveness period and use my funds prior to the end of 24 weeks, can I apply early?
Yes, the SBA has stated that a borrower can apply prior to the end of the 24-weeks. Please note that if you apply early, you will need to pro-rate the amount of non-owner employee and owner employee compensation according to the number weeks used in the covered period as per the below example:
If using the 24 week covered period, the maximum amount of compensation eligible for forgiveness for a non-owner employee is $46,154 ($100,000/52 weeks x 24 weeks). If a shorter period is used, for example, 14 weeks, then the maximum amount of compensation eligible for forgiveness is $26,923 ($100,000/52 weeks x 14 weeks). For an owner-employee, if using 24 weeks, the maximum amount of compensation eligible for forgiveness is $20,833. This amount would need to be pro-rated as well, as follows. If applying after 14 weeks, the maximum amount of compensation eligible for an owner-employee is $12,152 ($20,833/24 weeks x 14 weeks). 

 

Source: American Institute of CPAs, IFR Part III.3c of the First Loan Forgiveness Rule Pg.4 and the Checklist for Using SBA Form 3508EZ
Which forgiveness application should I use?
When you log into the Forgiveness portal, you will need to select a forgiveness application to fill out. Please see additional information on the criteria for each application:
Form 3508S: If your loan is $50,000 and under, please use the streamlined S Form.
Form 3508EZ: If you fit one of the following criteria, you may use the streamlined EZ Form:
  1. Self-employed with no employees; OR
  2. Did not reduce annual salary or hourly wages of any employees by more than 25% during the covered period and did not reduce the number of employees or average paid hours of employees between 1/1/2020 and end of covered period; OR
  3. Did not reduce annual salary or hourly wages of any employees by more than 25% during the covered period and unable to operate during the covered period at the same level of business activity due to compliance with Covid-19 protocols.
Please see the PPP EZ forgiveness application instructions below for full details.
Form 3508: All others who are not qualified for either of the above should use the full forgiveness application.
On the application it asks for Employees at the time of Loan Application and Employees at the time of Forgiveness Application. What do I put on these lines? Total employees? Average FTE’s?
On questions regarding the number of employees, you should input the total number of employees, including both full-time and part-time, and not the average number of FTE’s. These lines are being used by the SBA for informational purposes only and do not impact the forgiveness calculation.
If forgivable payroll costs cover the entire loan amount, do I have to include amounts for business mortgage interest, rent or utilities?
No, there is no requirement to include amounts for the other non-payroll costs if forgivable payroll costs cover the entire loan amount.
If I pay payroll monthly to some employees and weekly to others, can I elect the alternative payroll covered period?
No, all of the borrower’s payroll must be paid bi-weekly or more frequently in order to elect the alternative payroll covered period.
Should my business entity’s application be completed by the same authorized representative who submitted the PPP application?
An authorized signer will be required to sign the forgiveness application. Only one signer is required for the forgiveness application.    
Do I have to make payments on my loan in advance of submitting my forgiveness application or while I wait for a decision on my forgiveness application?
As long as you submit your application within 10 months of the completion of your covered or forgiveness period (See “When does my covered period or forgiveness period start?”), you will not be required to make any payments until the forgiveness amount decision is received by Cape Cod 5 from the SBA. Interest will continue to accrue on the loan and will be forgiven for any portion of the loan that is forgiven. You will be responsible for paying the accrued interest on any amount of the loan that is not forgiven.  
 
Source: Forgiveness FAQ’s as of August 11, 2020 https://www.sba.gov/sites/default/files/2020-08/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28August%2011%2C%202020%29-508.pdf
What can I expect after I’ve submitted my forgiveness application to Cape Cod 5?
Please note that the forgiveness process involves several steps and it can take up to 5 months after submission of your completed forgiveness application to Cape Cod 5 to receive a final determination on loan forgiveness from the SBA. As long as you apply within 10 months of the end of your forgiveness or covered period, you will have to make no loan payments while awaiting the SBA decision (interest will continue to accrue).  
  • Once you submit your forgiveness application to us, Cape Cod 5 will review your application and supporting documents and then send the authorized signer a link to sign the forgiveness application (this review can take up to 60 days).  
  • After the initial review, if there are questions or follow-up information is needed, you will receive a message in the secure portal.  
  • After the authorized signer signs the application, Cape Cod 5 will submit your loan application to the SBA. The SBA will have 90 days to review and notify Cape Cod 5 of their response. Cape Cod 5 will then notify you when we hear from SBA on the loan forgiveness decision (and the due date for the first payment on any unforgiven portion of the loan amount).
What resources are available to help me with my forgiveness application?
PPP borrowers are responsible for reviewing, understanding and complying with the guidance available from the SBA and Treasury. Additionally, you may want to consult with your CPA regarding your application. If you do not have a CPA and would like individual support, Cape Cod 5 has a list of local and regional CPA firms who offer services to assist with PPP loan forgiveness (see CPA Resources).  
Should you have a procedural question when completing your forgiveness application, you also may use the “Ask an Accountant” feature in the portal to ask a question of an accountant (See “What is the Ask an Accountant” feature below).  
Please note that responses will be received within 24 hours Monday through Friday and sensitive information (such as account numbers) should not be sent via this messaging application.  
May I apply for an additional loan?
No. Only one PPP loan per business is permitted.  
I received both an Economic Injury Disaster Loan (EIDL) advance and a PPP loan. How will this impact my forgiveness?
If you received an EIDL advance, the SBA will reduce your loan forgiveness amount by the amount of the EIDL advance. This would result your PPP loan not being forgiven in full and a balance in the amount to of the EIDL advance to be repaid (assuming the loan otherwise qualified for full forgiveness). Once Cape Cod 5 receives the decision on loan forgiveness from the SBA, you will be notified of the decision and the date that your first payment is due.
 
Source: Forgiveness FAQ’s as of August 11, 2020 https://www.sba.gov/sites/default/files/2020-08/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28August%2011%2C%202020%29-508.pdf

Loan Forgiveness Portal

How do I start my forgiveness application?
If you are ready to apply for forgiveness and have met the criteria for application timing (Please see “When can I apply for Forgiveness”), and have all your documentation and calculations completed, please start your forgiveness application by accessing the Forgiveness Portal. Please note that you will need to locate your loan and establish an account during your first time log-in.  
To log into the Forgiveness Portal, you will need the TIN from your PPP application, your loan amount and the SBA loan number (located on your loan closing documents). Click here to access a video illustrating the log-in process for the Forgiveness Portal. 
Will I need to establish a new account for the forgiveness portal (separate from the application portal)?
Yes. As part of the Forgiveness Portal process, you will locate your loan and establish a new email and log-in.  
To log into the Forgiveness Portal, you will need the TIN from your PPP application, your loan amount and the SBA loan number (located on your loan closing documents).
What internet browser should I use to access the Forgiveness Portal?
Please note that Google Chrome is the recommended browser for accessing the forgiveness portal.  
 
What is the “Ask an Accountant” feature?
The Ask an Accountant feature allows you to ask questions regarding your forgiveness application to be answered by a CPA firm. You may submit questions via the button in the portal (you must fill in your email and question and may optionally fill in your name). Responses to questions will be sent via email within 24-hours Monday – Friday. Please do not send sensitive information (such as account numbers) via this feature. Advice offered through this feature is limited to text questions and does not include the review of any documentation.  
 
Please note that this is not considered legal advice and any actions pertaining to the forgiveness application remain the responsibility of the borrower.  
Do I need fill out the Forgiveness application (Form 3508 or 3508EZ) provided by the SBA in paper format?
No, please do not complete a paper application. Cape Cod 5’s digital application process will assist you in providing the information needed for the SBA. Cape Cod 5 will not accept paper application submissions.
What if I don’t have the pieces of information needed to log in to Forgiveness Portal?
Your SBA loan number and loan amount can be found on your loan closing documents. The TIN used for your loan can be found on your PPP loan application.  
For assistance in locating your SBA loan number and loan amount, please call us at 888-225-4636 and select the option for Paycheck Protection Program Information.  
Please note that our Banking Centers will be unable to assist you in this process.

 
What email address will portal communications be delivered from?
Communications sent via the Forgiveness Portal (including updates on your application status and messages from the Cape Cod 5 lender reviewing your application) will be sent from SBA Forgiveness Queue with an email of [email protected]. Please add this email address to your trusted senders or address book to ensure you receive time-sensitive communications. 
I am having trouble locating my loan and creating an account.
Please call us at 888-225-4636 and select the option for Paycheck Protection Program Information.  
Please note that our Banking Centers will be unable to assist you in this process.
What if I realize that I need to make a correction after submitting my forgiveness application?
Should you need to update or change anything on your forgiveness application after submission, please submit a message via the portal. Cape Cod 5 will need to unlock your forgiveness application in order for you to make edits via the portal.  
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Paycheck Protection Program Resources

As a PPP loan recipient, you should stay informed of the latest information released by the SBA and US Treasury Department.
 
Full Forgiveness Application (Form 3508):
Streamlined EZ Form (Form 3508 EZ):
Streamlined S Form (Form 3508S):

 

PPP Loan Forgiveness Webinar Resources

View the August 13, 2020 webinar recording in its entirety or download the presentation slides.
 

 

CPA Resources

Local and regional CPA resources for customers who would like individual support:
 

PPP Loan Forgiveness - We're here to help
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