How and when to apply for loan forgiveness
According to the SBA, 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.
To apply for loan forgiveness:
1. If your PPP loan was handled by Prime Meridian Bank, contact your Relationship Manager who can email you a link to an online portal to initiate the process:
We can also provide you either the SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or the equivalent.
The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. We can provide further guidance on how to submit the application.
2. Compile your documentation:
Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):
- Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees
- Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
- Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount
Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):
- Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements
- Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
- Business utility payments: Copies of invoices and receipts, cancelled checks or account statements
This list of documents required to be submitted to your lender is not all-inclusive.
3. Submit the forgiveness form and documentation to us:
Complete your loan forgiveness application and submit it to us with the required supporting documents and we will let you know whether additional documentation is required.
4. We will keep in touch with you throughout the process:
If SBA undertakes a review of your loan, we will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. We will notify you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.
Please note: Recent legislation eliminated the original requirement to deduct the amount of EIDL Advance you may have received from your PPP loan forgiveness.
Forgiveness forms and instructions
- FAQ About PPP Loan Forgiveness
- PPP Loan Forgiveness Application + Instructions
- PPP EZ Loan Forgiveness Application + Instructions
- PPP 3508S Loan Forgiveness Application + Instructions