Last Updated: August 11, 2020 6:00 p.m. ET

 

PPP Loan Forgiveness Details

We continue to incorporate the latest SBA guidance and plan to start accepting online PPP Forgiveness requests in the coming weeks. We’ll email you when you can begin to request Forgiveness.

Please check here for updates and visit SBA.gov and Treasury.gov for program details.

The SBA Loan Forgiveness Form 3508EZ Instructions clarify who can use the simpler form to request Forgiveness. You will find summarized criteria below; please go to this link 3508EZ for complete details.

  • Are self-employed, an independent contractor, or a sole proprietor and had no employees when you applied for the loan and did not include employee salaries in payroll costs OR
  • Did not reduce by more than 25% the salary or hourly wages of any employee earning $100,000 or less annually during the Covered Period or Alternative Payroll Covered Period -- compared to January 1, 2020 through March 31, 2020 -- and did not reduce the number of employees or hours of your employees OR
  • Did not reduce by more than 25% the salary or hourly wages of any employee earning $100,000 or less annually during the Covered Period or Alternative Payroll Covered Period -- compared to January 1, 2020 through March 31, 2020 -- and did experience reductions in business activity as a result of health directives related to COVID-19. Business activity reductions could have resulted directly or indirectly from compliance with COVID Requirements or Guidance from federal, state or local government shutdown orders that prohibited you from maintaining the same Full Time Equivalency (FTE) employee levels.

Borrowers that don’t meet Form 3508EZ criteria can use the updated SBA Loan Forgiveness Form 3508.





  • Here are additional updates from the SBA that apply to both PPP Loan Forgiveness Application Forms: 
    • You now have a 24-week Covered Period to spend loan funds starting the date loan funds were deposited into your Chase business checking account. If you were funded prior to June 5, you can still use the 8-week period and Alternative Payroll Covered Period.
    • You must use at least 60% of funds for eligible payroll costs to qualify for full Loan Forgiveness.
    • You can use up to 40% of funds for eligible non-payroll costs.
    • Payments are generally deferred until 10 months after your 8-week or 24-week Covered Period ends.
      • If you apply for Forgiveness in the deferral period, you won’t have to start making payments on unforgiven amounts until the SBA provides a decision on your request or remits funds. 
      • If you do not apply for Forgiveness within the deferral period, you must begin making payments after your deferral period.

 

Before you request Loan Forgiveness, we recommend you do the following: 



We’ll email you when you can request Loan Forgiveness through Chase.  Please keep in mind:

  • Forgiveness is not automatic, you must request it through Chase.
  • Make sure you have a Chase Business Online profile. If you don’t have one, click here.
  • You should request Forgiveness only after you have spent all the funds that are eligible for Forgiveness.  
  • We will pre-fill your standard business information on your Forgiveness request as well as:
    • SBA PPP Loan Number
    • Chase PPP Loan Number
    • Funded PPP Loan Amount
    • PPP Loan Disbursement Date
  • You will need to certify and document that you used the loan funds for SBA-eligible purposes.
  • You’ll be able to check your Forgiveness status online after you submit your request.
  • Once the SBA makes a decision, we’ll email you.

It is your obligation, as the borrower, to understand the SBA's rules. Other eligibility requirements may apply.