CARES Act: SBA Issued Paycheck Protection Program (PPP) Loan Forgiveness Factsheet for Borrowers | Practical Law

CARES Act: SBA Issued Paycheck Protection Program (PPP) Loan Forgiveness Factsheet for Borrowers | Practical Law

The Small Business Administration (SBA) issued a factsheet (Factsheet) that provides a checklist for borrowers on how to apply for forgiveness of their Paycheck Protection Program (PPP) loans. The Factsheet is a simple checklist of steps to follow for contacting the PPP lender and submitting the correct loan forgiveness application; documentation to be submitted; steps for submitting forms and documentation to the PPP lender; and communications with the PPP lender.

CARES Act: SBA Issued Paycheck Protection Program (PPP) Loan Forgiveness Factsheet for Borrowers

by Practical Law Finance
Published on 30 Oct 2020 • USA (National/Federal)
The Small Business Administration (SBA) issued a factsheet (Factsheet) that provides a checklist for borrowers on how to apply for forgiveness of their Paycheck Protection Program (PPP) loans. The Factsheet is a simple checklist of steps to follow for contacting the PPP lender and submitting the correct loan forgiveness application; documentation to be submitted; steps for submitting forms and documentation to the PPP lender; and communications with the PPP lender.
On March 30, 2020, the US government passed the CARES Act in response to the COVID-19 crisis. Under the CARES Act, the Small Business Administration (SBA) is offering loans under the Paycheck Protection Program (PPP). On April 2, 2020, the SBA issued an interim final rule (Initial Rule) outlining the key provisions for implementing the PPP. Subsequently, the SBA has issued additional interim final rules (see Practice Note, Road Map to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act): Paycheck Protection Program (PPP)).
On October 30, 2020, the SBA issued a factsheet (Factsheet) that provides a simple checklist for borrowers on how to apply for forgiveness of their PPP loans.
The Factsheet covers the following information and steps to help users:
  • Understand when the PPP loan is eligible for forgiveness, the timing for borrowers to apply for loan forgiveness, and when PPP loan deferral ceases.
  • Contact the borrower's PPP lender and complete the correct form (either SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or a PPP lender equivalent).
  • Compile required documentation to evidence payroll and non-payroll expenses.
  • Submit the forgiveness application and documentation to the PPP lender.
  • Continue to communicate with the borrower's PPP lender throughout the process, including a PPP loan review by the SBA.

More Information

For summaries of the SBA PPP, see:
For additional guidance from the Treasury Department, see: