SBA PPP Loan Forgiveness

What we know about PPP loan forgiveness

If your loan amount is $50,000 or less and you do not meet certain SBA affiliation rules1, you are eligible to use Form 3508S, a simpler forgiveness application for PPP loans. Enterprise will begin accepting your Form 3508 or 3508EZ PPP loan forgiveness application on December 1, 2020. 

Enterprise began accepting Form 3508 or 3508EZ PPP loan forgiveness applications on October 27, 2020.

Each PPP borrower will receive an email from us with a link to their forgiveness application. Upon receipt of a complete application, Enterprise has 60 days to review your application and supporting documentation and make a loan forgiveness recommendation to the SBA. We’ll contact you if we need additional information. We will notify you when we submit your loan forgiveness application to the SBA. The SBA will process your application within 90 days of our recommendation and notify Enterprise of its decision.

The SBA has the right to review any loan at any time. We will notify you within 5 days if the SBA reviews your loan and requests additional information. Otherwise, we will notify you when we receive the SBA’s final determination of forgiveness.
 
To help you prepare to submit forgiveness, follow these pre-application steps:

  • Step 1 - Determine which forgiveness applications you will submit. There are three forgiveness applications: Form 3508S, Form 3508EZ and Form 3508. 
    • The Form 3508S may be used for PPP loans in the amount of $50,000 or less, as long as certain SBA affiliation rules do not apply. For review purposes only, a link to the new Form 3508S is here and the instructions are here.
    • The Form 3508EZ requires fewer calculations and less documentation for eligible borrowers. Borrowers who use Form 3508 (long form) are also required to submit a Schedule A. Prior to beginning your application, review these requirements to see if you are eligible to use the short forgiveness form - Form 3508EZ Eligibility Criteria.
  • Step 2 - Gather and prepare your supporting documents. Supporting documents will be uploaded to our forgiveness platform. The platform will accept the following file types: PDF, JPG, JPEG, Word (doc or docx), Excel (xls or xlsx) and CSV.
  • Step 3 - Determine who will sign the forgiveness application. The forgiveness application will be electronically signed and certified. An authorized signer of the company per the organizational documents must sign the forgiveness application. The individual who signs the forgiveness application can be different than the preparer.

 
You should gather the following documents verifying eligible expenses, including the number of full-time equivalent employees on your payroll and their pay rates for the time frame used to verify you met the staffing and pay requirements:
 
Payroll Expenses - Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following: 

  • 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.

 
Nonpayroll Expenses - Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period. (Remember: this only applies if you included nonpayroll expenses in the amount for which you are trying to seek forgiveness.)
 

  • Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments. 
  • Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. 
  • Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments
     

For more information on the loan forgiveness process visit here PPP FAQ page.