PPP Loan Forgiveness Application Steps

PLEASE read this entire page before you begin your PPP loan forgiveness application!

The application must be completed, signed and submitted to Enterprise. The email contained a link to your forgiveness application. The application contains pre-filled portions, making the process more efficient for you. You’ll use the system to electronically complete, sign and submit your forgiveness application and supporting documents. If you cannot process your forgiveness application electronically, please notify us of your need for a paper application by sending an email to [email protected]

The forgiveness application process contains three steps. Detailed instructions for each step are below.

  • Step 1 - Determine who should complete the application and initiate the application process.
  • Step 2 - Determine which form you should use, complete the application and upload supporting documents.
  • Step 3 - Determine who should sign the application and e-sign the application.

If we need more information, you will receive an email from us with a link to your application. Additional requested information should be submitted to us via the platform. If you submitted a paper application, we’ll contact you to discuss how to send back the additional information. 

Follow these steps when you’re ready to begin!

Step 1 - Determine who should complete the application and initiate the application process. 

The application can be completed by the borrower or his / her designee. The email with the link can be forwarded. In Step 1 of the process, a PIN number will be created. Only one PIN should be created for the application. Depending on who creates the PIN, it may be necessary to share it with the application preparer.

  • Click on the Client Portal Link provided to you by Enterprise.
  • Create a PIN that you (or your designee) will need to access your forgiveness application prior to submitting it for processing. Don’t forget your PIN number. The PIN must be between 6-12 characters. It can include numbers, letters and special characters.
Step 2 - Determine which form you should use, complete the application and upload supporting documents.

For loans greater than $50,000, there are two forgiveness forms, Form 3508 and Form 3508EZ. Prior to beginning your application, review the requirements to see if you are eligible to use the EZ forgiveness form. The EZ application requires fewer calculations and less documentation for eligible borrowers. Borrowers who use Form 3508 are also required to submit a Schedule A. Click here to see the criteria for each forgiveness application.

HINT: If you would like more information about any fields in the app, utilize the tooltip icon by clicking directly on the question mark icon beside the corresponding field.

Click “SAVE” at the end of each section.

  1. Review the criteria on the last page of this document to determine if you are eligible to use Form 3508EZ. This criteria is also at the top of the application page in the platform. If you are eligible, click CHECK YOUR EZ FORM ELIGIBILITY. If you are not eligible for Form 3508EZ, skip to 2. 
    a.  Check the box beside any of the eligibility options that correspond to your situation.
    b.  Click Save. The system should automatically change to the EZ Form. If the system doesn’t change to the EZ Form, click “Form 3508EZ” under Save.
  2. Complete the Business Information Section
    a.  Verify the information in the grayed out fields. If anything needs to be corrected, send an email to [email protected].
    b.  Required - Select Yes or No if you would like to provide optional demographic information about your principals.
    i.  If Yes is selected, a new section will open that will allow you to identify for each principal.
    c.  Under Employment Information, complete the required fields.
    d.  If the loan was disbursed before June 5, choose which duration you would like to use for your covered period (8 weeks or 24 weeks). Loans disbursed after June 5 will default to 24 weeks.
    e.  In the Payroll Information section, select the frequency with which payroll is paid to employees.
    f.  Select Yes or No if you are using an Alternative Payroll Covered Period.
    i.  If Yes is selected, enter the day of the first pay period following the PPP Loan Disbursement Date.
  3. Complete the Loan Information Section
    a.  If applicable, enter EIDL Advance amount and Application Number - Do not enter the EIDL loan amount, enter ONLY the EIDL advance amount. As a reminder, EIDL advances were a maximum of $10,000. If you don’t know your EIDL Application Number, please contact the SBA at 800-659-2955. We don’t have access to any EIDL loan information.
    i.  As a reminder, per current SBA regulations, EIDL Advances are not forgivable.
    b.  If applicable, check the box “Check if Borrower (together with affiliates, if applicable) received PPP Loans in excess of 2 Million”. 
  4. Complete Owner Compensation Section (if applicable) - See Tips for completing the forgiveness application.
    a.  Enter 2019 and Amount Paid.
    b.  Upload Documents. 
    i.  2019 - You must submit backup for 2019 amounts. This may be a 2019 Schedule C or other documentation.
    ii.  2020 - You must also provide backup for the 2020 Covered Period if it is not included in the Employee Compensation documentation.
  5. Complete Employee Compensation (Form 3508EZ only) - See Tips for completing the forgiveness application.
    a.  Enter relevant employee compensation information.
    b.  Upload Documents 
    i.  Click the upload documents button.
    ii.  Check the boxes beside the field you would like to relate to each document to.
    iii.  Drag and drop file or click to upload.
    iv.  Click upload at the bottom of the page.
    v.  Repeat this process for each document.
  6. Complete Schedule A (Form 3508 only)  - There are two options for completing Schedule A: 
    a.  If calculations have already been made using a third-party payroll provider or other methods, numbers can be typed directly into the corresponding fields on Schedule A without the need for the Excel worksheet.  
    OR 
    b.  Use the Excel worksheet - Download, complete and upload the Excel worksheet using instructions provided on the worksheet.
    c.  Upload Documents. Note: The worksheet is not considered supporting documentation. You must submit backup for the data entered in the worksheet.
    i.  Click the upload documents button.
    ii.  Check the boxes beside the field you would like to relate to each document to.
    iii.  Drag and drop file or click to upload.
    iv.  Click upload at the bottom of the page.
    v.  Repeat this process for each document.
  7. Complete the FTE Reductions Section (Form 3508 only).
    a.  Review information uploaded from the Schedule A worksheet.
    b.  Upload Relevant Documents (if applicable).
  8. Complete Nonpayroll Costs Section.
    a.  If you meet the requirements for forgiveness with payroll only, you may not need to enter nonpayroll costs. Please contact your attorney or accountant to obtain advice with respect to this matter. 
    b.  Enter any relevant nonpayroll line items in the table. 
    c.  If you entered any nonpayroll costs, you must upload documents to support the costs in this section.
    i.  You must provide proof of both the cost (invoice, lease agreement, utility bill, etc.) and the cleared payment (cancelled check, bank statement)
  9. Review the Calculate Forgiveness Section.
Step 3 - Determine who should sign the application and e-sign the application.

An authorized signer of the company per the organizational documents must sign the forgiveness application. Generally, the application should be signed and certifications completed by an individual who signed the PPP promissory note. The individual who signs the application is certifying under law that the borrower met the requirements of the CARES Act and Flexibility Act of 2020. The individual will be required to authenticate their identity as part of the signing process.

  1. Use the Create New Person tab to add an authorized signer.
    a.  Verify or enter the email of the authorized signer in the email box.
    b.  After information is verified or entered, hit Submit and Send Email for eSignature button.
    c.  If prompted, review and complete any of the missing required fields.
  2. A signature request email will be sent to the authorized signer to eSign the 3508 or 3508EZ Form. They will be required to enter their name and address and answer a series of questions to confirm their identity prior to being allowed to sign the application. 
  3. The Authorized signer will certify each question with their initials and then sign the application. Once completed, click the “Click to Sign” button. By clicking this button, the application is submitted to Enterprise.
  4. The Authorized signer will receive an email with a copy of their signed form.

Upon receipt of the signed application, Enterprise has 60 days to review the application and supporting documentation and make a forgiveness recommendation to the SBA. If we need more information, we’ll contact you. Any additional information should be submitted via the portal. We will notify you when we submit your forgiveness application to the SBA.

The SBA will process our recommendation and notify Enterprise of its decision. The SBA is obligated to review and make a final decision within 90 days.

Enterprise will notify you of the final SBA decision.

  • 100% of the loan amount is forgiven - You will receive a letter notifying you that your PPP promissory note has been “Paid in Full”. 
  • Less than 100% of the loan amount is forgiven - In the event 100% of your loan amount is not forgiven, you are required to pay back any unforgiven balance. Enterprise will contact you with additional information regarding any required payments.

Tips for Completing the Loan Forgiveness Application

  • Supporting documents for payroll - Some third-party payroll providers have developed reports to help borrowers complete the compensation and FTE sections of the PPP forgiveness application. Contact your payroll provider for more information. Enterprise is not liable for calculations in any reports provided by third-party payroll providers. 
  • Form 3508EZ Criteria - If the second box on the "Check your EZ Form Eligibility" is checked, you must upload supporting documentation for the average number of full-time equivalent employees on payroll employed by the Borrower on January 1, 2020 and at the end of the Covered Period.
  • Employees at Time of Loan Application - Enter the Headcount number used on the original loan application.
  • Employees at Time of Forgiveness Application - To determine the Headcount at the time of the loan forgiveness application, use a counting method that is consistent with how the Headcount was determined at the time of the loan application. For example, if the owner was in the employee count, be sure to include the owner in the employee count for forgiveness.
  • $100,000 compensation limit for Employees - For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period. For an 8-week Covered Period, that total is $15,385. For a 24-week Covered Period, the total is $46,154. 
  • $100,000 compensation limit for Owner-employees, a self-employed individual, or general partners - The amounts paid to owners (owner-employees, self-employed individuals or general partners) for a 24-week Covered Period, is capped at $20,833 (the 2.5-month equivalent of $100,000 per year) for each individual or the 2.5-month equivalent of their applicable compensation in 2019, whichever is lower. For an 8-week Covered Period, this amount is capped at 8/52 of 2019 compensation (up to $15,385).
    • Note: Owner-employees in a C- or S- Corporation who has less than a 5 percent ownership stake will not be subject to the owner-employee compensation rule. Instead, these individuals will be capped at the Employee compensation limits. For an 8-week Covered Period, that total is $15,385. For a 24-week Covered Period, the total is $46,154. 
  • Small Business with both Employee Compensation and Owner Compensation - Our electronic forgiveness platform has a compensation section for Employees and a separate section for Owners. If you are including Owner Compensation in the forgiveness application, answer Yes to the question “Did you compensate any owners during the covered period?” Selecting Yes will add an Owner Compensation section. 
    • Use the Employee Compensation section to enter employee compensation.
    • Use the Owner Compensation section to enter Owner compensation.
    • Amounts entered in the Owner Compensation section will be added to Employee Compensation and reported as payroll cost on Line 1 of 3508EZ or Line 1 of 3508 via inclusion on line 9 of Schedule A.
  • Sole Proprietors - No Employees - If you are a sole proprietor, answer Yes to the question “Did you compensate any owners during the covered period?”  Selecting Yes will add an Owner Compensation section.
    • Skip the Employee Compensation section. 
    • Use the Owner Compensation section to enter Owner compensation.  
    • Amounts entered into the Owner Compensation section will be reported as payroll cost on Line 1 of 3508EZ or Line 1 of 3508 via inclusion on line 9 of Schedule A. 
  • Sole Proprietors who take Draws instead of Payroll - Some owners may take draws instead of “payroll”, not have a separate business checking account (they use their personal account so they don’t “pay” themselves) or due to the pandemic are not making enough money to “pay” themselves. The supporting documentation required to be attached to the forgiveness application is the 2019 Schedule C. Borrowers do not need to have a cancelled check or payroll record to show actual disbursement of the PPP loan proceeds.

There are three forgiveness forms: 3508S, 3508EZ and 3508. This chart summarizes the criteria for each form.

Criteria
Form
Loan amount is $50,000 or less and does not meet certain SBA affiliation rules.1 If yes - Use Form 3508S
If no - Go to next criteria
The Borrower is a self-employed individual, independent contractor, or sole proprietor 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 SBA PPP Loan Application Form 2483. If yes - Use Form 3508EZ
If no - Go to next criteria
The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, "employees" means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000)?
AND
The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also ignore reductions in an employee's hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details.
If yes - Use Form 3508EZ
If no - Go to next criteria
The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, "employees" means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);
AND
The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.
If yes - Use Form 3508EZ
If no - Use Form 3508 (including Schedule A)