Paycheck Protection Program(PPP) Forgiveness Applications

When should I apply for forgiveness?

For loans originated in 2020, you should apply now.  For loans originated in 2021, you should apply at the end of your Covered Period.  Repayment begins 10 months after the end of your Covered Period.  Loans originated in 2020 are in or approaching repayment


How do I apply for forgiveness if my loan is $150,000 or less?

Visit SBA Direct Forgiveness and follow instructions provided by the SBA.

The SBA developed SBA Direct Forgiveness to provide a direct secure portal for borrowers to authenticate themselves and complete their 3508S application.  The portal is only available for loans of $150,000 or less and streamlines the forgiveness applications:

  • Pre-populates many of the fields to make the application more efficient for you to complete!
  • Applications can be completed in 5-10 minutes
  • Lender reviews completed applications in the portal and submits payment request to SBA
  • SBA provides final notice of forgiveness to borrower

The SBA is also providing direct borrower support.  Various resources including this User Guide and a telephone support line are available to borrowers.   Live telephone support is available M-F 8am-8pm via the SBA PPP Direct Forgiveness Hotline at 877-552-2692.  A knowledge base of Frequently Asked Questions can be found here.

The SBA is holding a Borrower education session Thursday, August 19, 2021 starting at 2:30pm ET presented by SBA staff and experts involved with PPP and forgiveness processing.  Click here to join the Microsoft Teams presentation.

If you are unable to access the portal or if the SBA is unable to assist you, you may complete SBA Form 3508S and email it to PPP3508S@shoreunitedbank.com or deliver it to your relationship manager.


How do I apply for forgiveness if my loan is greater than $150,000

Determine the appropriate application form and instructions applicable to your loan.

Begin by reviewing Checklist for Using SBA Form 358EZ found on page 5 of the SBA Form 3508EZ . To use SBA Form 3508EZ you must qualify by meeting one of three sets of criteria described in the Checklist. If you qualify for the SBA Form 3508EZ continue with these instructions and use this application instructions. If you do not qualify for the 3508EZ application proceed with SBA Form 3508 application and instructions.


Gather all required supporting documentation.

Each application requires submission of specific documentation supporting your payroll and non-payroll covered expenses. Use the Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application section of your respective instructions as a checklist to ensure complete submission. In addition, you may be prompted to provide your IRS 941 forms for each quarter of the applicable year.

If you have employees and use a Third-Party Payroll provider, request a CARES Act Forgiveness payroll report which may eliminate certain documentation requirements and contain most information needed to populate data corresponding to Form 3508 Schedule A and Schedule A Worksheets.

 Consult your accountant or other advisors for support as needed.
 

Submit your application.

Email us at PPPInfo@shoreunitedbank.com  when you are ready to apply for forgiveness and we will send you specific instructions including a link to our secure online portal where you will complete the application and upload all required documents.

What happens after I apply for forgiveness?

Shore United Bank will review and submit a recommended decision to the SBA within 60 days of receiving a complete application. The SBA will conduct a secondary review and issue a final decision within 90 days of receiving our recommendation. Overall, it may take up to 150 days to receive a final decision regarding your approved forgiveness amount. However, majority of the final decisions and payments are being received within 30-60 days of the bank receiving a completed application.

Additional information will be requested if errors are identified or if the application does not correspond with the supporting documentation submitted. We will notify you via email to remedy such issues. If missing or incomplete information cannot be remedied, the forgiveness request may be partially approved or denied.

The SBA or the bank will provide the final disposition of your forgiveness request in writing when the decision process is complete.

Note that the SBA may conduct an audit of your PPP Loan and Forgiveness files at any time in their discretion up to six (6) years after the loan is forgiven or paid in full. If necessary, we will notify you and outline any required information to satisfy the SBA’s review requirements. If the SBA chooses to audit your forgiveness application while under our review, a decision regarding your application cannot be finalized until the SBA audit is complete.



Resources:

To read the full instructions and to access Forms 3508S, 3508EZ and 3508 issued by the US Treasury and SBA please click any of the following links:
SBA Form 3508S
SBA Form 3508EZ
SBA Form 3508

To access all posted forms, rules and tools posted by the US Treasury and SBA please go to: Paycheck Protection Program | U.S. Department of the Treasury