View All Posts

PPP Loan Forgiveness Updates for 2022


By Amy Lou Blunt, EVP and Chief Credit Officer

SBA Paycheck Protection Program Loan Forgiveness for 2021 First and Second Draw loans is in full swing! If you have not yet applied for forgiveness, this is a great opportunity to submit your application. Forgiveness response times are at their shortest, and the process is fairly painless!

Little has changed in the process from forgiveness of the 2020 PPP loans, except for the version of the application form. You can apply for forgiveness once all loan proceeds have been used. If you do not apply for forgiveness within 10 months after the last day of the Covered Period, then PPP loan payments are no longer deferred, and you must begin making loan payments to the bank, per the terms of your Note.

Your Covered Period begins with your Disbursement date in most cases, and can be anywhere from 56 days to up to 168 days from that date forward.

Forms You Need

Most customers qualify for using SBA Form 3508S (loans up to $150,000), which does not require that you provide additional documentation to show the calculations used to determine your loan forgiveness amount. However, the SBA may request information and documents to review those calculations as part of the loan review or audit process, so make sure you keep them handy.

PPP borrowers with loans greater than $150,000 will use SBA Form 3508EZ, which does require the submission of the supporting documents along with the application.

Documentation Details

Payroll documentation can be in the form of payroll tax filings, payroll company reports or bank account statements. Non-payroll expenses incurred during the Covered Period that are considered Eligible Expenses should also be documented:

Business mortgage interest payments can be supported with a copy of the lender amortization schedule and receipts, or the account statement; business rent, utility payments, covered operations expenses, etc., can be verified with copies of invoices and cancelled checks or account statement. Other expenses can be Eligible, and are defined in the Forgiveness Application Form Instructions. You will complete the form in its entirety, initial, sign and date where indicated.

Ready, Set, Send!

When you are ready to submit your form, please send it, and, if required, the supporting documents to our dedicated email at We will log it into the queue and process your submission with the bank’s recommendation for forgiveness.

Once the SBA accepts the recommendation and confirms forgiveness, you will receive a copy of your SBA Notification Letter, closing your loan.

And just like that – a clean slate and a fresh start for 2022!