PPP Loan Forgiveness

This page has current information and applications for Paycheck Protection Program (PPP) Loan Forgiveness. 

Loan Forgiveness Guidance

The SBA has partnered with a financial services technology provider to make available a secure platform (the PPP Forgiveness Platform) for lenders like VEDA to use to submit forgiveness applications to the SBA. Below are the PPP Loan Forgiveness Applications and corresponding instructions from the SBA, other required forms and checklists for each application type. Completed forgiveness application packages and any necessary supporting documentation should be emailed to your VEDA Loan Officer or PPP@veda.org. 

There are three types of PPP Loan Forgiveness Applications Forms. Select the form that applies to your loan size and other criteria as described below. Please download and complete all of the items listed under the forgiveness application package that applies to you and ensure your certifications are initialed, not checked or marked with an "x":

• Application 3508S: 1-Page application for all PPP loans of $150,000 or less.  
  • Download PPP Loan Forgiveness Application - form 3508S with instructions
  • Download PPP form 3508D - Borrower’s Disclosure of Certain Controlling Interests
  • VEDA Form 3508S Forgiveness Calculation Worksheet
  • VEDA PPP Forgiveness Checklist
    
    

• Application 3508EZ: PPP Borrowers with loans of more than $150,000 AND Borrower did not reduce employee head count or wages by 25% during the covered period (as more fully described in the 3508EZ application instructions).
  • Download PPP Loan Forgiveness Application - form 3508EZ with instructions
  • Download PPP form 3508D - Borrower's Disclosure of Certain Controlling Interests
  • VEDA Form 3508EZ Forgiveness Calculation Spreadsheet
  • VEDA PPP Forgiveness Checklist
    

• Application 3508: All other PPP borrowers please select and use the following Forgiveness Application:
  • Download PPP Loan Forgiveness Application – form 3508 with instructions
  • Download PPP form 3508D - Borrower's Disclosure of Certain Controlling Interests 
  • VEDA PPP Forgiveness Checklist
•  

Important Forgiveness Information

Covered Period

• Your covered period may begin the day funds were received into your account and for a minimum of 8 weeks, up to a maximum of 24 weeks.
• If you applied for your PPP loan using a Schedule C or Schedule F tax return, a minimum of 10 weeks is required for your covered period. 
• Covered period chosen should yield the most loan forgiveness and/or easiest forgiveness documentation.
• Longer covered periods may allow borrowers to document PPP funds for payroll, limiting the need for additional documentation for other uses.
• If you obtained two PPP loans, please ensure your covered periods are distinct and separate. Overlapping covered periods could reduce forgiveness amounts.

Supporting Documents

• Note that the new 1-Page application (3508S) for loans of $150,000 or less does not require you to provide supporting documentation but does require you to save such documentation in case of review by the SBA.
• 3508EZ and 3508 applicants:  VEDA cannot submit Forgiveness Applications to the SBA without including all required supporting documents from the Borrower.
• For each use of the PPP loan funds listed (payroll, lease, mortgage, utilities, etc.), the Borrower will need to provide the appropriate supporting documentation. 
• In addition to the required documents for the Forgiveness Application, there is a list of items Borrowers must maintain in a file (along with the Forgiveness Application) in case of review. 

Payroll

• If the Borrower’s loan is fully forgiven based on payroll only, then only the payroll section of the Forgiveness Application needs to be completed, and only the payroll-based support documentation needs to be provided. 
• If a loan can be fully forgiven by using payroll and only one of the non-payroll expense items, then only the payroll section and the one non-payroll item of the Forgiveness Application needs to be completed and documented. 
• Please note if a loan is between $50,000 and $150,000 and has reductions in staffing and/or hourly rates, you may need to reduce the forgiveness amount per the instructions in the application form.

Timing

• Borrowers may apply for forgiveness on their PPP loans following the completion of their chosen Covered Period.
• Forgiveness applications must be processed within 10 months of completion of the Covered Period in order to obtain forgiveness and avoid repayment of the full loan amount.
• Borrowers are responsible for submitting their forgiveness applications in a timely manner.
• VEDA has 60 days after receiving a complete Forgiveness Application to submit it to the SBA but will endeavor to submit to the SBA as quickly as possible. 
• The SBA has 90 days following the receipt of the Forgiveness Application to remit the Forgiveness amount with interest. 
• VEDA will notify Borrowers of the SBA’s decision on Forgiveness and on the amount of funds received and applied to reduce your PPP loan. 
• If there is a remaining balance, Borrowers can discuss plans for repayment with their VEDA loan officer.