How to File for PPP Loan Forgiveness

The Paycheck Protection Program (PPP) loan forgiveness application is now available. Here’s everything you need to know about how to file for PPP loan forgiveness.

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The Paycheck Protection Program (PPP) provides loan forgiveness for qualifying loans issued to small businesses to maintain payroll during the COVID-19 pandemic.kargh

If you have received a PPP loan, you may be eligible for loan forgiveness if you use the loan proceeds for eligible payroll costs, interest on your mortgage, rent, and utilities payments over the covered period. You will need to submit a loan forgiveness application to your lender.

This guide will provide you with an overview of what you need to know in order to file for PPP loan forgiveness.

What is the PPP Loan Forgiveness Program?

The Paycheck Protection Program (PPP) loan forgiveness program is a federal initiative that was created in response to the COVID-19 pandemic. The program provides small businesses with loans that can be used to cover payroll and other expenses. If a business meets certain criteria, the loan can be forgiven, meaning that the business would not have to repay the loan.

Applying for PPP Loan Forgiveness

The first step to apply for PPP Loan Forgiveness is to submit the required application form to your lender. You can find the form on the SBA website. Once you have submitted the form, your lender will review it and determine if you are eligible for loan forgiveness. If you are eligible, they will send you a loan forgiveness application.


The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

To be eligible for this loan forgiveness, borrowers must use the loan proceeds for payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after receiving their loan. At least 60% of the proceeds must be used for payroll. Loan payments will be deferred for 6 months. After 6 months, borrowers may begin making interest only payments.

Borrowers can apply for loan forgiveness once they have used all of the funds for which they are requesting forgiveness. Borrowers will need to submit documentation verifying that they used the proceeds for eligible payroll and non-payroll expenses.


Documentation is key when applying for forgiveness of your PPP loan. You will need to provide detailed information about your payroll and other eligible expenses to your lender. Be sure to keep all supporting documentation for your records.

Lenders will require proof that you spent the loan proceeds on eligible expenses. The Small Business Administration (SBA) has indicated that eligible expenses include:

-Payroll costs
-Rent or mortgage interest

You will need to provide evidence that you incurred these expenses during the covered period. This may include canceled checks, payment receipts, or bank statements. If you are claiming the safe harbor for payroll costs, you will also need to provide documentation showing that you reduced your employees’ salaries or wages by more than 25%.


The type of business you have and the number of employees you have will determine which SBA PPP loan forgiveness application you will use.

If you are a sole proprietor or an independent contractor, you will use the SBA Form 3508S. If you have employees, you will use either the SBA Form 3508EZ or the SBA Form 3508.

The application you use must be submitted to your lender no later than 10 months after your covered period ends.

Your lender has up to 60 days to review and approve your loan forgiveness application. Once approved, the SBA has up to 90 days to issue a decision on your loan forgiveness application.

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