How to Return PPP Loan Funds

Have you received your PPP loan and are now wondering how to return the funds? We have compiled a step-by-step guide on how to do so.

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The SBA’s Paycheck Protection Program (PPP) loan program provides loans to small businesses to help them keep their employees on the payroll during the COVID-19 pandemic. If you have received a PPP loan, you may be wondering how to return the funds if you no longer need them or if you are unable to meet the program’s requirements.

Here we will explain how to return PPP loan funds and what you need to do in order to ensure that you are in compliance with the program’s rules.

What You Will Need

· A copy of your PPP loan application and promissory note
· Documentation demonstrating that you have returned any proceeds from the loan that you are not entitled to keep
· A written request to your lender for cancellation of the loan

What is a PPP Loan?

The Paycheck Protection Program (PPP) loan is a government-backed loan that is meant to help small businesses keep their employees on the payroll during the coronavirus (COVID-19) pandemic.

The PPP loan is intended for small businesses with 500 or fewer employees. The loans are available through participating lenders, such as banks and credit unions, and can be for up to 2.5 times your small business’s average monthly payroll costs.

The maximum loan amount is $10 million. PPP loans have an interest rate of 1%, and payments on the loan are deferred for six months, meaning you will not have to make any payments on the loan for that period of time.

You can apply for a PPP loan if your small business has been affected by COVID-19. To apply, you will need to fill out an application and submit it to a participating lender. Once your application is approved, you will receive the funds from your PPP loan in the form of a forgivable loan.

How to Return PPP Loan Funds

If you’re a small business owner who has received a Paycheck Protection Program (PPP) loan, you may be wondering how to return the loan funds if you no longer need them. The process is actually quite simple. In this article, we’ll walk you through the steps of returning PPP loan funds.

Step One: Notify Your Lender

If you have decided to return your funds, you will need to notify your lender as soon as possible. It is important to put your request in writing and include the following information:

-Your name and contact information
-The name of your business
-The date you received the PPP loan
-The loan number
-The amount of funds you are returning
-The reason for return

Step Two: Request a Refund

If you have already received your PPP loan and decide that you do not want or need the money, you may request a refund. This process is pretty simple and can be done entirely online. The first thing you will need to do is log into your account on the SBA website. Once you are logged in, navigate to the “My Loans” page and select the loan that you would like to refund.

On the next page, you will see an option to “Request a Refund.” Click this button and follow the instructions on the screen. You will be asked to provide a reason for your refund request and will need to upload any supporting documentation. Once you have submitted your request, it will be reviewed by an SBA representative. If everything is in order, your refund will be processed and you should receive your money within 10 business days.

Step Three: Repayment

If you have not yet filed for forgiveness, you have the option to repay your loan in full at any time without penalty. To make a full repayment, contact your lender and let them know that you would like to make a full repayment of your PPP loan. Be sure to have your loan number handy when you call.

If you are not eligible for forgiveness or decide not to apply, you will need to begin making payments on your loan. Your lender will contact you to set up a payment schedule. You will be required to make payments on the principal and interest of your loan, and your first payment will be due no later than 10 months after the end of your covered period.

If you are having difficulty making payments on your loan, contact your lender immediately to discuss options for deferral or modification of your loan terms.


Assuming you have not used the entire loan amount and/or have not met the requirements for loan forgiveness, you will need to return the funds.

To do so, you will need to:

1. Notify your lender in writing that you with to return the funds. Include your name, business name, address, phone number, and signature.
2. Send a check or money order made out to the “Small Business Administration” for the full loan amount plus any accrued interest. Include a note with your business name and address.
3. Mail everything to: Paycheck Protection Program Loan Depository, P.O. Box 6050 Portland, OR 97208-6050

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