Paycheck Protection Program Loan Forgiveness Guide
TwinStar Credit Union has been proud to continue to support our business members and local businesses within our communities through these difficult times and would like to thank those that chose TwinStar to process and service their Paycheck Protection Program (PPP) loan.
As the PPP loan program transitions into the forgiveness phase, we are prepared for changes to the guidelines and requirements previously issued by the Small Business Administration and U.S. Treasury Department.
Based upon a July 24, 2020 notice from the SBA, they plan to open their secure PPP Forgiveness Platform on August 10, 2020 – subject to extension in any new legislative amendments to the forgiveness process necessitate changes to the system.
TwinStar Credit Union has developed a secure and automated online process through DocuSign, to assist you in completing your PPP Loan Forgiveness Application and upload all required documents from the convenience of your computer, tablet, or mobile phone. We expect to begin accepting applications through this portal very soon and will notify you by email when it is ready. In the meantime, we recommend and encourage that you review the Loan Forgiveness Application form and instruction links provided below to begin to prepare the information required to complete your application.
PPP Loan Forgiveness Application Information (released June 17, 2020)
The SBA updated the PPP Loan Forgiveness Application to streamline the forgiveness application process for certain borrowers. The “EZ” Paycheck Protection Program Loan Forgiveness Application (SBA Form 3508EZ) is a three-page form, requiring less documentation and supporting information than previously required. This form applies exclusively to those borrowers who meet any one of the following criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
SBA also updated the standard PPP Loan Forgiveness Application (SBA Form 3508) to reflect changes as amended by the Paycheck Protection Program Flexibility Act and are for those borrowers that fail to meet the requirements referenced above.
Instructions for both Loan Forgiveness Applications can be accessed via the SBA website (https://www.sba.gov/) or by selecting the links below:
- SBA Loan Forgiveness Application Form 3508 – Instructions
- SBA EZ Loan Forgiveness Application Form 3508EZ – Instructions
In addition, the SBA recently released additional guidance on a PPP borrower’s request for loan forgiveness on their website https://www.sba.gov/ in the form of Frequently Asked Questions (FAQs).The document addresses questions related to general loan forgiveness, forgiveness of payroll and non-payroll expenses, loan forgiveness reductions, etc. You can further access and review this document by clicking HERE
AS A REMINDER, TWINSTAR CREDIT UNION IS NOT ACCEPTING APPLICATIONS FOR FORGIVENESS AT THIS TIME. AS A TWINSTAR CREDIT UNION PPP LOAN BORROWER, YOU WILL BE NOTIFIED BY EMAIL WHEN YOU ARE ABLE TO SUBMIT YOUR APPLICATION FOR LOAN FORGIVENESS.
If you have any questions regarding your PPP loan and/or the forgiveness process, please contact our Business Services team at BusinessServices@twinstarcu.com for further assistance.
Thank you for choosing TwinStar Credit Union to help support you, your business and your employees with all your banking needs. We’re here to continue to help support our members and communities that have been effected by the negative impacts from the COVID-19 pandemic.