Paycheck Protection Program (PPP) Loan Forgiveness
PPP Forgiveness Update
We understand some of our clients may be eager to submit PPP loan forgiveness applications. Due to evolving PPP loan forgiveness guidance, we now expect to start accepting forgiveness applications in late March. In the meantime, while we continue to work on incorporating the new forms and guidance into our online Portal, we have updated the information on this page We hope that this information will answer many of your questions specifically focused on the new legislation.
More information about our PPP efforts, including application details, will be added to this page as they become available. You can also reach out directly to your banker if you have questions and/or would like to learn more about how we can help.
Overview of Changes to PPP Loan Forgiveness Due to Recent Legislation
For our business clients who received PPP funding through the first round in 2020, we look forward to supporting you throughout the loan forgiveness process.
We will update this page with the latest information from the SBA, and provide helpful resources for beginning your loan forgiveness process. This page, along with the latest FAQs from the SBA, will provide helpful resources for beginning your loan forgiveness application. Please check back frequently to stay informed and prepare for this next phase of the PPP loan.
As the borrower, you're responsible for understanding the program rules and if your loan qualifies for forgiveness. You should also review the SBA's site and the Treasury's site frequently as they are regularly updated.
In preparation for applying for forgiveness through the online portal, it is important that you review the steps below.
Step 1: Determine if your business is eligible for forgiveness
Before you can apply for PPP loan forgiveness, you'll first want to make sure you're eligible to apply. Be sure your covered period(s) has ended and you know the PPP loan proceeds that were used for eligible costs.
- Only loan proceeds spent on qualified expenses are entitled to forgiveness. Qualified expenses include payroll expenses (minimum 60% of proceeds) and eligible non-payroll expenses (up to 40% of proceeds) paid or incurred during the applicable covered period or alternative covered period. For a full list of all qualified expenses and items that may reduce your forgiveness amount, please visit SBA's website.
- Submitting a forgiveness application before exhausting the entirety of your loan proceeds on qualified expenses could reduce your forgiveness amount. We encourage you to consult with your accountant, legal or financial advisor(s) before applying.
What is the covered period?
The covered period is the period of time you have to spend your loan proceeds on eligible PPP costs. The SBA allows you to choose any covered period from 8 weeks (56 days) to 24 weeks (168 days), beginning on the date you received your loan proceeds. Only loan proceeds paid or incurred on eligible PPP costs during your covered period are eligible for forgiveness. To apply for PPP loan forgiveness, your covered period must have ended.
If you are applying for forgiveness of a Second Draw PPP loan that is more than $150,000, you must submit the loan forgiveness application for the First Draw PPP loan before or at the same time as the loan forgiveness application for the Second Draw PPP application. Note that the covered periods for your first and second draw loans cannot overlap.
What are eligible PPP loan costs?
The spirit of the program is to keep employees on payroll by helping businesses cover certain payroll and benefit expenses. In addition, certain non-payroll expenses are eligible to help keep your business moving forward. At least 60% of loan funds must have been used to cover payroll expenses, with no more than 40% used on non-payroll costs. Expenses include:
- Payroll expenses (at least 60%): Salaries, wages, tips or commissions (capped at $100,000 on an annualized basis per employee); employee benefits (i.e., vacation/sick pay, healthcare/retirement benefits, life/vision/disability/dental insurance); and state and local taxes assessed on compensation.
- Non-payroll expenses (no more than 40%): Mortgage interest, rent, and utilities that were incurred, in force or for which service began before February 15, 2020; worker protection costs related to COVID-19; uninsured property damage costs caused by looting or vandalism during 2020; and certain supplier costs and expenses for operations.
You can find additional details about PPP loan forgiveness and eligible PPP loan costs on the SBA's website.
Step 2: Review the SBA application forms
- Our online loan forgiveness application is based on the SBA application forms
- Visit the SBA website to determine whether you must use Form 3508 or qualify to use either Form 3508 EZ or Form 3508S. Please note: On January 19, 2021, the SBA and Treasury published updated PPP loan forgiveness guidance and forms.
- Borrowers with a PPP loan of $150,000 or less are eligible to use the simplified 3508S, a streamlined, one-page application.
- Borrowers with a PPP loan of more than $150,000 will be able to submit either the standard 3508 application or the 3508EZ application, depending on eligibility. You are eligible to apply for forgiveness using the 3508EZ application if you meet one of the two sets of requirements found on page one of the Application Instructions.
- Work through the applicable SBA Forms, together with any supporting schedules and worksheets, and gather any necessary receipts or statements, along with proof of payment.
- The three revised versions of the applications, which include instructions, are linked below:
Please note: You will need to upload the corresponding application if you DO NOT agree to e-consent/digital signature.
Step 3: Gather required supporting documentation
If you used the 3508 or 3508S to apply for forgiveness of your PPP loan, you’ll need to provide documents to substantiate how your loan proceeds were used by your business. Borrowers eligible to use the 3508S will not be required to provide supporting documentation when they submit their forgiveness application.* Click here to review recommended supporting documents that you will need to upload with your forgiveness application.
Please gather the required supporting documentation for the EZ or Standard application, as applicable, before beginning your online application. For complete information, please review the instructions associated with the applicable application. You must complete the loan application before uploading the supporting documentation; however, your application is not complete until all supporting documentation is uploaded to the Portal.
Please note: If your total PPP loan amount is $2 million or greater (combined with Affiliates), you will be required to submit the Loan Necessity Questionnaire, SBA Form 3509 (for-profit entities) or SBA Form 3510 (not-for-profit entities), in addition to all other required documentation. The questionnaire will require you to provide additional information to certify that under the CARES Act, the PPP loan you received was due to the current economic uncertainty making the loan necessary to support the ongoing operations of your business entity. If applicable, you should complete and upload the form, along with supporting documentation, into the appropriate placeholder in the Portal’s Dashboard. We encourage you to consult with your accountant, legal or financial advisors before submitting this form. Please find links below to both of these forms below:
*Despite the reduced application requirements for eligible borrowers, all borrowers are required to keep all documentation supporting their forgiveness application and demonstrating their compliance with the PPP requirements. Borrowers should ensure that they maintain all supporting documentation for their records, in alignment with the requirements of the applicable forgiveness application form.
Step 4: Await an email from BankUnited with forgiveness application instructions
Borrowers will receive an email with login instructions when they are able to access the online application portal. In order to ensure the best possible customer experience, we will be sending these emails in waves, allowing us to focus on each client’s specific needs.
This email will come from firstname.lastname@example.org and will contain a link to the Portal. Please make sure to check your junk/spam box to ensure you don’t miss the email. The links included in the email should not be shared with others; not all borrowers have the same access date for the online application.
Step 5: Apply for PPP loan forgiveness
Upon using the link provided to access the Portal, you will be required to utilize the login credentials you previously created when you applied for your PPP loan. You will be able to reset your credentials if necessary. Through the Portal, you will be able to complete your loan forgiveness application, upload supporting documentation and check the status of your application.
Follow these tips for a smooth application process:
- Upon entering the Portal, you must select the “Marketplace” option on the left navigation menu to begin your forgiveness application. You must complete the loan application before uploading the supporting documentation; however, your application is not complete until all supporting documentation is uploaded to the Portal.
- Please make sure all supporting documentation is uploaded to the Portal in the following file formats: pdf, xls, xlsx, csv, doc, docx, jpg, jpeg, and png. DO NOT upload ZIP files. With the exception of the 3509 or 3510 and any supporting documentation, all documents must be uploaded separately into each appropriate placeholder. Do not upload multiple documents as a single PDF document.
- Use Google Chrome as your browser when completing your online application.
- If you are having issues with your password, make sure to clear your cookies, ensure that you are using Google Chrome, and click on “Forgot My Password” if you are unable to use your existing password.
Step 6: BankUnited will review your PPP loan forgiveness application
- Once you've submitted your application, a BankUnited representative will reach out if any information or documentation is missing or incomplete. Please watch for emails and/or phone calls from us.
- We have up to 60 days from receipt of your completed forgiveness application to review and submit your application to the SBA.
- Submission of a completed forgiveness application does not guarantee that your application will be approved, in whole or in part, by BankUnited or the SBA.
Step 7: Await SBA approval
- The SBA has up to 90 days from their receipt of your forgiveness application to complete their review and render a decision.
- We will notify you when we receive a final decision and/or remittance of forgiveness funds from the SBA.
PPP Loan Payment Deferral
If Borrower submits a loan forgiveness application within ten (10) months after the end of their applicable Covered Period, as defined by the Flexibility Act, no payment of principal or interest will be due before the date on which (1) Lender notifies Borrower that the Loan is not eligible for forgiveness; (2) the SBA remits the Loan forgiveness amount on such Loan to Lender, or (3) the SBA notifies Lender that the all or a portion of the Loan is not eligible for forgiveness. Interest will continue to accrue on the Loan during the deferment period. The loan deferral period for Borrowers who do not apply for forgiveness is ten (10) months after the applicable Covered Period ends.
If you have questions regarding your Paycheck Protection Program loan forgiveness process, please contact your banker.