Paycheck Protection Program (PPP) Loan Forgiveness
PPP Forgiveness Update
The SBA recently released updated forgiveness requirements and application forms. Please be assured that we are working hard to update our Online Portal to accommodate the new guidance. As a result, we have temporarily disabled the Forgiveness Portal to allow our team to make necessary updates. Additional details about applying for forgiveness with the new rules and revised forms will be provided shortly. More information about our PPP forgiveness efforts, including application details will be added to this page as they become available. Please make sure to check back here periodically for continued updates.
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.
Preparing for PPP Loan Forgiveness
Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.
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
- 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 advisors before applying.
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, including a revised 3508S as a streamlined, one-page application for borrowers that received a PPP loan of $150,000 or less.
- 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
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. 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 Simplified (revised application for PPP loans totaling $150,000 or less), 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:
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 Online 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.