PPP Loan Forgiveness

One of the most beneficial aspects of the PPP loan program is the opportunity to have 100% of the loan, and any accrued interest, forgiven.  The outcome of the PPP forgiveness is that the borrower has received a TAX-FREE GRANT FROM THE SBA.

Any amount of the loan that is not forgiven must be repaid by the borrower plus interest over an approximately 8-month period, if the loan was made before June 5, 2020, or approximately a 3.5-year period if the loan was made after June 5, 2020.

The information provided on this web page is intended to be a summary guide to the PPP forgiveness program and provide a roadmap for borrowers on the process of filing an application for forgiveness.  This information does not replace the specific instructions from the SBA, links to which are provided below, or the advice of accounting or legal professionals that may be required.  This site does not provide legal or accounting advice.  You are responsible for the correct content of your forgiveness application.  This web page will provide the links to the online forgiveness applications you are required to use if you obtained your PPP loan through a lender using PPP-Apply. (See information on the specific forgiveness application forms below.)

General Information on Forgiveness Under the New PPP Statue and Regulations

Up to 100% of the PPP loan amount can be forgiven if the borrower has, during the “Covered Period,” spent the funds for allowable expenses, including:

  1. Payroll expenses including direct payments (with limits) to employees and owners and certain employee benefits. 
  2. Certain business mortgage interest payments for real or personal property on obligations, rent or lease payments for real or personal property, and business utility payments for services.
  3. Other specified business expenses.

Documentation must be available for the claimed expense on the amounts actually spent during the Covered Period and the records kept for three to six years.  The document retention period depends on the loan size and type of expense. 

No more than 40% of the forgiveness amount can be for expenses that are not payroll.

There are specific definitions and limitations that apply to the allowed expenses listed above, which are explained in the SBA instructions. 

The most complex instructions for loans over $150,000 and relate to the limitations on forgiveness that apply to a borrower that has reduced payroll or the number of employees by more than 25%, and not made up that reduction by rehiring within defined periods.

The borrower may need to consult appropriate professional accounting or legal advice in making this determination or any determinaton.

Neither we nor your lender can provide legal, accounting, or tax advice on which form to use or how to determine the calculation of any employee or payroll reductions. 

How to Apply for Forgiveness


For loans of $150,000 and below - the new 3508S form.

The SBA published a new 3508S form on January 19, 2021.  You must use this new form to take advantage of the benefits of the new law on forgiveness.  (Please click on the orange button below.) It takes 5 minutes to complete this new form.

The new 3508S form has a built-in electronic signature.  You must fill it out online including the electronic signature, save it to your computer, then attached the saved file to an email addressed to: 


This email is for sending the 3508S form only - we do not read or respond to any questions that might be included in this email.  To ask a question about the forgiveness process, please email:


For loans of above $150,000

Six Steps to Apply for Forgiveness on Loans Above $150,000.

In order to have the loan above $150,000 forgiven, a borrower must take five steps, 1 to 6, listed below.  These steps must be done carefully in order to receive the forgiveness.  If any part of the loan is not forgiven, you will be responsible for repaying that amount, plus interest.  PLEASE READ AND FOLLOW THESE INSTRUCTIONS CAREFULLY and the process will go smoothly.  The five steps are:

  1. Download the SBA Instructions for forms 3508 and 3508EZ from the SBA website:  www.sba.gov.
  2. Determine whether you are eligible to file the 3508EZ form or must use the 3508 form. Even if you are eligible to file the form 3508EZ, if you have employees you will find the Schedule A of form 3508 to be useful, even if you do not have to file it.
  3. File the appropriate Forgiveness Application form to request forgiveness with the lender that made the loan. If you received your loan as a result of applying through PPP-Apply.com (this website), then the Forgiveness Application must be filed through this website.  DO NOT FILE THE FORGIVENESS APPLICATION DIRECTLY WITH THE LENDER.
  4. Sign the Forgiveness Application and certify that (a) the information in the application, (b) the supporting documentation provided with the application, and (c) the supporting documentation you are required to maintain, but not file with the application, are all true and correct. Providing false information and documentation is a federal crime subject to severe civil and criminal penalties.
  5. When you are ready to file the 3508EZ or 3508 form, please request a secure upload link by sending an email to: pppforgiveness@paymentsecurity.net.
  6. PLEASE DO NOT EMAIL THE FORGIVENESS APPLICATION NOR THE SUPPORTING DOCUMENTS.  This secure link is only for 3508EZ and 3508 forms.  (If your loan is for $150,000 or less, use the instructions above.) 
  7. Maintain for a period of six-years any of the documentation not required to be filed with the Forgiveness Application but required to be maintained by the borrower for inspection by SBA or others. (See the SBA instructions for further information.)