PPP Loan Forgiveness
Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness
Updated March 2, 2021
The Economic Aid Act, passed by Congress has provided updates to the PPP Loan Forgiveness rules. The SBA has provided three new forgiveness forms, including a new simplified version for PPP loans under $150,000 that will significantly reduce the amount of effort and required documents needed to apply. We have implemented the necessary changes in our forgiveness portal to support the new rules and are now accepting forgiveness applications.
Loan Forgiveness Forms
The following forms may be requested as part of your loan forgiveness. Please download and fill out the forms prior to accessing the Loan Forgiveness Application Portal. Not sure what forms you will need? Please see the below Forgiveness FAQ form more information.
Loan Forgiveness Application Steps
PLEASE NOTE: The following steps reflect the forgiveness application process based on current legislation. We will continue to monitor and amend as new information becomes available. The following information below is for your reference only.
- Access BECU's PPP loan forgiveness portal
- Enter the SBA loan number or Lender loan number and PPP loan amount to log into the portal
- Validate or update the existing application information
- Complete all required fields
- Complete the online workbook or manual data entry for the forgiveness calculation
- Upload supporting documentation and forms
- Review and e-sign the automatically generated forgiveness application
- Submit your completed forgiveness application
EZ Form Application Documentation
Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:
- Bank account statements or third-party payroll service provider reports; and
- Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period.
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
- Health Insurance and Retirement Plans
- Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions included in the forgiveness amount.
- If you checked only the second box on the checklist on page 1 of the SBA Form 3508EZ instructions, provide documentation supporting the average number of full-time equivalent employees on payroll employed by the Borrower on January 1, 2020 and at the end of the Covered Period.
Non-Payroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.
- Business mortgage interest payments
- Lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments; or
- Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments during the Covered Period.
- Business rent or lease payments
- Lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments; or
- Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period.
- Business utility payments
- Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.
- If a Government Official, or the spouse of a Government Official has controlling interest in the business applying for forgiveness, you are required to submit the Borrower's Disclosure of Certain Controlling Interests (PDF) form with your forgiveness application.
Full Forgiveness Application
All items noted under the EZ Form Application Documentation in addition to:
- FTE: Documentation showing:
- The average number of FTE employees on payroll per week employed by the Borrower between February 15, 2019 and June 30, 2019;
- The average number of FTE employees on payroll per week employed by the Borrower between January 1, 2020 and February 29, 2020; or.
- In the case of a seasonal employer, the average number of FTE employees on payroll per week employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive 12-week period between May 1, 2019 and September 15, 2019.
The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period.
Loan Forgiveness Frequently Asked Questions
Please note: these FAQs are not intended as legal advice nor as an official interpretation of the rules. Due to the complexities of the program, we may learn of inaccuracies to our current understanding. We will update these FAQs to the best of our ability as new information becomes available.