Womply is not involved with PPP forgiveness. Please contact your PPP lender for information on their forgiveness process. If your lender has opted-in you can apply via the SBA’s direct forgiveness portal.

You can apply for PPP loan forgiveness as soon as all of your loan proceeds have been used, which at the earliest is the first day after your selected “covered period” (the 8-24 week period after your PPP loan is funded).

However, you must apply for loan forgiveness within 10 months of the last day of your covered period in order to receive a deferment on your loan payments. If you wait longer, you’ll have to start making payments on the balance and deferred interest of your loan (unless your forgiveness application has been submitted within the deadline).

The SBA has established an online PPP forgiveness platform called the SBA PPP Direct Forgiveness Portal. If your PPP loan was for $150,000 or less, AND if your lender has opted-in to the use of the platform, you will be able to submit your PPP loan forgiveness application online directly to the SBA, using the electronic equivalent of SBA Form 3508S. For full details, read our post about the new SBA PPP Direct Forgiveness Portal and other recent rule changes. Check the SBA’s list of PPP lenders who have opted-in to the SBA PPP Direct Forgiveness Portal.

Here’s the SBA’s recording of a training webinar for use of the direct forgiveness portal.

If you received any of your PPP loans (First or Second Draw) via DreamSpring or TMC, or if your lender has not opted-in, you will need to contact your lender for next steps and follow their instructions on applying for loan forgiveness. You’ll want to get together all of your documentation as outlined here and then contact your PPP lender. They will provide you with the correct loan forgiveness form to fill out for your application—either the SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or a lender equivalent. (Forms 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements.) Your lender can provide further guidance on which form you should use.
Submit the form and documentation to your PPP lender and continue to communicate with your lender throughout the loan forgiveness process. Your lender will notify you of the forgiveness amount that the SBA pays and if you will have any payments due on your loan.

If you borrowed $150,000 or less, you should use the new streamlined form 3508S (or lender equivalent) with January 19, 2021 revision date. ALL PPP borrowers who received $150,000 or less should use form 3508S or the lender equivalent. Read our step-by-step tutorial for PPP forgiveness under $150K.

If you borrowed over $150,000, you will use either Form 3508EZ or Form 3508 (or lender equivalents).

You may only use Form 3508EZ if you meet one of the following requirements:

• You are self-employed and don’t have any employees
• You have employees but did not reduce your employee count, did not reduce employee hours, and did not reduce employee wages by more than 25%
• You have employees but did not reduce their wages by more than 25% and could not operate as normal due to decrease business operations as a result of COVID-19 health guidelines

If you do not meet the requirements for Form 3508EZ then you will need to fill out Form 3508. Read our step-by-step walkthrough for PPP forgiveness applications over $150K.

If only a portion of your loan is forgiven, or if your forgiveness application is denied, then you must repay any remaining balance due on the loan and accrued interest on or before the maturity date of the loan (either 2 or 5 years after your loan is approved, depending on when you got your loan… 2021 loans have a 5-year maturity date). There is no prepayment penalty for paying your loan off early.

NOTE: Interest accrues during the time between the disbursement of the loan and SBA remittance of the forgiveness amount. If your loan is forgiven, you will not be responsible for that interest. However, you are responsible for paying the accrued interest on any amount of the loan that is not forgiven. Your lender is responsible for notifying you when the SBA remits the loan forgiveness amount (or when the SBA determines that no amount of the loan is eligible for forgiveness) and the date on which your first payment is due, if applicable.

In specific cases, you may submit a PPP forgiveness appeal with the SBA. Note: Submitting an appeal doesn’t not guarantee that you will get loan forgiveness.

For additional questions related to PPP forgiveness, please see our full PPP Forgiveness FAQ.