sticky note with PPP 2021 written on it

Paycheck Protection Program Forgiveness

Draw 1 and Draw 2 PPP Forgiveness

The Paycheck Protection Program provides forgivable SBA loans to help businesses keep their workforce employed during the COVID-19 pandemic. The process for forgiveness is the same for Draw 1 and Draw 2 PPP loans, with the exception that Draw 2 borrowers have to provide documentation that the business experienced a reduction of 25% or more in gross receipts in any quarter of 2020 when compared to the same quarter of 2019 or on an annual basis 2020 compared to 2019.

 

Apply for Forgiveness


Sole Proprietor, Independent Contractor, Eligible Self Employed with no employees:

  • Automatically qualify for loan forgiveness

First Draw PPP Borrowers with employees qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained

  • The loan proceeds are spent on payroll costs and other eligible expenses; and

  • At least 60% of the proceeds are spent on payroll costs


Sole Proprietor, Independent Contractor, Eligible Self Employed with no employees:

  • Automatically qualify for loan forgiveness with proof of 25% reduction in gross receipts from 2019 to 2020

Second Draw PPP borrowers with employees qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan

  • The loan proceeds are spent on payroll costs and other eligible expenses; and

  • At least 60% of the proceeds are spent on payroll costs

  • Proof of 25% reduction in gross receipts from 2019 to 2020
  • A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

  • If you file Schedule C or Schedule F, it is best to wait until at least 11 weeks after you receive your PPP funds to apply for full forgiveness.

  • For businesses with employees, the forgiveness window can begin as early as 8 weeks after you receive your PPP funds.

When you are ready to apply for loan forgiveness, request an invitation to apply. We will send you a link to an application along with instructions.
When we receive a decision from the SBA regarding your forgiveness application, we will notify you via email and, if applicable, send you a copy of your paid in full note via HPBGO conversations.

Have Questions? Request a phone call or send an email to covidrelief@highplainsbank.com