Applications for loan forgiveness will be processed by your lender. They’ll provide you with instructions on where to apply. After you submit your application for forgiveness, your lender is required by law to provide you with a response within 60 days.
Record keeping and required documents for forgiveness:
These are the required documents you will need to collect to provide with your PPP forgiveness application. Your lender may have additional requirements.
Documents verifying the number of full-time equivalent employees on payroll and their pay rates, for the periods used to verify you met the staffing and pay requirements:
Payroll reports from your payroll provider
Payroll tax filings (Form 941)
Income, payroll, and unemployment insurance filings from your state
Documents verifying any retirement and health insurance contributions
Documents verifying your eligible interest, rent, and utility payments (canceled checks, payment receipts, account statements)
If you’re a sole proprietor, you can have eight weeks of the loan forgiven as a replacement for lost profit. But you’ll need to provide documentation for the remaining two weeks worth of cash flow, proving you spent it on mortgage interest, rent, lease, and utility payments.
Good recordkeeping and bookkeeping will be critical for getting your loan forgiven—you’ll need to keep track of eligible expenses and their accompanying documentation over the eight weeks. Your lender will likely require these documents in digital format, so take the time to scan any paper documents and keep backups of your digital records.
If you don’t have a reliable bookkeeping solution in place, Optima can do your bookkeeping for you.
What happens if I’m not approved for forgiveness?
Your lender may allow you to provide additional documentation so they can reevaluate your request. Otherwise, your outstanding balance will continue to accrue interest at 1%, for the remainder of the 2-year period. There is no prepayment penalty. You can pay off the outstanding balance at any time with no additional fees.