Paycheck Protection Program (PPP) Loan Forgiveness

First Draw and Second Draw PPP Loans made to eligible borrowers may qualify for full loan forgiveness if during the 8-to 24-week covered period following loan disbursement:

First Draw PPP Loan forgiveness terms

Employee and compensation levels were maintained;
the loan proceeds were spent on payroll costs and other eligible expenses; and
at least 60 percent of the proceeds were spent on payroll costs

Second Draw PPP Loan forgiveness terms

Employee and compensation levels were maintained as required for the First Draw PPP loan;
the loan proceeds were spent on payroll costs and other eligible expenses; and
at least 60 percent of the proceeds were spent on payroll costs.

When and how to apply

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.

To apply for forgiveness

Loans $150,000 or less
- Use the SBA Direct Forgiveness Portal
  - Benefits
    - Simplified application with a majority of loan information pre-filled
    - In most instances, no requirement to provide supporting documentation (although the borrower must maintain records for four years)
    - E-sign the application and submit directly to the SBA
    - Receive application status updates by logging into the portal
    - Live Customer Support for PPP related questions at 1-877-552-2692
  - How to Register and Prepare for the Application
    - Read the Direct Forgiveness Portal User Guide here
    - Ensure you are using a Microsoft Edge or Google Chrome browser for optimal experience

The SBA can provide Live Customer Support for its application portal and PPP related questions at 1-877-552-2692

Loans greater than $150,000
- Apply directly through St. Mary’s Bank’s PPP forgiveness portal. You will need an access code. To request an access code, please contact your St. Mary’s Bank representative or email commercialbanking@stmarysbank.com with your contact name, business name, and phone number.

Compile your documentation
- Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):
  - Business mortgage interest payments—Copy of lender amortization schedule and receipts verifying payments, or lender account statements
  - Business rent or lease payments—Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
  - Business utility payments—Copies of invoices and receipts, cancelled checks or account statements
- Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):
  - Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees
  - 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
  - Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount