How to Apply for
PPP Loan Forgiveness
Borrowers can apply for forgiveness once they have used all loan proceeds for which the borrower is requesting forgiveness. 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 need to begin making loan payments to Point West.
2. Compile your documentation
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.
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.
Point West may request additional documents during its review of a borrower’s forgiveness application.
4. Continue to communicate with Point West throughout the process
Point West will review applications in the order they are received and how complete the submission is (i.e., missing supporting documents could delay your application’s review). Due to the number of applications that will need to be processed, it may take up to 15 business days (or 3 weeks) for Point West to review your application. We appreciate your patience as we work to process applications as quickly as possible.
If the SBA undertakes a loan review of your loan, Point West will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Point West will notify you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.
If applicable, the SBA will deduct any EIDL advance amount you have received from the forgiveness amount remitted to the Lender, as required by section 1110(e)(6) of the CARES Act. Borrowers are required to retain certain documents for six years after the date the loan is forgiven or repaid in full.