PPP Loan Forgiveness

PPP Loan Forgiveness

Since the inception of the SBA Paycheck Protection Program (PPP), there has been a lot of communication from the Treasury with updates and ongoing clarification to the program. See a previous post on the program overview here.

While the details related to the forgiveness portion may still be evolving, we encourage customers to visit the US Treasury Cares site for the most recent information and to review the information contained in the forgiveness application. Download PDF of forgiveness application.

AMNB Forgiveness Process

Effective March 5, 2021, we will begin accepting PPP loan forgiveness applications for loans of any size. 

In order to make the forgiveness process as smooth as possible for our customers, we will provide you with a secure portal that will guide you through the steps and documentation necessary for completing your application for forgiveness. The basic steps are summarized below.

1. AMNB sends portal link to customer to complete online form (simpler than SBA 3508 form)
2. Customer uploads supporting documentation (e.g. payroll files)
3. Calculator automatically calculates amount of forgiveness (based on input to online form)
4. AMNB creates the 3508 form and an email is generated for customer to  e-sign
5. AMNB conducts good faith review of the 3508 form and supporting documents
6. AMNB sends to SBA (no further guidance issued to date)
7. Upon SBA approval, the bank has 60 days for forgiveness

Eligible Expenses for Forgiveness

Loan Forgiveness Checklist

General Information Needed for PPP Loan Forgiveness Application

• Business Legal Name, Address, and Contact Information (Same as Borrower Application Form)
• SBA PPP Loan Number (E- Tran number assigned by SBA)
• Lender PPP Loan Number (Loan number assigned to PPP loan by Lender)
• PPP Loan Amount
• Employees at Time of Loan Application and at Time of Forgiveness
• PPP Loan Disbursement Date (First date of PPP loan proceeds)
• EIDL Advance Amount and Application Number (if applicable)
• Payroll Schedule
• Covered Period (Same as PPP loan disbursement date)
• Alternative Payroll Covered Period

FTE Documentation

• Payroll tax filings reported (Form 941)
• State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported

Payroll Documentation

• Bank account statements
• Payroll tax filings (Form 941)
• State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported
• Payment receipts, canceled checks, account statements documenting amount of any employer contributions to employee health insurance, retirement plans, etc.
• If borrower applied to PPP as a contractor, sole proprietor, or partnership: 2019 1099-MISC forms OR Schedule C OR Schedule K-1 to verify owner compensation replacement