Skip to Main Content

Existing PPP Forgiveness Applicants

If you’ve already started a PPP Forgiveness application with us, you may return to your application by logging into our PPP Portal.

PPP Portal

*The above discussion and the following FAQs have been provided for informational purposes only, and are not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors in addressing any of the matters discussed herein. Please note, the SBA and the Department of Treasury may be considering changes to the PPP affecting loan forgiveness.

PPP Forgiveness FAQs

In addition to the FAQs below, you may reference the SBA’s FAQs for PPP Borrowers and Lenders.

Collapse All Expand All

Where do I request loan forgiveness for my PPP loan?

If you have received a PPP loan through Byline Bank you must submit an application for forgiveness for that PPP loan through Byline. Please use the Apply Now button above to log in to our PPP Forgiveness Application portal.

Should I begin to fill out the Forgiveness Application that’s available on the SBA website?

No. Please use the Apply Now button above to log in to our PPP Forgiveness Application portal.

Is loan forgiveness automatic?

No. You must submit an application for forgiveness through Byline. Please use the Apply Now button above to log in to our PPP Forgiveness Application portal.

What are eligible forgiveness expenses?

  • Payroll costs, as defined by the SBA (the PPP Flexibility Act revision states at least 60% of loan proceeds must be used for payroll costs for a loan to be fully forgiven)
  • Mortgage interest (for mortgages in existence on or before 2/15/20)
  • Rent (lease agreements in place on or before 2/15/20)
  • Utilities (servicing on or before 2/15/20)
  • Worker protection costs related to COVID-19
  • Uninsured property damage costs caused by looting or vandalism during 2020
  • Certain supplier costs and expenses for operations

When must I apply for loan forgiveness or start making payments?

You may submit a loan forgiveness application at any time on or before the maturity date of the loan if you used all the proceeds for which you are requesting forgiveness. However, if you are applying for forgiveness of a Second Draw PPP Loan over $150,000, you must submit the loan forgiveness application for your First Draw Loan before or simultaneously with your loan forgiveness application for your Second Draw PPP Loan.

If you do not apply for loan forgiveness within 10 months after the last day of the maximum covered period of 24 weeks, the loan is no longer deferred and you must begin paying principal and interest.

Do I have to repay the part of the loan that wasn’t forgiven?

Yes. The outstanding principal and interest on that portion of the loan which was not forgiven must be repaid based on SBA guidelines.

When do I need to use the loan proceeds to be eligible for loan forgiveness?

The PPP Flexibility Act extended the covered period a borrower may use funds to within 24 weeks of loan disbursement (i.e., when loan funds were deposited into your account).

When does the period begin for determining “payroll costs?”

The loan forgiveness covered period is the period beginning on the date the loan proceeds are disbursed and ending on any date selected by the borrower that occurs during the period (1) beginning on the date that is eight weeks after the date of disbursement and (2) ending on the date that is 24 weeks after the date of disbursement. Because the Economic Aid Act allows borrowers to select their own loan forgiveness period (between 8-24 weeks), the rules eliminate the alternative covered period originally provided for payroll costs.

What is included in “cash compensation” for eligible payroll costs?

The Instructions to Schedule A to the Application define “cash compensation” to include “the sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period.

What non-cash components are considered eligible payroll costs?

According to Schedule A of the Application, the following costs are considered eligible payroll costs:

  • Employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after-tax contributions by employees.
  • Employer contributions to employee retirement plans on behalf of employees, but excluding any pre-tax or after-tax contributions by employees.
  • Employer state and local taxes assessed on employee compensation, but excluding any taxes withheld from employee earnings.

What if a borrower’s eligible non-payroll costs are incurred during the Covered Period, but are required to be paid after the Covered Period ends?

Eligible non-payroll costs that are either paid during the Covered Period or “incurred” during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period, are eligible for loan forgiveness.

How are FTEs calculated for purposes of the FTE headcount reduction calculation?

According to the application, an average full-time equivalent (“FTE”) employee headcount during the Covered Period or the Alternative Period is calculated as follows:

  • For each employee, the borrower is required to divide the average number of hours paid per week by 40, and round the total to the nearest tenth (the maximum for each employee is capped at 1.0); or
  • A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may be used at the election of the borrower.

What documentation is needed for payroll, eligible non-payroll expenses, and FTEs?

Please reference our PPP Forgiveness Documentation guide, or the PPP Loan Forgiveness Application Form 3508EZ for a description of the documentation needed.

What documentation is needed for the SBA to audit borrower certifications with respect to PPP loans above $2million?

At this time, the SBA has issued no guidance that outlines how it will “audit” relevant borrower certifications for loans above $2million.

What certifications need to be made when submitting the forgiveness application?

The borrower is required to make a variety of certifications in submitting the Forgiveness Application, including but not limited to the following:

  • Certification that the dollar amount for which forgiveness is requested was used to pay costs that are eligible for forgiveness and that, if the funds were knowingly used for unauthorized purposes or the borrower knowingly makes a false statement to obtain forgiveness, the federal government may pursue recovery of loan amounts and/or civil or criminal fraud charges.
  • Certification of the borrower’s understanding and agreement that the SBA may request additional information for the purposes of evaluating the borrower’s eligibility for both (i) the PPP loan and (ii) loan forgiveness.

Also, the borrower must acknowledge that if it fails to provide information requested by the SBA, it may result in either a determination that the borrower was ineligible for the PPP loan or a denial of the borrower’s loan forgiveness application.

How long must I keep my PPP loan records?

Borrowers that received loans of $150,000 or less must retain payroll records for 4 years following loan forgiveness, and all other records for 3 years following submission of the forgiveness application. All other borrowers must retain PPP loan documentation for six (6) years after the date the loan is forgiven or paid in full.

Also, the borrower must acknowledge that if it fails to provide information requested by the SBA, it may result in either a determination that the borrower was ineligible for the PPP loan or a denial of the borrower’s loan forgiveness application.