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PPP Forgiveness

SBA Paycheck Protection Program

PPP Loan Forgiveness

Under the SBA's Paycheck Protection Program (PPP), loans may be forgiven if borrowers use the proceeds to maintain their payrolls and pay other specified operating expenses, including interest on mortgages, rent and utilities. Currently, at least 60% of the forgiven amount must be used for payroll costs.
 

Latest News, October 8, 2020:  Simplified Loan Forgiveness Application Released

The Small Business Administration, in conjunction with the Treasury Department, released a simpler PPP loan forgiveness application, SBA Form 3508S, for loans of $50,000 or less.  According to the form instructions, SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. Borrowers that use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages.

The new form information will be added to Civista’s PPP Forgiveness Online Portal in the near future and will be available for qualified borrows to use after receiving your invitation to apply from Civista.  In the meantime, borrowers with PPP loans $50,000 or less are encouraged to review the Form 3508S Instructions for guidance in preparing their supporting documentation.

For more information about PPP loan details visit civista.bank/paycheckprotection.
 
 

Civista PPP Forgiveness Portal IconRequesting PPP Loan Forgiveness

PPP Forgiveness Online Portal
Soft Opening

  • In order to provide a smooth experience for each borrower, invitations to the portal will be staggered over 8 weeks beginning September 28, 2020.
  • No paper applications!  Our online portal guides borrowers through submitting the required information for the applicable SBA form.
  • Borrowers will upload their supporting document by expense category directly into the portal to complete their online application.
 
 

 

PPP loan Forgiveness Process 

PPP Forgiveness Status Bar example

  1. Invitation to Apply:  Invitations will be sent via email from news@marketing.civista.bank with a link to Civista’ PPP Forgiveness Online Portal.  A step-by-step Guide to the portal will accompany your invitation.

  2. Submit Your Information:  Log in to the secure portal with the authorized signer’s email, business’s (borrower’s) Tax ID and loan amount, then follow the screen prompts to enter your forgiveness information. 
     
    Good news!  Some fields will automatically populate using data from your original PPP loan application.
     
  3. Upload Supporting Documentation:  Upload the required documentation supporting the forgiveness information.    

  4. Bank Review:  The bank will review the submitted information and notify you when the application is ready for your electronic signature.  You may be contacted for additional information. 

  5. E-Sign Application:  Once signed through DocuSign, we will submit your forgiveness application to the SBA for final approval.  

  6. SBA Review:  The SBA has up to 90 days to approve.  We will be notified with their decision:  Full Forgiveness, Partial Forgiveness, or Request for Additional Information.


PPP Forgiveness Supporting Documentation

The SBA Standard 3508, EZ, and S Forms provide detailed instructions for the required documentation. Here are some helpful tips for payroll and non-payroll expenses.  

Frequently Asked Questions

You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using this SBA Form 3508S if the total PPP loan amount you received was $50,000 or less.

However, a borrower that, together with its affiliates, received PPP loans totaling $2 million or more cannot use this form. (See 85 FR 20817 (April 15, 2020) regarding application of SBA’s affiliation rules and the exemption of otherwise qualified faith-based organizations from SBA’s affiliation rules.)

The SBA issued a simplified PPP Loan Forgiveness Application called the 3508EZ Form on June 16, 2020. This form is designed to reduce the required calculations for those that qualify. In order to qualify, you must:

  • Be self-employed AND have no other employees; OR
  • NOT have reduced salaries of employee wages by more than 25%, and must not have reduced number of hours; OR
  • Have suffered a reduction of business activity as a result of health directives related to the COVID-19 pandemic and did not reduce employee salaries or wages by more than 25%.

If you, the borrower, do not qualify under one of the three criteria, you must use the Standard 3508 Form.

The deadline to apply for PPP Forgiveness will vary by borrower, depending on the Covered Period they have chosen (8 weeks or 24 weeks). As long as the borrower submits their loan forgiveness application within ten months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by the SBA. If a borrower doesn’t apply for forgiveness within the 10 month period, amortization will begin in the 11th month.

For example: Using a 24 week Covered Period, if the PPP loan is disbursed on April 20, 2020, the 24 week Cover Period ends on October 4, 2020. If the borrower does not submit a loan forgiveness application to their lender by August 4, 2021, the borrower must begin making payments on or after August 4, 2021.

Yes, the borrower will receive a payment notice in advance of any payment due.  Repayment is only required if the loan is not fully forgiven or you do not apply for forgiveness before the deadline.

The Form 3508 Instructions and Form 3508EZ Instructions provide important eligible payroll and non-payroll expense information.  In addition, you’ll find the required documents needed to verify these expenses.

In addition to the supporting documentation that is required to be submitted with the borrower's forgiveness application, there are other documents that must be maintained by the borrower.

PPP Schedule A Worksheet or its equivalent and the following:

  1. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary.
  2. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 2; specifically, that each listed employee received during any single pay period in 2019 compensation at an annualized rate of more than $100,000.
  3. Documentation regarding any employee job offers and refusals, refusals to accept restoration of reductions in hours, firings for cause, voluntary resignations, written requests by any employee for reductions in work schedule, and any inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020.
  4. Documentation supporting the certification, if applicable, that the Borrower was unable to operate between February 15, 2020, and the end of the Covered Period at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. This documentation must include copies of the applicable requirements for each borrower location and relevant borrower financial records.
  5. Documentation supporting the PPP Schedule A Worksheet “FTE Reduction Safe Harbor 2.”

Please visit the SBA PPP Loan Forgiveness Application Instructions to learn more about documentation requirements.

The Borrower must retain all documentation in its files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request.

Please visit the SBA PPP Loan Forgiveness Application Instructions to learn more about documentation requirements.

 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

PPP Forgiveness Weekly Email Series

To keep customers up-to-date on the latest PPP Forgiveness news from the SBA and Civista, weekly emails are disseminated to PPP borrowers. See below for previous PPP Forgiveness Emails. 
 
 

Other Helpful Resources

 
 

Questions about PPP Loan Forgiveness?

 
This information is based upon current program information as of 10.26.20. 
Terms and conditions are subject to change.