RECOVER + REBUILD — Relief services

forgivenss guide

PPP Forgiveness Application Guide: First and Second Draw Loans

Please review this Application Guide in its entirety before applying for loan forgiveness on your PPP loan. There are important considerations and steps to understand before you apply. This guide will outline all of the steps, requirements, and documentation you need in order to successfully submit your forgiveness application. 

IMPORTANT NOTE: The information below is accurate as of June 2021.  Please note the details can change based on any further guidance from the SBA.

Step 1: Understand How to Apply for PPP Forgiveness

Here we will answer your most frequently asked questions about how and when you should submit your Forgiveness application.

You will apply for PPP Forgiveness by using our online application portal similar to the one you used to complete your PPP Application. We will send a weekly email with your unique link to complete your Forgiveness Application starting July 2, 2021. The emails will be sent to you from: notifications@appmail.venturesgo.com. It’s important that you use Google Chrome as your web browser or you will likely run into technical difficulties. 

All of our PPP communications will come from one of two places: notifications@appmail.venturesgo.com, or any email address with an @cdcloans.com domain. If you are still concerned, please send an email to pppinfo@cdcloans.com and we will help you identify what is legitimate.

If you haven’t yet received the email from notifications@appmail.venturesgo.com or if you’re concerned that it has been lost or deleted, please check your spam folder. The link will be sent to the same email address that was used to sign the loan documents.  If you are still concerned please contact our team by emailing the PPP Forgiveness inbox at pppinfo@cdcloans.com.

  • When at least 8 weeks have passed since your PPP loan was funded
  • After you have spent 100% of your PPP Loan on eligible expenses; at least 60% on payroll expenses, and no more than 40% on eligible non payroll expenses
  • You have collected all necessary documentation to verify your eligible expenses spent throughout your covered period; and
  • If applying for Forgiveness of your PPP Second Draw Loan, you have supporting documentation to show that you had at least a 25% reduction in gross receipts from 2019 to 2020 (you are allowed to compare full years or at least one quarter).

You have 10 months from the end of your covered period to apply for Forgiveness. If you do not apply for Forgiveness within 10 months following the end of your covered period, you will be required to start making principal and interest payments starting month 11.

If your primary contact person, email address or mailing address has changed since you first applied for PPP, then please send an email to pppinfo@cdcloans.com with the following information:

  • Your PPP Loan #
  • What information needs to be updated
  • Reason for updating the information (i.e. Did someone pass away? Did someone leave the company? Did you move locations? Did you sell the business?) 

Step 2: Begin the Application Process

You are ready to apply for forgiveness but still have questions about the process, where to find your loan number, and which form you should complete.

Yes. Unless we have made arrangements with you to complete the application in another format, we will not accept your application unless it has been submitted using our online application portal.

  • If you have only received one PPP Loan: check your PPP Note that you signed at funding. You will enter that SBA Loan # to access your Forgiveness Application through our online portal. 
  • If you received both a PPP First Draw AND Second Draw Loan: Use the SBA Loan Number located on your Promissory Note from 2020 to get access to your First Draw Forgiveness Application. If you are applying for Forgiveness of your Second Draw Loan, use the SBA Loan Number located on your Promissory Note from 2021.

If Your Loan is $150,000 or Less – Use SBA Form 3508S

  • SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. 
  • SBA Form 3508S does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process.
  • Loans $50,000 or less are exempt from the requirement to maintain employee and compensation levels in order to receive forgiveness.

For loans greater than $150,000, you have the option of using SBA Form 3508EZ or SBA Form 3508.

  • If you answered no to the eligibility question on the Form Tab of our online forgiveness portal, then you will be presented with a set of statements. If you can answer “yes” to either of these statements, then you should be completing form 3508EZ. Most borrowers qualify to use this form. Alternatively, if you answered “no” to both statements, then you must complete the original 3508 Form. 

Step 3: Complete your Forgiveness Application

A portion of your 3508 Form will be pre-populated for you in our online system. You are responsible for calculating, reviewing and signing the form prior to submitting. 

Each SBA form has different requirements and instructions. The instructions for computing calculations, along with working definitions of each required field are outlined on the last few pages of each 3508 SBA Form. Here are links to the set of instructions and definitions for each form:

You DO NOT need to fill out these PDF forms outside of our online application portal. Our online portal will guide you through the preparation of the form. These links are for you to thoroughly review the instructions of the form prior to submitting the application. 

Unfortunately, as your lender CDC Small Business Finance cannot provide you with direct business advice or consult with you on the preparation of your forgiveness application. We highly recommend that you consult your accountant, attorney, or business advisor before applying for forgiveness. These resources can provide valuable insight into the forgiveness requirements, calculating eligible expenses, and properly documenting your eligible expenses throughout your covered period. 

Eligible expenses for payroll includes Cash Compensation, Employee Benefits, and Owner Compensation spent during your 8 to 24 week covered period. Documentation required includes:

  •  Bank account statements or third-party payroll reports from your covered period
  • Tax forms for the periods that overlap with the Covered Period:
    • Payroll tax filings reported to the IRS (typically, Form 941); and
    • State quarterly business and individual employee wage reporting and unemployment insurance tax filings 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 you included in the forgiveness amount.

Eligible mortgage interest includes payments of mortgage interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020. Documentation required includes:

  • Copy of lender amortization schedule and receipts; or
  • Cancelled checks verifying eligible payments from the Covered Period

Eligible expenses for rent includes business rent or lease payments pursuant to lease agreements for property in force before February 15, 2020. Documentation required includes:

  • Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period

Eligible expenses for utilities include business payments for a service for the distribution of electricity, gas, water, telephone, or internet access for which service began before February 15, 2020. Documentation required includes:

  • Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.

Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments

Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments, and verification that costs were related to uninsured property damage due to public disturbance vandalism or looting that occurred in 2020

Copy of contracts, orders or purchase orders in effect at any time before the Covered Period (except for perishable goods), and copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments

Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments, and verification that expenditures were used to comply with COVID-19 guidance

If you are submitting your First Draw Forgiveness Application, you will not need to submit any documentation and will only be asked to certify a simple form.

If you are submitting your Second Draw Forgiveness Application, you will provide supporting documentation to show that you had at least a 25% reduction in gross receipts from 2019 to 2020 (you are allowed to compare full years or at least one quarter). No additional documentation is required. 

Yes, before submitting your 3508 form you need to do the calculations, initial the certifications and sign the 3508 form. If we get a submitted form that is not initialed or signed, your application will be moved to the end of our review queue and the process will take longer to complete.

Step 4: Submit your Application through our Online Portal

We want you to have peace of mind knowing your application is being processed.

Nope! If you completed each Tab in the online application portal, you are doing everything right. In order to help our employees process your application with speed and accuracy, please make sure that the 3508 Form you upload into the “Upload” Tab has been initialized correctly and signed. 

To ensure that you properly submitted your application, you can try logging back into the Forgiveness portal using the link we sent you from notifications@appmail.venturesgo.com. If your application was submitted properly, you will see a pop-up message that states you will be hearing from us shortly. If you log in and are able to see or edit your 3508 Form, then you will need to re-submit the application.

Step 5: Please Hold Tight During the Review Process!

All done! Now what?

A team member at CDC Small Business Finance will review the forgiveness application for completion and accuracy, and then submit to the SBA. If we notice any errors or corrections that should be made, we will reach out to you to get the form amended prior to submitting the application to SBA for their final approval.

Please be patient as we review your forgiveness application. This process could take between 1 week to 6 months. Per regulations, CDC Small Business Finance has 60 days to review and submit the forgiveness application to SBA. Then, the SBA has up to 90 days to provide a final forgiveness decision.

SBA will not provide a timeline for its review, so we ask that you remain patient while the process occurs. We will be in contact with any updates provided. Once we receive notice from the SBA that the forgiveness application has been reviewed, we will provide you with email confirmation of the forgiven amount via notifications@appmail.venturesgo.com.

Our goal is for all borrowers to obtain the maximum forgiveness amount they are eligible for and we will attempt to work with you to ensure this.

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