PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS - UPDATED NOVEMBER 2
How to file for PPP Loan Forgiveness as a restaurant or foodservice operation
Many of you are ready to file for PPP Loan Forgiveness, but are struggling with understanding all of the guidelines regarding such matters as:
- Which of the three PPP Forgiveness Forms to use
- How to correctly complete the appropriate form
- What documentation do you need to submit to your lender with the forgiveness application
- What documentation is required to be kept on file, but not submitted to your lender
US Foods® has put together this reference to help you with all those needs, and we have CARES ACT Restaurant Operations Consultants standing by to conduct one-on-one virtual meetings with you to provide further help. Also, every Tuesday at 2 PM Central Time, US Foods conducts a CARES ACT & FFCRA National Webinar, where updates are shared and your questions can be submitted and answered.
Our Restaurant Operations Consultant team is ready to answer your questions via 1:1 consultation or on our weekly webinars. Click here to schedule a free consultation, and here to sign up for live webinars or to watch on demand.
When do you have to file for PPP Forgiveness?
Borrowers may submit a loan forgiveness application anytime before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred, and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins (source: FAQ #4 in General Loan Forgiveness FAQ's contained in the SBA/Treasury Document Loan Forgiveness FAQs released October 13, 2020).
Start here to make sure you understand all the basics before applying
for PPP Forgiveness:
- Paycheck Protection Program for Borrowers
- FAQ's from the SBA/Treasury Department on PPP Forgiveness (including details on allowed Owner Pay)
Three (3) different PPP Forgiveness Forms are available, with each designed to be used under certain qualifications.
You will need to check with your lender as to how they want you to submit your PPP Forgiveness Form, as many will require them to be submitted online. Lenders may use a Lender Equivalent Form.
For PPP Loans that are $50,000 and under - Use Form 3508S
- Note: a borrower that, together with its affiliates (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), received PPP loans totaling $2 million or more cannot use this form
- PPP Forgiveness Form (3508S) for PPP Loans of $50,000 and under
- Instructions for Forgiveness Form (3508S) for PPP Loans of $50,000 and under
- Note: 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
For PPP Loans that are above $50,000, and if you can check at least one box of three sets of qualifications (See Instructions for Forgiveness Form Below for details) - Use Form 3508EZ
For Restaurants that can't meet the criteria for using either 3508S or 3508EZ Forgiveness Forms - USE Form 3508 (Not Many Will Use this Form)
There are appeal processes for both Lender Decisions on PPP Loan Forgiveness and SBA Decisions on PPP Loan Forgiveness if needed.