SBA Paycheck Protection Program Loan Forgiveness Preparation

Here are some steps that will prepare borrowers for the forgiveness application process:

STEP 1: Determine the forgiveness application that fits your situation:

PPP loans of $150,000 or less will apply using the S Application (SBA Form 3508S). This is SBA’s shortest, most streamlined forgiveness application.

PPP loans greater than $150,000 will apply using either the Standard Application (SBA Form 3508) or the EZ Application (SBA Form 3508EZ). Please use this EZ Form Checklist to determine which application you will use.

Note: Borrowers who received a First Draw PPP Loan and a Second Draw PPP Loan must apply separately for forgiveness of each PPP loan.

STEP 2: Determine which Covered Period you will use:

The Covered Period is the period of time during which the amount you spend on payroll and non-payroll costs counts toward loan forgiveness. Certain borrowers may also be required to perform other calculations during the Covered Period such as FTE levels or salary/wage rate reductions.

The Covered Period starts on the date your PPP loan proceeds were disbursed and ends on any day you choose between 55 days after your disbursement date (8 weeks, including the disbursement date) to 167 days after your disbursement date (24 weeks).

Example:
If your PPP loan was disbursed on 4/19/2021 and you select a Covered Period of 24 weeks, your Covered Period would end on 10/3/2021.

STEP 3: Familiarize yourself with the application you will use (S, EZ or Standard):

After you decide which application fits your situation, please read the application instructions and perform the calculations contained in the SBA application. The instructions define important terms that you will need throughout the entire application process.

Listed below are links to the different applications:

Note: If you are applying with the Standard Application, you must complete SBA Form 3508 – Schedule A Worksheet before starting the online application process.

STEP 4: Gather the SBA required documentation:

The checklists below summarize what the SBA requires each borrower to submit with its PPP loan forgiveness application:

1 – Most Second Draw S Application customers will not be required to provide any documents – see note below.

Note for 3508S applications:

Customers will apply for forgiveness through MidFirst Bank. While SBA has created a Direct Forgiveness portal on its website, the MidFirst online forgiveness portal will deliver a superior customer experience using your existing PPP account login information.

First Draw Loans

First Draw 3508S applications do not require that any supporting documentation be provided to the lender.

Second Draw Loans

SBA has implemented a COVID Revenue Reduction Score which will be used in lieu of gross receipts documentation for most (but not all) customers. The MidFirst online forgiveness portal will indicate whether or not each customer must calculate their gross receipts reduction.

See 3508S application for documents you are required to maintain and record retention requirements.

STEP 5: Complete your Forgiveness Application

MidFirst continues to accept forgiveness applications for PPP loans. Once you have received your email invitation, you may start your application using the link below.

If you have employees, the forgiveness application cannot be completed without state and federal payroll tax documents reported or that will be reported (or equivalent third-party payroll processor reports) for the periods that overlap the Covered Period. 

Example:
If your PPP funds were disbursed on 4/19/2021 and you select a Covered Period end date of 10/3/2021 (24 weeks), you must provide payroll tax filings for Q2 2021, Q3 2021, and Q4 2021.

Borrowers whose Covered Period is complete but cannot provide either third-party payroll processor reports or IRS and state filings for periods that overlap the Covered Period will be allowed to begin the forgiveness application process, but MidFirst cannot submit their application to SBA until these documents are provided.

Apply for PPP Loan Forgiveness