PPP Forgiveness 


We’re happy to have helped businesses across Northeast Ohio to receive PPP funding.
 

Thank you for working with First Federal Lakewood to secure your funds through the SBA’s Paycheck Protection Program (“PPP”). As you are likely aware, the PPP allows a portion, or all, of your loan and accrued interest to be forgiven if the proceeds were used for eligible payroll and non-payroll costs. 
 
Prior to January 19, 2021, the SBA permitted PPP borrowers to use one of three loan forgiveness applications, including Form 3508 (the “Full Application”), Form 3508EZ (the “EZ Application”) and Form 3508S (the “Simple Application”).  The EZ Application simplified the forgiveness process for certain borrowers, while the Simple Application further streamlined the process for all PPP loans of $50,000 or less. 
 
If you have already applied using one of these forms, your application will be processed, and you do not need to take any action.
 
On January 19, 2021 the SBA released updated and revised forms for each of the Full, EZ and Simple applications.   The 3508S - Simple Application is now available to all borrowers who have loans of $150,000 or less and does not require the borrower to submit supporting documentation beyond the application itself.
 

PPP Loan Forgiveness

We are pleased to assist you with the loan forgiveness step of the SBA Payroll Protection Program (PPP).   As you know, the PPP allows for all or a portion of the loan and accrued interest to be forgiven if the proceeds are used for eligible payroll and certain non-payroll costs.  

If you need assistance completing the Application, we recommend contacting your accounting or tax advisor. 

As always, you may contact your relationship manager or businessrelief@ffl.net with any questions.

Get Started

To begin the loan forgiveness process, we recommend you print and review a copy of the applicable January 19, 2021 revised application and instructions relevant to you. 
 
Links to the Full, EZ and Simple Applications, as revised January 19, 2021, along with instructions can be found below:
 
For borrowers with loans less than $150,000, please use the 3508S application form.
 
Form 3508S Application and Instructions
 
 
If your PPP loan is over $150,000 read below to see which forgiveness application will work for your business, the 3508EZ or 3508.
 
Form 3508EZ Application and Instructions

  1. self-employed with no employees; or
  2. can certify they have not reduced the number of FTE employees AND have not reduced salaries or wages for any of their employees by more than 25%; or
  3. can certify they have experienced a reduction in business activity as a result of federal health directives related to COVID-19 AND have not reduced salaries or wages for any of their employees by more than 25%.
 
Form 3508 Application and Instructions
  1. the loan amount is over $150,000; and
  2. had a salary or FTE reduction of greater than 25%

 
If you need assistance with completing the Application, we recommend contacting your accountant, tax advisor, or attorney. Your payroll provider may be able to assist with the required payroll and employee information.
 
Additional resource information may be found at the SBA’s PPP webpage.
 
In order to expedite the processing of your Application, we strongly encourage you to submit your Application using First Federal Lakewood’s online process via the option below.  


 
Apply Now
 

Before starting the online process, we recommend that you have all of the information required in the Application completed, including supporting documents (if necessary). 
 
Submit Application 
 
The process allows you to:

  • Upload your already completed Application (recommended in PDF)

  • Upload all supporting documents (recommended in PDF)


All three forms of the Application may be submitted through this portal.  Please note that if you have a loan for $150,000 or less, you may use Form 3508S which does not require you to submit any supporting documentation as part of your Application.  Documents and records are still required to be maintained by all applicants. 
 
Upon submission you will receive an email confirmation that your Application has been received. Processing time will be dependent on the volume of Applications received by First Federal Lakewood. The CARES Act allows the Bank 60 days to approve an Application once a complete Application has been submitted. The amount of loan forgiveness is not final until approved by both First Federal Lakewood and the SBA.


Tips to make sure you application is complete

  • Loan Numbers - The SBA and Bank Loan Numbers can be found on the first two lines of the first page of the Paycheck Protection Promissory Note. 
  • Disbursement Date – you should check your bank account and use the date that the bank wired you the PPP loan funds.
  • Payroll Documents – in addition to any internal payroll documents a Borrower must provide either a third-party payroll report or a bank statement showing payment of the payroll funds.  This applies for both the FULL and the EZ Applications.
  • Nonpayroll Documents – borrowers must provide documentation that verifies the existence of the obligation (mortgage, rent, utility) prior to February 15, 2020.  This could include February mortgage statements, lease contracts, cancelled checks or invoices.
  • Supporting Worksheets – please provide any internal worksheets which support the payroll and nonpayroll amounts included in your application
  • Select a 24-week Covered Period – by doing so, this allows you to include more costs.  Applications may be submitted at any time prior to 24 weeks but you should still input 24 weeks as your Covered Period.  In addition, owners can receive the full 2.5 months of their 2019 income (up to $20,833) if the 24-week Covered Period is selected
  • Start with Payroll Costs – if your payroll costs exceed your loan amount you do not need to include other nonpayroll costs.  In addition, if cash compensation exceeds your loan amount you do not need to include health insurance or retirement costs
  • Provide Owner Tax Returns – all owners who are included in payroll costs must provide 2019 tax documents (W-2, Schedule C, K-1, etc.) 
  • Provide Complete Payroll Documentation – payroll must be supported by the following documents for the Covered Period:
    • Forms 941 for each quarter in 2020
    • Third-party payroll report OR Internal payroll report plus bank statements validating payment of payroll
  • Provide Complete Documentation for All Other Costs – generally all other costs need to be supported by:
    • Invoices, receipts AND validation of payment (bank statements, cancelled checks, etc.)
    • Mortgage, rent, lease and utility payments must also include documentation that the obligation was in existence prior to February 15, 2020 (bank statements, cancelled checks, lease agreements, etc.)


The Process

Once the Loan Forgiveness application is complete and submitted, our PPP team will review, approve, decline, or amend the Loan Forgiveness request. The bank has 60 days from the date the completed application is received to complete these steps. 

If approved, the application and documentation will be forwarded to the Small Business Administration (SBA) for quality review and final adjudication. If approved, the SBA will transfer the forgiven funds to First Federal Lakewood for deposit into the borrower’s account. As of now, the SBA estimates the transferring the funds to banks within 90 days of receipt of the information. 

 
If a PPP loan is not forgiven in full, any remaining balance due on the PPP loan must be repaid by the borrower. FFL will notify the borrower of the loan forgiveness amount remitted by SBA and the date on which the borrower’s first loan payment is due.
 
The borrower must repay the remaining loan balance by the maturity date of the PPP loan (either two or five years).
 

Please note that First Federal Lakewood has retained ProBank, a third-party, to assist in processing these applications. Borrowers may receive emails from PPPLoanTeam@ProBank.com requesting additional information and/or clarification. To ensure emails do not end up in your Spam or Junk folder, you may want to add the domain name (probank.com) and the above email address to your “Approved Senders List” (also known as “white-listing”). 

Resources

Our team will review your Loan Forgiveness application and as the reviewer, cannot assist you in completing your application. We suggest you contact your accountant or legal counsel with questions related to your specific PPP loan and the Loan Forgiveness application. 

If you have general questions or want more detail on the loan forgiveness process, calculations and forms visit:

Main SBA PPP Site
Borrower and Lender Responsibilities
Loan Forgiveness Requirements 
SBA Loan Forgiveness Q&A
PPP Customer Chat Q&A


We look forward to providing the tools and information you need to maximize PPP Loan Forgiveness. Please check this page regularly for updates.