Get Ready for the PPP Forgiveness Application

Get Ready for the PPP Forgiveness Application

Read This First

Forgiveness Deadlines are Approaching

If you can believe it, we’ve been living with PPP for more than a year now. We hope it helped your company get through the worst of the pandemic, and we thank you for turning to Pinnacle in your time of need.

Now it’s time to get forgiveness for your first round loan so you don’t have to pay it back.

Early in the process, we advised you to wait before applying for forgiveness because the rules were still in flux. Since then, the application has gotten a lot simpler—especially for loans of $150,000 or less—and the SBA has adjusted it further to reflect new rules passed in the many stimulus packages.

We don’t anticipate any more of these changes. This is very likely as good as the process is going to get. There’s no more reason to wait to apply for forgiveness on your first round PPP loan.

Explore everything on this page and on the tabs above to learn more about the process and take a look at the tools we have available. We've also answered a few of the most frequently asked questions specifically about first round forgiveness and deadlines. If you need more, your financial advisor can help. They are just a phone call away.

Thank you again for your partnership. We want to get you across the finish line so you can put PPP in the rearview.


Before you get started, we should go over a few very important things that will determine how you proceed.

Please read everything on this page carefully and follow all of the instructions. It could save us both a lot of time down the road.

After this tab, go through the rest of the tabs on this page in order. They include some detailed instructions and walk-through videos you should watch before you start. Trust us, they’ll help.

On the last tab, we’ll take you to the application and get to work.

Remember: With just a few rare exceptions, there's no rush to apply. It's better to take our time to make sure we all get it right. The deadline to apply is 10 months after the end of your covered period. For example, if your covered period ended on October 1, 2020 you have until August 1, 2021 to apply for forgiveness before loan repayment begins. 

How Forgiveness Works
The rules have changed often, but we’ve kept you up to date on how forgiveness works and what you need to do to prepare. You can review the basic overview of forgiveness using the link below.

What You Need to Know About PPP Forgiveness

PPP Forgiveness FAQ
 

Three Applications 
There are three different forgiveness applications: 3508(full), 3508EZ, and 3508S, which is for loans of $150,000 or less. The EZ application is short and easy to complete. The full application is longer, more complicated and includes more forms and schedules to fill out. The 3508S application is for loans of $150,000 or less and is the simplest of all, requiring very little information and, for first round loans, no documentation.

The application you can use depends on the size of your loan, how your business has been affected by the pandemic and the decisions you made around staffing levels and wages. 

It is important to note that if you and your affiliates took more than one PPP loan for more than one business, you cannot use the 3508S application if those loans total more than $2 million for either the first or second draw loans.

All applications require you to collect and submit the right documentation. Here is a list of what you will need.

Most borrowers will be able to use either the EZ or 3508S application, but you should be absolutely sure which ones applies to you before you start. Our online application system will help you decide which one to use.

We have also created two separate calculator tools to help you fill them out: one for the EZ and another for the full. The 3508S application for loans of $150,000 or less does not require a calculator to be uploaded. They will ask you for some basic financial information around payroll and non-payroll expenses and then give you the numbers you need for the application.
 

How do I know if I need to use the EZ, full or 3508S?
The online application starts with a few questions designed to help you choose the right application. Depending on your answers, it will automatically choose the right one for you.

You can use the 3508S application if your PPP loan was $150,000 or less and if the total of all PPP loans to you and your affiliates was under $2 million for either the first or the second round.

In general, you can use the EZ application if you:

  • Can certify and prove that your employment levels stayed the same, or
  • Can certify and prove that reductions in employment levels were due to a drop in business because of the pandemic, or
  • Can certify and prove that wages stayed the same or weren’t reduced by more than 25 percent
  • Are a self-employed individual, independent contractor or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the loan application form

Before you get started, think through these questions. If you can’t certify and prove one of the above points, go ahead and use the full application.

 

If the EZ and 3508S cover many borrowers and are a lot easier to fill out, why can’t I just start with that one?
It’s tempting to try to use an easy application first, but you need to be absolutely sure before going down that road. After you submit your application, we will review it. If we find that you have filled out the EZ but don’t actually qualify for it, we’ll have to ask you to start over and fill out the full. Save yourself time and avoid raising any red flags in your application process. If you think you need the full, go ahead and use it.
 

Click the next tab to see how the application will work. 

 

Need help or have questions? You can reach out to your financial advisor or call our Small Business Client Service Center.


As a reminder, the certifications as well as the burden to show eligibility and entitlement to forgiveness falls solely on the borrower and the owners thereof per the CARES Act, rules and guidance issued thereunder, the applications, and our loan docs., as do the significant penalties if any issues arise with regard to a borrower’s participation in the PPP program.  Accordingly, we encourage you to review the PPP rules and regulations on the Treasury website.  Additionally, the tax rulings on forgiveness, including announcement 2020-12,  are included on the IRS website.

Legal Disclaimer: The information provided herein does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information contained herein is subject to change and may not constitute the most up-to-date information. It is recommended that you contact your attorney to obtain advice with respect to any particular legal matter, and you should not act or refrain from acting on the basis of information contained herein without first seeking advice from your attorney. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. All liability with respect to actions taken or not taken based on the contents hereof are hereby expressly disclaimed. The content herein is provided "as is;" no representations are made that the content is error-free.

How the Application Works

Our online application system is simple, streamlined and intuitive. It will help you determine whether to use the EZ, full or 3508S application and then walk you through all of the fields you need to fill out.

It will also help you upload the required documentation, let us review what you’ve submitted, allow you to sign it electronically and automatically submit your application to the SBA.

The videos below will walk you through the complete process for the EZ and the full, including how to use the calculator tool and fill out the application. We’ve produced different videos for the EZ and full, so choose the one that applies to you by clicking the video titles below.

How the Process Works

Step 1: Open the application and fill in the look-up information. The primary email address you used on the loan application, your company’s tax ID number and your PPP loan amount. This will look up your loan in the system and pre-fill a lot of the information. Note that the email address you need is the one attached to the person listed as the primary on your loan.

At this point in the application, you will be able to edit your phone number, physical address and the loan's primary email address. Click here for instructions on how to do that.

Step 2: Answer the first few questions. This will help you figure out which application to use, the full or the EZ. If your PPP loan is $150,000 or less, the 3508S application will automatically pull up.

Step 3: Open the corresponding calculator tool and complete it. This will help you determine the final figures that need to be entered into the application. This only applies if you’re using the EZ or full application. The 3508S application for loans of $150,000 or less does not require a calculator.

Step 4: Finish the application. Reopen your browser window and follow the steps for completing the rest of the application. At the end, you’ll see how much forgiveness you are eligible for and how much the remaining loan balance will be, if any. From here, you can save it to come back later or submit it to move on.

Step 5: Upload your documentation. The EZ and Full PPP forgiveness applications require you to submit supporting documents. The 3508S application does not require documentation for first round PPP loans. Once you have filled out the application, the system will take you to a new screen where you will upload the documentation that verifies your information. If you are using the EZ or full application, this includes uploading your completed calculator tool using the "Other" field.

Step 6: Pinnacle reviews it. We will receive your application and examine your information and documents. If we have questions or see issues with anything, we’ll make a note of it in the system, and you will get an alert asking you to fix it. You’ll be able to access your application at this time and make any necessary edits. That includes re-uploading documents that may have had problems the first time. You will also receive some automated emails during this process updating you on progress. If you receive an email asking you to reupload documents, click the link in the email to do so.

Step 7: Sign your application. Once our review is complete, you’ll get another alert asking you to digitally sign the documents. We’ll need signatures from you or your authorized representative.

Step 8: Pinnacle submits it to the SBA. Once everything is verified and signed, we will push your application to the SBA for a decision. If your application is approved, you will receive verification and documentation via email. If any loan balance remains after the forgiveness decision is given, your financial advisor will be in touch soon after to talk through your next steps.

 

Click the next tab to learn more about the calculator tools.

 

Need help or have questions? You can reach out to your financial advisor or call our Small Business Client Service Center.


As a reminder, the certifications as well as the burden to show eligibility and entitlement to forgiveness falls solely on the borrower and the owners thereof per the CARES Act, rules and guidance issued thereunder, the applications, and our loan docs., as do the significant penalties if any issues arise with regard to a borrower’s participation in the PPP program.  Accordingly, we encourage you to review the PPP rules and regulations on the Treasury website.  Additionally, the tax rulings on forgiveness, including announcement 2020-12,  are included on the IRS website.

Legal Disclaimer: The information provided herein does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information contained herein is subject to change and may not constitute the most up-to-date information. It is recommended that you contact your attorney to obtain advice with respect to any particular legal matter, and you should not act or refrain from acting on the basis of information contained herein without first seeking advice from your attorney. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. All liability with respect to actions taken or not taken based on the contents hereof are hereby expressly disclaimed. The content herein is provided "as is;" no representations are made that the content is error-free.

Calculator Tool

We have two separate calculator tools: A version for the EZ application and a version for the full application. The 3508S application for loans of $150,000 or less does not require a calculator.

Remember: Whether you will use the EZ or full application depends on a number of factors. In general, you can use the EZ application and calculator if you:

  • Can certify and prove that your employment levels stayed the same, or
  • Can certify and prove that reductions in employment levels were due to a drop in business because of the pandemic, or
  • Can certify and prove that wages stayed the same or weren’t reduced by more than 25 percent
  • Are a self-employed individual, independent contractor or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the loan application form

 

Payroll Reports
If you use a third-party payroll provider or accounting software, they likely have a PPP report available that will show payroll taxes, deposits and everything else you need to submit related to PPP-covered payroll. If you have one of these reports, you can ignore the tab called "Payroll Costs Aggregator." You still need to fill out the rest of the calculator, but doing this will make our review much easier and faster. Contact your payroll provider or the support team for your accounting software to see if they have PPP reports available and to learn how to run them. As an example, QuickBooks has complete information on how to pull PPP-related payroll reports on their website.
 

Click here to download the calculator tool for the EZ application.
(Right click this link and choose “Save as” or “Save Link As.” Save this file to your desktop and open it from there.)

Click here to download the calculator tool for the full application.
(Right click this link and choose “Save as” or “Save Link As.” Save this file to your desktop and open it from there.)

Click the next tab to see what documents you'll need for the application.

 

Need help or have questions? You can reach out to your financial advisor or call our Small Business Client Service Center.


As a reminder, the certifications as well as the burden to show eligibility and entitlement to forgiveness falls solely on the borrower and the owners thereof per the CARES Act, rules and guidance issued thereunder, the applications, and our loan docs., as do the significant penalties if any issues arise with regard to a borrower’s participation in the PPP program.  Accordingly, we encourage you to review the PPP rules and regulations on the Treasury website.  Additionally, the tax rulings on forgiveness, including announcement 2020-12,  are included on the IRS website.

Legal Disclaimer: The information provided herein does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information contained herein is subject to change and may not constitute the most up-to-date information. It is recommended that you contact your attorney to obtain advice with respect to any particular legal matter, and you should not act or refrain from acting on the basis of information contained herein without first seeking advice from your attorney. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. All liability with respect to actions taken or not taken based on the contents hereof are hereby expressly disclaimed. The content herein is provided "as is;" no representations are made that the content is error-free.

Have These Handy

You’re almost ready to get started. Before you click over to the next tab and go to the application, take a few minutes to gather the required documents. You will be required to submit these documents if you use the EZ or full application along with a completed calculator tool. If you do not upload the required documents with your application, we will not be able to review or process it.

For the EZ and full applications, the calculator tool on the previous tab is one of your required documents. Please complete and upload this calculator tool along with your other documents. You can use the "Other" field on the upload screen to upload the calculator.

Of particular importance are Form 941 or equivalent payroll tax forms. These forms will help us verify your payroll amounts. If you are a sole proprietor and do not have a 941, you will submit your 2019 schedule C. Partnerships (partners or LLCs that file as partnerships) will use their 2019 K1(s). For any payroll cycle for which a 941 has not yet been filed with the IRS, you should also include evidence of the payroll withholdings that will be remitted to the IRS.

Payroll Reports
If you use a third-party payroll provider or accounting software, they likely have a PPP report available that will show payroll taxes, deposits and everything else you need to submit related to PPP-covered payroll. If you have one of these reports, you can ignore the tab called "Payroll Costs Aggregator." You still need to fill out the rest of the calculator, but doing this will make our review much easier and faster. It will also meet the payroll withholdings evidence mentioned above. Contact your payroll provider or the support team for your accounting software to see if they have PPP reports available and to learn how to run them. As an example, QuickBooks has complete information on how to pull PPP-related payroll reports on their website.
 

Click here to download the document guide for all applications.
(Right click this link and choose “Save as” or “Save Link As.” Save this file to your desktop and open it from there.) 
 

Click the next tab to get started with your application.

 

Need help or have questions? You can reach out to your financial advisor or call our Small Business Client Service Center.


As a reminder, the certifications as well as the burden to show eligibility and entitlement to forgiveness falls solely on the borrower and the owners thereof per the CARES Act, rules and guidance issued thereunder, the applications, and our loan docs., as do the significant penalties if any issues arise with regard to a borrower’s participation in the PPP program.  Accordingly, we encourage you to review the PPP rules and regulations on the Treasury website.  Additionally, the tax rulings on forgiveness, including announcement 2020-12,  are included on the IRS website.

Legal Disclaimer: The information provided herein does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information contained herein is subject to change and may not constitute the most up-to-date information. It is recommended that you contact your attorney to obtain advice with respect to any particular legal matter, and you should not act or refrain from acting on the basis of information contained herein without first seeking advice from your attorney. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. All liability with respect to actions taken or not taken based on the contents hereof are hereby expressly disclaimed. The content herein is provided "as is;" no representations are made that the content is error-free.

Go to the Application

You’re ready to go. When you click the link below, you'll be directed to our online application system. It will start by asking you for information to look up your loan. Depending on the size of your loan and other factors it will automatically take you to the application you are eligible to use. 

Also below are links to our EZ and full calculator tools to help you get the figures you need to enter in the application. The 3508S application does not require a calculator. 

When you click the application link, it will open in a new tab of your browser. Do not close that tab until after you have submitted your application. If you have to stop for any reason, keep the application tab open. If you need to switch over to the calculator tool while you’re filling it out, keep the application tab open.

If you run into trouble or have any questions about the application system, our Small Business Client Service Center can help. If you have questions about your loan, the calculator or qualifications, your financial advisor is also just a phone call or email away.
 

Find your financial advisor.


 
Start your PPP forgiveness application.

 

Click here to download the calculator tool for the EZ application.
(Right click this link and choose “Save as” or “Save Link As.” Save this file to your desktop and open it from there.) 

Click here to download the calculator tool for the full application.
(Right click this link and choose “Save as” or “Save Link As.” Save this file to your desktop and open it from there.)
 

View the training videos for how to use the application:

EZ Application Training
Full Application Training


As a reminder, the certifications as well as the burden to show eligibility and entitlement to forgiveness falls solely on the borrower and the owners thereof per the CARES Act, rules and guidance issued thereunder, the applications, and our loan docs., as do the significant penalties if any issues arise with regard to a borrower’s participation in the PPP program.  Accordingly, we encourage you to review the PPP rules and regulations on the Treasury website.  Additionally, the tax rulings on forgiveness, including announcement 2020-12,  are included on the IRS website.

Legal Disclaimer: The information provided herein does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information contained herein is subject to change and may not constitute the most up-to-date information. It is recommended that you contact your attorney to obtain advice with respect to any particular legal matter, and you should not act or refrain from acting on the basis of information contained herein without first seeking advice from your attorney. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. All liability with respect to actions taken or not taken based on the contents hereof are hereby expressly disclaimed. The content herein is provided "as is;" no representations are made that the content is error-free.

For Loans of $150,000 or Less

If your PPP loan was $150,000 or less, you will use the incredibly simple 3508S application.

It is important to note that if you and your affiliates took more than one PPP loan for more than one business, you cannot use the 3508S application if those loans total more than $2 million for either the first or the second round.

Anyone who uses the 3508S simplified application is exempt from any reductions in the forgiveness amount based on reductions in FTEs and/or wages.

This application asks only a few questions. You will be required to enter your:

  • PPP Loan Number
  • PPP Loan Amount
  • PPP Loan Disbursement Date
  • Number of Employees at the Time of Loan Application
  • Number of Employees at the Time of Forgiveness Application
  • Forgiveness Amount

The 3508S application does not require you to upload documents for a first round loan, nor are you required to complete a calculator tool or show your work in calculating your forgiveness amount. Your loan amount is the same as your forgiveness amount. If you are applying for forgiveness on a second round PPP loan, you will be required to upload documentation of the 25 percent revenue reduction. 

You should be prepared to show documentation if requested, however. Check this list of documents to see what you should maintain, even though you are not required to submit them. 

You will also be required to make several certifications related to your loan and its use.

You will also be required to retain all PPP-related records for six years after the loan is forgiven or paid, even if you don't have to submit it with their application. 

Need help or have questions? You can reach out to your financial advisor or call our Small Business Client Service Center.


Please take notice that by completing and submitting an application for forgiveness, the borrower and its owners certify they have complied with all PPP requirements. (Seen in the application documents here: First Draw | Second Draw) Submitting an application with false certifications might constitute misrepresentation, fraud, and violations of the False Claims Act (FCA) and Financial Institutions Reform, Recovery and Enforcement Act (Firrea) for which borrowers and the owners thereof can be jointly and severally liable. Moreover, making a false statement to obtain a SBA-guaranteed loan or to obtain forgiveness of the same is also punishable by imprisonment of not more than 30 years and/or a fine of not more than $1,000,000 under 18 U.S.C. 1014.

As a reminder, the certifications as well as the burden to show eligibility and entitlement to forgiveness falls solely on the borrower and the owners thereof per the CARES Act, rules and guidance issued thereunder, the applications, and our loan docs., as do the significant penalties if any issues arise with regard to a borrower’s participation in the PPP program. Accordingly, we encourage you to review the PPP rules and regulations on the Treasury website. Additionally, the tax rulings on forgiveness, including announcement 2020-12,  are included on the IRS website.

Legal Disclaimer: The information provided herein does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information contained herein is subject to change and may not constitute the most up-to-date information. It is recommended that you contact your attorney to obtain advice with respect to any particular legal matter, and you should not act or refrain from acting on the basis of information contained herein without first seeking advice from your attorney. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. All liability with respect to actions taken or not taken based on the contents hereof are hereby expressly disclaimed. The content herein is provided "as is;" no representations are made that the content is error-free.

FAQ

When is my deadline to apply?
That’s a little complicated. The deadline depends on how long your covered period was (which is the amount of time in which you spent the money). Most people take the full 24-week covered period, though some others took eight weeks or some amount in between. The SBA rules say your deadline is 10 months after the last day of that covered period. For those who took PPP loans at the very beginning of the process, their deadlines are in August 2021 if they took the full 24 weeks. For example, if your covered period ended on October 1, 2020 you have until August 1, 2021 to apply for forgiveness before loan repayment begins.

The interesting part is that you won’t official declare how long your covered period was until you apply for forgiveness, which means we can’t know for sure what your deadline is until after you’ve applied. Like we said, it’s a little complicated.

What happens if I miss my deadline?
If you don’t apply by your deadline, the law says you have to start making loan payments to us, and we have to report it to the SBA. We’re not sure what they’ll do with the information, but we are required to report it.

What should I do to make sure I don’t miss my deadline?
To avoid any issues and any further confusion about deadlines—and because there’s no real reason to wait—go ahead and apply for forgiveness now. You’ll be better off, and you’ll have peace of mind that you didn’t miss the deadline and won’t have to make payments (assuming you get full forgiveness). Once your application is completed and submitted to Pinnacle, that counts as meeting your deadline.

How do I apply?
Everything you need to know and do is at PNFP.com/PPPForgiveness. You can read about how the process works, find out which application you’ll use, download a calculator tool and find the link to our online application. Your financial advisor is also a good resource to help you navigate the process. Your CPA and attorney can help, too.

How does the online application work?
It’s a very simple process. It’s the same online system you used to apply for your loan, so a lot of your information will be pre-filled.

  • If your loan was for $150,000 or less, you only have to answer a few questions and upload a few documents.
  • If it was for more than $150,000, you may also need to complete a calculator tool and answer a few additional questions.
  • For the small number of people who will have to use the Full PPP Forgiveness Application, you’ll need to complete a few more calculations and questions.

Will I apply for forgiveness for first and second round PPP loans separately or together?
Forgiveness applications for first and second round PPP loans must be done separately. In addition, you will need to apply for and get forgiveness on your first round loan before you can apply for forgiveness on the second.

What if I took a very large PPP loan?
If your loan was for $2 million or more, the SBA will send you a necessity questionnaire sometime after your forgiveness application is submitted. The questionnaire lets them know why you needed the loan and see proof of it. They require it for every loan of $2 million or more, along with select other loans under $2 million.

They will send the questionnaire to us, and we will give it to you. When that happens, you will have only 10 days to complete it and return it to us. To be prepared, you can a look at the questionnaire now on SBA.gov and start to gather the necessary information so you can meet that 10-day turnaround.