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Paycheck Protection Program Loan Forgiveness FAQs

September 04, 2020

CEO and Co-Founder of LeadingEdge PersonnelKelly Hudson, shares his experience with the PPP Forgiveness application process.  

PPP Forgiveness Frequently Asked Questions

How do I access the EZ form?

Once you enter the PPP Forgiveness Portal, you will find at the top of the screen a button that reads “Check Your EZ Form Eligibility”. Click on this button and answer the questions in the pop-up screen. You only need to be able to select one checkbox in order to qualify for the EZ form.

When may I submit my forgiveness request? My covered date doesn’t end until 10/1. Do I have to wait until then?

You may apply for forgiveness once you have met your eligibility, meaning you have spent your PPP funds. You are encouraged to apply for forgiveness once you have done so.

Do I include myself as an owner in the total employee count at the time of the PPP application? What if I included myself when I first applied?

Do not include yourself in the total employee count if you are an owner/employee, general partner, or independent contractor, even if you did so at the time you applied for PPP funds. Remove yourself from both “Number of Employees at Time of Application” and “Number of Employees at Time of Forgiveness”.

I do payroll internally. Can I just provide you a copy of my Quickbooks report?

As the lender, we are requesting that you submit either a third-party payroll provider report OR your IRS Form 941s. Quickbooks does not qualify as a third-party payroll provider.

I haven’t used all of my funds as of yet. Do I need to apply for forgiveness now?

No, you do not need to apply for forgiveness until you have utilized all of your PPP funds. In fact, we strongly encourage you to use all funds before submitting for forgiveness.

Do I need to include gross payroll or net?

Please use gross payroll, including the sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period.

Do I need to exclude what an owner/employee or general partner received for owner contributions to employee benefits? Owner contributions to retirement plans?

The SBA requires that you exclude all owner/employee or general partners who retain a minimum of 5% ownership interest in the entity which received PPP funds for contributions to employee health benefits and retirement plans.

I keep getting an error under Owner Compensation when I try to enter what the owner was paid this year. Why?

The amount paid may only be 2.5 times the average monthly payroll of their 2019 compensation. Do not round up, as the imbedded formula will not accept it.

For example: If 2019 income was $85,000, the formula would be as follows: $85,000/12 = $7,083 x 2.5 = $17,707.50. You would enter $17,707 as the maximum amount paid during the 24-week covered period.

Do I need to include the entire lease agreement for nonpayroll costs?

Please include the first page or declaration page to show the effective dates of the contract. The entire agreement is not necessary.

What happens if I hit submit accidentally?

When you submit your application, whether intentional or accidental, you are sending your forgiveness application to our PPP Forgiveness Team for review. You do not submit anything directly to the SBA; therefore, if you submit before you are ready, simply send our team a quick email to make us aware. Our team will then reset the link and send it back to you so that you may access the portal once more.

What if I submitted my forgiveness request and forgot to upload attachments?

If you submit without attachments, our review team will send the application/portal link back to you so that you may upload the attachments.

I’m trying to enter my PIN but keep getting an error message. Why?

If you haven’t accessed the portal for a period of time, you may receive an error message. This simply means that the link has expired and a new link needs to be generated. The lifespan for the link is 30 days. Simply email your PPP Forgiveness team at [email protected] or call (210) 424-8778 with your request for a link reset.

My loan was over $500,000. Am I ineligible to use the EZ form?

There is no dollar threshold set to use the 3508EZ form. You must simply be able to answer one of the three qualifying questions affirmatively. 

Helpful Resources

>> PPP Forgiveness Document Checklist

>> PPP Forgiveness Borrower Checklist

>> Email our PPP Forgiveness team

>> Call our PPP Forgiveness team


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