If your small business received a Paycheck Protection Program (PPP) loan, all or a portion of the loan may be eligible for forgiveness. There are specific requirements businesses must meet for the loan to be forgiven.
We will keep this page updated with the latest information from the Small Business Administration (SBA) and Treasury Department.
The Paycheck Protection Program (PPP) is constantly evolving and is subject to requirements outlined by the Small Business Administration (SBA) and U.S. Treasury Interim Final Rules.
If you received a PPP loan through First Interstate, we will email you with next steps when it’s time to apply. We are still waiting for guidance from the SBA on the forgiveness process and are not accepting applications just yet.
The SBA has released two forms and instructions borrowers may use to apply for forgiveness—an EZ version and a revision of a previously released draft application. There’s no need to complete the PDF version of these applications; we are developing an online client portal for borrowers.
You may submit the new EZ Forgiveness Application if you:
For all or a portion of the PPP loan to be eligible for forgiveness, borrowers must:
Expenses eligible for forgiveness include payroll costs and interest payments on a business mortgage, rent or lease, and utilities—if established before February 15, 2020. Payroll costs include:
The following related expenses are not eligible for forgiveness:
The SBA has allowed some flexibility in timing for the use of PPP funds. Businesses may seek forgiveness for payroll costs paid or incurred during the 24 weeks beginning on either:
The PPP Flexibility Act extended the covered period from eight weeks to 24; however, businesses may choose to use an eight-week period.
Payroll costs paid or incurred during the 24-week period are eligible for forgiveness. Payroll costs incurred during the eight-week period are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, they must be paid during the 24 weeks. Payroll costs are considered “paid” on the day paychecks are distributed or your business originates an ACH credit transaction. They are considered “incurred” on the day the employee earned the pay.
Mortgage interest, rent, and utilities need to be paid during the covered period or paid on or before the next regular billing date, even if the billing date is after the covered period.
The forgiveness amount is reduced if the salary or hourly wages of employees who make less than $100,000 annually was reduced by more than 25 percent during the covered period compared to the period from January 1 to March 31, 2020.
The forgiveness amount also is reduced if the business reduces its average full-time equivalent (FTE) employees. The following may be excluded if you didn’t hire a replacement:
The SBA has extended “safe harbor” to businesses that rehire employees by December 31, 2020. You may be exempt from the FTE reduction if these two conditions are met:
When you apply for forgiveness, you will need to submit documents verifying eligible expenses and full-time equivalent employees and each employee’s salary or wages. The SBA requires all records related to your PPP loan be saved for six years after the loan is forgiven or repaid in full.
Payroll Documentation: You’ll need to include documents verifying the eligible compensation and benefit payments, including:
FTE Documentation: If you reduced the number of full-time equivalent (FTE) employees or you reduced the salary or wages of any individual employee by more than 25%, you’ll need to document:
Documents may include:
If you did not reduce FTE or salary/wages, or you have no employees, you may use Form EZ and this documentation is not required with the application.
Nonpayroll Documentation: You’ll need to verify the existence of a mortgage, lease, or utilities prior to February 15, 2020, and payments made during the forgiveness period:
Business mortgage interest payments
Business rent or lease payments
Business utility payments