Small Business Administration (SBA)
Paycheck Protection Program Update on Loan Forgiveness

If you have received funding through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), you may be eligible to request loan forgiveness.

Here’s what you need to know about PPP loan forgiveness and how it works. This is based on the latest information from the Small Business Administration (SBA), as of April 2, 2020 in an Interim Final Rule (IFR). We will continue to share additional information on this page as it becomes available.

The ways you use and document the proceeds of your loan are important. Find the latest information at SBA.gov and Treasury.gov. Other eligibility requirements may apply.

Loan forgiveness is not automatic. You must request it. Forgiveness may be granted for some or all of the principal balance of the loan on eligible payments made within eight weeks, from the date of loan disbursement (the date funds were deposited into your account). 

To be eligible to receive loan forgiveness, loan funds must be used for specified purposes, and at least 75% must be used for payroll costs, as defined by the SBA. No more than 25% of loan forgiveness amount may be attributable for non-payroll costs. 

Generally, companies must maintain employee headcount and compensation levels during the eight-week period after loan disbursement.

The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount of these costs over the eight-week period following the date of the loan disbursement:

 For full forgiveness:

Members will need to provide documentation to Vantage West Credit Union for all expenses for which they plan to request forgiveness.

Loan payments will be deferred for six months, but interest will continue to accrue – even if the loan is not forgiven, in part or in full. You will be responsible for any amounts not forgiven under the loan.

You should review and modify any automatic payments like ACH and automatic debits for the account holding these loan proceeds.

The SBA may limit the timeframe by which you’ll need to request loan forgiveness.

It is your obligation, as the borrower, to understand the SBA’s rules. This information does not constitute legal, financial, or regulatory advice. Borrowers are advised to consult appropriate and authorized representation in connection with all aspects of the SBA PPP loan application, due diligence, and loan forgiveness requirements.

SBA PPP Loan Forgiveness Frequently Asked Questions

What you need to know about the Paycheck Protection Program

For general SBA PPP information, including required documentation, click here.

For general SBA PPP frequently asked questions, including payroll calculation and other payroll information, click here.

Disclosures

<sup>1</sup> Subject to program requirements. Must have 500 or fewer employees whose principal place of residence is in the United States or are a business that operates in a certain industry and meet the applicable SBA employee-based size standards for that industry. Accommodation and food services businesses may have up to 500 employees per physical location. All loans subject to credit approval. Must apply by 06/30/2020. Typical Small Business Administration requirements of credit not available elsewhere, collateral and personal guarantee requirements not applicable.

All applications for a SBA PPP loan are subject to credit approval, supporting payroll records and tax documents for Vantage West to verify the dollar amount of average monthly payroll costs, Vantage West program and underwriting guidelines, and other SBA requirements in Vantage West’s absolute discretion. The PPP Loan program is first-come, first-served SBA sponsored program. Vantage West makes no guarantee that by submitting an application to Vantage West that any application will be processed, reviewed, or approved. Applicant will hold Vantage West harmless from any and all actions, claims or disputes in connection with the SBA PPP loan program, application, and in any way connected with Vantage West’s approval or non-approval of Applicant’s request. Vantage West will calculate the eligible loan amount using Borrower’s tax documents which Borrower certifies are identical to those submitted to the IRS.