PPP Loan Forgiveness

Thank you for working with First Mutual Bank 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.

PPP Loan Forgiveness

We are pleased to assist you with the loan forgiveness step of the SBA Payroll Protection Program.

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.

If you have questions regarding your PPP loan, please contact our team at (833) 294-4643.your relationship manager.

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.

For borrowers with loans less than $150,000:


Please use the 3508S application and instructions.

download form 3508S
 

If your PPP loan is over $150,000 read below to see which forgiveness application will work for your business.

 

Use form 3508EZ application and instructions if:
  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%.
Download Form 3508EZ


Use form 3508 application and instructions if:
  1. The loan amount is over $150,000;
  2. Had a salary or FTE reduction of greater than 25%.
Download Form 3508
 


Additional resource information may be found at the SBA’s PPP webpage.

Once you’ve completed your application and have gathered the needed documents to apply for forgiveness, complete the contact form on this page and a member of our team will be in touch to walk you through next steps.
 

Submit your information below when you’re ready to apply for forgiveness.

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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

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 Mutual Bank to apply toward payment of the loan principal and accrued interest. 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. First Mutual Bank 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 of the loan, plus accrued and future interest, in full, withing five years from the date of the note. Payments will be expected monthly. The bank will advise you as to when monthly payments are to begin. 

Resources

We suggest you contact your accountant or legal counsel to assist you in completing the PPP Forgiveness application as well as locating any supporting documentation as to use of the loan funds.

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


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