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PPP Forgiveness FAQs

Please note that Simmons Bank is continually working to update our resources as new information becomes available.

What are the requirements for PPP Loan Forgiveness?

PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs

Please see the Small Business Administration’s (SBA) Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act (including question B. 14) for more information on forgiveness.

For Second Draw loans, please also see the SBA’s Interim Final Rule on Second Draw Loans (including section IV. (j)) for important information.

How do borrowers request loan forgiveness?

Your Simmons banker will work with you to submit a loan forgiveness request via our online portal. Please contact your banker to start the application process.

When should borrowers apply for loan forgiveness?

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. However, if borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers must begin making loan payments to their PPP lender.

Will an EIDL Advance be deducted from the loan forgiveness amount?

No, recent legislation has eliminated the original requirement to deduct the amount of EIDL Advance you may have received from your PPP loan forgiveness.

Which PPP loan forgiveness application should be used?

The SBA has provided several applications for different groups of borrowers. The Simmons Bank online portal will help you determine which form you are eligible to use. You may learn more about the forms and review the instructions on the SBA’s website.

Legislation enacted on Dec. 27, 2020 provides a simplified loan forgiveness application process for loans of $150,000 or less. As of Jan. 16, 2021, this form has not yet been released.

Are borrowers required to provide demographic information?

To better understand which small businesses are benefiting from PPP, the SBA is requesting demographic information on PPP loan forgiveness applications. Completion of these questions is optional and will not impact your ability to receive a loan. For additional information, please see PPP Loan Data – Key Aspects.

What else do borrowers need to know about loan forgiveness?

The SBA has prepared helpful information in their Frequently Asked Questions on PPP Loan Forgiveness. As of Jan. 16, 2021, this document does not reflect recent changes that have been made to the program.

To better understand recent changes, please see the Small Business Administration’s (SBA) Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act (including question B. 14) and, for Second Draw loans, please also see the SBA’s Interim Final Rule on Second Draw Loans (including section IV. (j)).

You may also visit the SBA’s Forgiveness webpage, and the following SBA Interim Final Rules may be helpful as well:

PPP—Requirements—Loan Forgiveness

PPP—Revisions to Loan Forgiveness and Loan Review Procedures

PPP—Treatment of Owners and Forgiveness of Certain Nonpayroll Costs

PPP—Additional Revisions to Loan Forgiveness and Loan Review Procedures