PPP Loan Forgiveness FAQs

Looking for information about the SBA Paycheck Protection Program (PPP)? Please visit our PPP CARES Act FAQs to learn more.

What You Need To Know

Important Update: On Friday, May 14, the Small Business Administration (SBA) published new guidance on Loan Forgiveness for the Paycheck Protection Program (PPP).

According to published SBA guidance, Loan Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

    • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.

    • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan.

    • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.

    • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30.

    • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.

Seacoast will work diligently to review and process your SBA PPP Loan Forgiveness application and will continue to provide regular updates on your status. In the meantime, please review the following FAQs for additional information.

Frequently Asked Questions

    • Has the U.S. Department of Treasury (Treasury) or the SBA provided a forgiveness application?  Click Here to access the current PPP Loan Forgiveness application at the U.S. Department of Treasury website: home.treasury.gov
      Please note, this form is for informational purposes only and is subject to change. It should not be completed and returned to Seacoast to initiate your Forgiveness application. Once Treasury and the SBA have issued final guidance, we will provide an update as soon as possible. Please contact your local Seacoast SBA expert or Commercial Banker for additional information.

    • How do I request loan forgiveness?  If you received a Small Business Administration (SBA) Payment Protection Program (PPP) loan from Seacoast bank, we will email you in the weeks to come with instructions on how to initiate the loan forgiveness process. Forgiveness is NOT automatic, and must be requested through Seacoast Bank.

    • What amount of my PPP loan is eligible for forgiveness?  You will need to certify that all documents are accurate and that forgiven funds were used to keep employees, make eligible mortgage interest, rent, and utility payments.

        • Payroll costs (as defined in the Interim Final Rule)
        • 75% of loan proceeds must be used for payroll costs
        • Covered mortgage interest payments (if entered into before February 15, 2020)
        • Covered rent obligation payments (if entered into before February 15, 2020)
        • Covered utility payments (if entered into before February 15, 2020)

    • What documents are required for forgiveness?   You will need to provide documentation that supports your use of PPP funds during the eight week covered period.
        • Payroll: Documents that verify the number of full time equivalent employees on payroll and how much was paid during the time periods specified (IRS form 941 or State Unemployment Insurance documents)
        • Health Care Benefits: Documents verifying continuation of group health care benefits (cancelled checks, payment receipts, or other documents verifying payments).
        • Mortgage Interest or Rent Payments: Loan/Lease agreement indicating occupancy prior to 2/15/2020
        • Utilities: Account statements indicating occupancy prior to 2/15/2020.
        • Other documents included in future SBA PPP forgiveness guidance

    • Can a reduction in my loan forgiveness occur?  Loan forgiveness may be reduced if you:

        • If you reduce your full time employment count
        • Borrowers have until June 30, 2020 to restore full-time employment status and salary levels to avoid a reduction in forgiveness. The forgiveness amount will not be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer.
        • If you reduce salaries by more than 25% for any employee that made less than $100,000 in 2019
Please stay informed. While Seacoast will continue to post updates here on our website, we encourage you to periodically review guidance and updates from the Treasury (Treasury) and SBA websites.



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