Small Business Paycheck Protection Program (PPP) – Loan Forgiveness Updated: 08/10/2020
Thank you for entrusting TDECU with your recent SBA Paycheck Protection Program loan. We hope you and your employees are all safe and healthy during this difficult time. TDECU assisted you in the funds application process and we will remain by your side during the forgiveness process as well.
At this time, you may have seen that the SBA and Treasury have published two versions of the application (a short form 3508-EZ and a standard 3508-long form). It is anticipated that 90% of all applicants will qualify to use the 3508-EZ form. You can download the instructions for these two forms below:
SBA Form 3508 (Long Form)
SBA Form 3508-EZ (Short Form)
In late June, the SBA and Treasury amended the covered period for use of proceeds from 8 to 24 weeks from the date of your loan funding, allowing borrowers more time to utilize funds and apply for forgiveness, and therefore if you have not utilized your funds within the initial 8 week period, you have some extra time.
TDECU is offering our PPP borrowers access to a secure online portal available to assist you in completing your application and providing the required supporting documentation. Once you are ready to apply for forgiveness, please contact one of our representatives at firstname.lastname@example.org to start the process. As part of granting access to the portal and to protect the security of your information we will be using a multi-factor authentication process which will require that you provide your TDECU representative a cell phone number to receive your authentication code.
Best Practices to increase likelihood of forgiveness:
- Download and read the instructions for the SBA Form 3508 Application for Forgiveness (above).
- Use loan proceeds only for the eligible uses listed above.
- Retain your supporting documents (payroll records, receipts, cancelled checks, etc.) for at least six years.
- Do not co-mingle funds. Keep your PPP loan proceeds in a separate account designated for payroll or PPP uses of funds.
- Retain your number of full time employee headcount.
- Maintain the salaries and wages of your employees at pre-Covid levels.
- If you cannot re-hire your furloughed or laid-off employees, you must make a good faith effort to rehire them (Ex: extend a written offer and receive a rejection).