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Paycheck Protection Program (PPP) Loan Forgiveness


Paycheck Protection Program (PPP) Loan Forgiveness



The forgiveness portal is now open to all PPP first draw and second draw borrowers.

Key Features for Existing PPP Loans

Additional Eligible Expenses
Forgiveness previously had been predicated on expenses incurred or paid for payroll costs, mortgage interest, rent or lease costs and utilities. For any borrower who has not yet filed a forgiveness application, they may now include:

  • Covered operations expenditures – which include business software or cloud computing services, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses.
  • Covered supplier costs – payments made to a supplier under a contract or purchase order for goods that are “essential to the operations of the entity” (leaving the definition of “essential” to the borrower). Note that the contract or purchase order must have been in place prior to the covered period of the existing PPP loan unless it was for perishable goods, which could be in place at any time.
  • Covered worker protection expenditures – any operating or capital cost incurred to comply with safety or sanitation requirements put in place between March 1, 2020, and the end of the national emergency (once declared). Such costs can include establishment of a drive-through window facility, new ventilation or filtration systems, physical barriers, expanded space or other assets relating to compliance with government requirements.
  • Covered property damage costs – for costs related to civil disturbances during 2020 that were not covered by insurance.
  • Payroll expenses – now expanded to include employer payments for group life, disability, vision or dental insurance, which were previously excluded.

In short, there are many more business expenses that may be used for forgiveness support with these new, expanded eligible expenses.

Simplified Forgiveness Application for Loans up to $150,000

In October 2020, the Small Business Administration (SBA) released Form 3508S for borrowers with loans under $50,000, greatly simplifying the forgiveness application by essentially requiring only a few certifications by the borrower that the loan was put to proper use.

Earlier this year, the SBA further streamlined the forgiveness application for borrowers with loans of $150,000 or less. For context, about 87% of all PPP loans made in 2020 were $150,000 or less easing the process for the majority of borrowers. 

The simplified application form will require the borrower to provide:

  • The number of employees retained by use of the loan
  • The estimated amount of the loan used for payroll costs (note: the 60% rule remains in place)
  • The total loan amount
  • An attestation that the loan was used in compliance with the law
  • First Draw borrowers applying for loan forgiveness don’t have to provide any additional information beyond completing the simple online application.
  • Second Draw borrowers with loans of $150,000 or less just need to provide documentation that revenue declined by at least 25% between 2019 and 2020 along with the forgiveness application.

While the documentation required upon submission of the forgiveness application has been simplified, borrowers should note that documentation must be maintained by the borrower to support the forgiveness application for three years (non-payroll costs) or four years (payroll costs only) in the event of a subsequent audit.

Repeal of EIDL Advance treatment
The Economic Injury Disaster Loans (EIDL) advance amount will no longer be deducted from PPP forgiven loan amounts.

The forgiveness portal is now open to all PPP borrowers, including first draw and second draw borrowers. Keep in mind:

  • Forgiveness is not automatic. You must request it by submitting your application via our online portal.
  • CPB will pre-fill the following information on your forgiveness request:

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    • Standard business information, such as business name, address, email, Business TIN (EIN or SSN)
    • SBA PPP Loan Number
    • Lender PPP Loan Number
    • Funded PPP Loan Amount
    • PPP Loan Disbursement Date

  • You’ll need to certify and document that you used the loan funds for SBA-eligible purposes.
  • You’ll be able to check your forgiveness status online after you submit your request.
  • Once the SBA makes a decision, we’ll email you. Average response from the SBA is within 12 business days. Best of all, nearly 96% of our customers who have applied for forgiveness received approval that their loan is fully forgiven.  

Here are a few things you can do to prepare for Loan Forgiveness:

  • If your PPP loan is $150,000 or less, familiarize yourself with Form 3508S.
  • Or, review the SBA’s Checklist for Using SBA Form 3508EZ to understand if the 3508EZ form or the 3508 form applies to your forgiveness request. This ensures a smooth application process and improves your chances of having your loan 100% forgiven.
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    • Form 3508S, 3508EZ or 3508you are not required to fill out either form before starting your online forgiveness request because you will input it into the CPB loan forgiveness portal.
    • PPP Schedule A Worksheet – if Form 3508 applies to you, you are required to complete the PPP Schedule A Worksheet before requesting forgiveness.

      To make it easier to apply, we recommend preparing all the information required in the Forgiveness Application in a worksheet. Some organizations such as the AICPA are providing loan forgiveness calculators/worksheets which are publicly available and free of charge.

      Click HERE to view the AICPA’s dynamic tool.

      Note: If you use such a calculator/worksheet you should confirm it is current with the latest PPP forgiveness rules, and be advised that you remain fully responsible for the accuracy, correctness and completeness of your forgiveness information, calculations and submission to your lender and SBA.

  • Gather documents to support your eligible payroll and non-payroll costs

You have 10 months after the end of the Covered Period to submit your loan forgiveness application. As long as you submit your application before the deadline, you do not need to make any payments on your loan while CPB awaits a status update from the Small Business Administration.  CPB will notify you when it receives from SBA either (a) payment for the portion of your loan that has been forgiven or (b) notice that your loan is not eligible for forgiveness.

  • You will not owe anything on the loan if your loan is fully forgiven.
  • If only part of your loan is forgiven or if your forgiveness application is denied, you must repay the balance of your loan that is not forgiven by your loan’s maturity date. CPB will notify you of the date on which your first loan payment is due.

Responses to Frequently Asked Questions about PPP loan forgiveness.

Where do I go for information or question regarding loan forgiveness?

  • Small Business Administration- Paycheck Protection Program (PPP)
  • Consult with your CPA/Accountant or Legal Counsel
  • If you need assistance:

    PPP Loan Forgiveness: What You Need to Know

    This is an important webinar for PPP loan recipients.  Learn how to navigate the next stage of your PPP loan with this exclusive CPB online event.

    • An interactive discussion to help businesses better understand the requirements for loan forgiveness
    • Featuring a demo of the CPB Loan Forgiveness Portal
    • Recorded on Tuesday, August 18 at 2:00 p.m. (HST)
    • See Presentation Deck here


    • Stay safe from scammers: Prevent fraud due to release of PPP program loan data - In an effort of transparency, the SBA, in consultation with the Treasury Department, released a spreadsheet of data that included information about PPP loans at the loan level. This spreadsheet includes the names of business recipients, their associated addresses, and lending partner.

      This may result in the “bad guys” being able to easily target PPP loan recipients by phone or online, posing as someone from the bank. If you receive a suspicious communication regarding your PPP loan and are unsure of how to proceed, contact us immediately at [email protected] or 808-544-6865.

    • SBA Alert: The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times. Be on the lookout for grant fraud, loan fraud, and phishing.  Please see the SBA Fraud Alert for more information. 

    We know you may have questions. Central Pacific Bank is committed to sharing critical resources to help you understand the Paycheck Protection Program, and the upcoming loan forgiveness.

This communication is as of December 30, 2020 and is intended to assist PPP applicants/borrowers in understanding and complying with the Paycheck Protection Program (“PPP”) laws, regulations, requirements and rules (collectively “PPP Rules”). This is only a general description/summary of the matters covered herein. PPP applicants/borrower should consult the PPP Rules for the complete coverage. Central Pacific Bank (“CPB”) is not rendering any legal, tax, accounting, business or other advice to PPP applicants/borrowers in connection with the PPP which is a federal government program and subject at all times to the PPP Rules as they may be changed, amended or supplemented at any time by the federal government. PPP applicants/borrowers are strongly encouraged to seek the advice of legal, tax, accounting, and other professional advisors respecting the PPP. PPP applicants/borrowers are solely responsible for determining their eligibility for the PPP and compliance with all PPP Rules, and shall not rely on CPB or any employee or representative of CPB respecting the PPP Rules or any interpretation or application thereof. CPB has no obligation or responsibility to update this communication as additional PPP Rules are issued or if any PPP Rules are changed, amended or clarified. PPP applicants/borrowers must monitor the government’s PPP websites at and for any updates to the PPP Rules.