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PPP Forgiveness Information Page

Paycheck Protection Program Loan Forgiveness 


A major benefit of the Paycheck Protection Program (PPP) is that it offers forgiveness on the full principal balance and accrued interest for loan proceeds used toward approved purposes, as long as your number of employees and compensation levels were maintained during the covered period. 

Here are a few important facts to help you stay organized and to make the tracking of funds as clear as possible: 

  • Documentation: Work with your accounting team to assist you in understanding the regulations. Make sure to create a plan to track all transactions your PPP funds were used for and to keep all related receipts. 
     
  • Payroll:  Keep accurate payroll records to prove that at least 60% of your PPP loan was used for payroll costs. This includes employer-paid group health insurance and employer-paid retirement benefits.  
     
  • Non-Payroll Expenses:  These cannot exceed 40% of the total forgiveness amount. Payment of interest on mortgage obligations, rent(s) on lease agreement(s) and utilities payments which were in effect before February 15, 2020 may be included. Make sure to keep all of your invoices, statements and canceled checks to prove expenses.
  • Timeframe:  Your business now has 24 weeks to spend PPP loan funds (up from the original 8 week period). Importantly, you are still allowed to use the original 8-week period if you prefer for your forgiveness application.
    • Please note: Borrowers have 10 months after their 24 week coverage period to apply for forgiveness. Once a completed forgiveness application is submitted the financial institutions have 60 days to review and submit to SBA. Once SBA receives the application from the financial institutions they have 90 days to make a forgiveness decision. 

We continue to await further guidance from the SBA and will begin accepting, processing and submitting forgiveness request applications as soon as possible. All forgiveness applications must be processed through our online portal. Please be assured, that we will email you directly when you are be able to request loan forgiveness online through Capital Bank.

For more information: 

PPP Frequently Asked Questions (FAQs) on PPP Loan Forgiveness

The information above includes guidance provided by the Small Business Administration as of  October 2020, and does not ensure loan forgiveness.