Customer Assistance
Applying for PPP Loan Forgiveness
Step1
Determine which form to use.
If your original PPP loan amount was $50,000 or less, you can use the new simplified forgiveness application form (Form 3508S).
If you meet any of these 3 criteria, you can use the short form (Form 3508EZ):
- Business type
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Employee hours
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Business impact
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
If you did not meet the criteria for the short form, you will need to complete the long form instead.
Step 2
Prepare your form.
Use these materials to prepare your forgiveness application. This is not your final application, so you may leave loan number and signature blank.
Use these materials to prepare your calculations. This is not your final application, so you may leave loan number and signature blank.
When you get to Step 3, you will be prompted to enter values from your completed form into the online tool.
Use these materials to prepare your calculations. This is not your final application, so you may leave loan number and signature blank.
When you get to Step 3, you will be prompted to enter values from your completed form into the online tool.
To streamline your online application process, have these items on hand before using the online tool:
- Email address
- The email address used when signing original loan documents
- Original PPP loan amount
- Tax Identification Number
- The TIN used on the signed PPP loan application
- Annual Sales
- Annual sales figure from your most recent fiscal year-end
- Completed form
- You will need to refer to your completed forgiveness application form (Form 3508EZ or Form 3508) to complete fields in the online tool.
- Supporting documents
- After submitting your form details, you will be able to upload your supporting documentation
- Schedule A (if applicable)
- If submitting the long form (Form 3508), upload an electronic version of your Schedule A worksheet as well
PPP Loan Forgiveness FAQs
The SBA guidance included a few tweaks to improve the forgiveness process for small businesses, from allowing closer alignment to regular payroll cycles to an additional safe harbor. Here are some key points from the guidance:
- Alternative eight-week period. Original guidance stated that the eight-week period to use PPP funds would begin the day the borrower received their funds. However, as detailed in the forgiveness application, borrowers are now permitted to calculate payroll costs using an “alternative” eight-week period that aligns with their regular payroll cycles.
- Exemption from forgiveness reduction. According to the new guidance, borrowers who can provide proof that a worker or workers declined a good-faith, written offer of rehiring can avoid a loan forgiveness reduction on these workers.
- Incurred versus paid. New guidance states that any payroll and eligible nonpayroll expenses incurred – but not paid – during the covered period are eligible to counted in the loan forgiveness calculations, as long as they are paid by the next regular payroll or billing date.
- Additional safe harbor. Borrowers who demonstrate a restoration of workforce by June 30 to their workforce level that was in place on Feb. 15 can obtain safe harbor from forgiveness reduction.
On Friday, June 5, 2020, a new law was signed to provide greater flexibility for Paycheck Protection Program borrowers. Key features of this new law include:
- Extends the maturity period for unforgiven PPP loans made after the date of enactment to five years;; the maturity on previous PPP loans is not automatically extended but may be extended by mutual agreement of the lender and the borrower.
- Extends the forgiveness period for all PPP loans to 24 weeks from the date of origination.
- Reduces the minimum amount that businesses must devote to maintaining payroll from 75% to 60% in order to receive forgiveness.
Read the full detail in the joint statement from the Treasury and SBA, dated June 8, 2020.
The SBA released revised forgiveness application forms on June 17, 2020. This included a new, shorter "EZ" version of the application for borrowers meeting certain criteria.
Revised forgiveness application (Form 3508)
New, shorter forgiveness application (Form 3508EZ)
On June 17, 2020, the SBA released a new three-page "EZ" PPP forgiveneness application. This form requires less documentation and fewer calculations than previously required.
This new forgiveness application, Form 3508EZ, applies to borrowers who meet any of these three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers.
Please see the application form (Form 3508 or Form 3508EZ) and its instructions for a listing of materials to collect.
SBA loan programs during the COVID-19 outbreak
The Small Business Administration offers several loan programs for businesses facing extraordinary circumstances. Bremer Bank is an SBA Preferred Lender, and can help you evaluate your loan options across SBA and other available programs. For information about traditional SBA programs, visit our Small Business Loans page.
Paycheck Protection Program (PPP)
Created by the CARES Act, to help small businesses keep workers on payroll during the COVID-19 outbreak. Applications no longer accepted.
A new program that may be used on your payroll costs including benefits, interest on mortgage obligations, rent and utilities.
- Business Size or Type
- You are eligible if you are a small business or a 501(c)(3) with fewer than 500 employees, an individual who operates as a sole proprietor or independent contractor, or if you otherwise meet the SBA’s small business size standard. Businesses with more than 500 employees in high-risk segments, such as hospitality or restaurant, may also qualify based on site-level employment counts.
- Requirements
- You will be asked to provide a good faith certification that the uncertainty of current economic conditions makes the loan necessary to support ongoing operations, and that you will use the loan to maintain payroll, or make mortgage, lease or utility payments.
Up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount, capped at $10 million. Payroll costs are capped at $100,000 annualized for each employee.
The interest rate is 1.00%, with a term of 2 years. You may be eligible for loan forgiveness based on how the funds are spent during the 8-week period after receiving the funds. (Update: The PPP Flexibility Act lengthens this to a 24-week period.)
Loans originated on or after June 5, 2020 have a term of 5 years.
We are here to serve you, and we will be prepared to work with you as soon as the program launches.
- Contact Your Banker
- Find your business banker on our Find a Banker page
- US Chamber of Commerce
- Review this helpful guide (PDF) from the U.S. Chamber of Commerce.
SBA Economic Injury Disaster Loan
Working capital loans to meet ordinary and necessary financial obligations that cannot be met as a direct result of a disaster.
To meet working capital obligations as a direct result of a disaster, these loans are originated directly through the SBA.
These loans are subject to SBA qualifying criteria, and funded directly through SBA.
- Business Size or Type
- You are eligible if you are a small business or a 501(c)(3) with fewer than 500 employees, an individual who operates as a sole proprietor or independent contractor, or if you otherwise meet the SBA’s small business size standard.
- Requirements
- Subject to credit history, repayment ability and collateral review by the SBA
Limited to the economic injury determined by SBA, up to a maximum of $2 million
Maximum 30 years
- Contact Your Banker
- Find your business banker on our Find a Banker page
- SBA
- Review the Coronavirus Disaster Assistance information from SBA
Paycheck Protection Program (PPP) FAQs
As part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
Applications no longer accepted. The SBA closed its application window on August 8, 2020.
Yes. The federal government has recently emphasized the requirement that borrowers certify the necessity of a PPP loan to support the ongoing operations of an applicant's organization.
Any borrower who obtained a PPP loan based on a misunderstanding or misapplication of this requirement has until May 14, 2020 to repay the loan. Update: On May 13, the SBA issued guidance around an automatic safe harbor to borrowers with an original principal amount less than $2 million. These borrowers will be deemed to have made the required certification.
Updated SBA guidance states that borrowers that received PPP loan amounts over $2 million will be subject to review by the SBA for compliance with program requirements, including certification of economic need. If the SBA determines a borrower does not meet the certification requirements, they will seek repayment of the outstanding PPP loan balance and inform the lender that the loan is not eligible for forgiveness.
We recommend all PPP loan recipients maintain all records that demonstrate the need for the loan and document how the loan was used.
For more information, see these FAQs from the SBA. Question #46 relates particularly to these points of interest.
Applications no longer accepted. The SBA closed its application window on August 8, 2020.
This program can be used on your payroll costs including:
- Payroll costs, including benefits;
- Interest on mortgage obligations, incurred before February 15, 2020;
- Rent, under lease agreements in force before February 15, 2020; and
- Utilities, for which service began before February 15, 2020.
Payroll costs include:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
- State and local taxes assessed on compensation; and
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
Main Street Lending Program
The Federal Reserve is establishing a Main Street Lending Program to support small and medium-sized businesses that were in good financial standing before the onset of the COVID-19 pandemic. Additional information can be found on the Main Street Lending Program web page, administered by the Federal Reserve Bank of Boston.
Main Street New Loan Facility (MSNLF)
New loans to support small and medium-sized businesses that were in good financial standing before the onset of the COVID-19 pandemic.
Secured or unsecured term loan
5-year maturity with principal deferred for two years. No prepayment penalty. Read the Fed's full term sheet.
- Minimum
- $250,000
- Maximum
Lesser of (a) $35 million or (b) an amount that, when added to the outstanding and undrawn available debt does not exceed four times the Eligible Borrower’s adjusted 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA)
Main Street Priority Loan Facility (MSPLF)
New loans to support small and medium-sized businesses that were in good financial standing before the onset of the COVID-19 pandemic.
Secured or unsecured term loan
5-year maturity with principal deferred for two years. No prepayment penalty. Read the Fed's full term sheet.
- Minimum
- $250,000
- Maximum
Lesser of (a) $50 million or (b) an amount that, when added to the outstanding and undrawn available debt does not exceed six times the Eligible Borrower’s adjusted 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA)
Main Street Expanded Loan Facility (MSELF)
An increase or "upsize" to an existing loan, to support small and medium-sized businesses that were in good financial standing before the onset of the COVID-19 pandemic.
Secured or unsecured Upsized Tranche of term loan or revolving credit facility (originated before April 24, 2020/18 months or more maturity)
5-year maturity with principal deferred for two years. No prepayment penalty. Read the Fed's full term sheet.
- Minimum
- $10 million
- Maximum
Lesser of (a) $300 million or (b) an amount that, when added to the outstanding and undrawn available debt does not exceed six times the Eligible Borrower’s adjusted 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA)
USDA Coronavirus Food Assistance Program (CFAP)
The Coronavirus Food Assistance Program (CFAP) offers support to farmers and ranchers who have been negatively affected by the COVID-19 pandemic. The USDA's Farm Service Agency will begin accepting applications on May 26, 2020. This program includes:
- Direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted.
- Assistance with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
The program is eligible to farmers regardless of size and market outlet, if they suffered an eligible loss.
Additional relief program details can be found on the USDA website.
North Dakota loan programs
Businesses in North Dakota can support their working capital needs through the COVID-19 PACE Recovery Program (CPRP) or Small Employer Loan Fund (SELF). Contact a business banker to learn more or to apply.
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COVID-19 PACE Recovery Program
For North Dakota businesses who experienced economic injury as a result of the COVID-19 pandemic.
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Small Employer Loan Fund (SELF)
For very small North Dakota businesses with 10 FTE or less, who experienced economic injury as a result of the COVID-19 pandemic.
Resources for small businesses
In addition to the loan programs offered by the SBA and the CARES Act, additional government resources are available. Talk to your banker for help navigating the options available to you.
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Small Business Administration (SBA)
The SBA offers small business guidance and loan resources on their website.
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State of Minnesota
Minnesota’s Department of Employment and Economic Development has established a loan program for small businesses directly and adversely affected by the COVID-19 situation.
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State of North Dakota
The state of North Dakota is offering primary sector business and rural growth incentive program emergency loans.
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State of Wisconsin
Local and statewide options for Wisconsin businesses are compiled online.
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City of Saint Paul
The City of Saint Paul has established bridge funds for families and for small businesses.
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City of Minneapolis
The Minneapolis Gap Funds for Small Businesses include a new Small Business Debt-free Fund for companies with 20 employees or less.
Questions about your stimulus check?
Read our article about Economic Impact Payments, including helpful links to IRS resources and FAQs.
Consumer loan assistance
If you are a Bremer customer impacted by the COVID-19 situation, Bremer is here to work with you.
Consumer mortgage loans
Bremer mortgage customers affected by the COVID-19 situation may qualify for suspended or reduced payments for up to 12 months.
If you are a mortgage customer in need of this assistance, please contact our Loan Solutions team at 651-734-4147 or 1-800-908-2265, extension 4147.
In addition, Bremer is suspending all foreclosure actions, with the exception of abandoned or vacant properties.
Consumer loans, including home equity loans
Customers in need of assistance may call their local banker or our Loan Solutions team at 651-734-4147 or 1-800-908-2265, extension 4147.