PPP Loan Forgiveness Frequently Asked Questions

Getting started with the forgiveness application

How will the PPP forgiveness process or application work?
The SBA recently released an updated Paycheck Protection Program Forgiveness application and guidance implementing the Paycheck Protection Program Flexibility Act. Based on the latest guidance, we’re preparing our online Paycheck Protection Program Forgiveness application portal now and expect it to open in late-August.

Borrowers are eligible to begin requesting forgiveness eight weeks after receiving initial funding, although some may prefer to use the full 24-week covered period. If borrowers elect the 24-week covered period (required on loans made after June 5) the forgiveness process can be initiated prior to 24 weeks if all loan proceeds are exhausted. Borrowers will receive an email from Synovus notifying them that they are eligible to begin the forgiveness process. Once the online application is ready, we’ll email the contact listed on the PPP loan application during origination with a link to begin the forgiveness process.

It’s important to note the SBA, and not Synovus, sets the criteria for loan forgiveness, including the eligibility criteria and the parameters that determine how much of a loan may be forgiven.

How do I begin my online application?
You will receive an invitation email with a personalized link to access our online portal. These invites are based on a combination of factors, including the date you received your loan funds and your response to our recent survey about your timing preferences. If you have not already let us know when you intend to begin, please do so now by answering three short questions.

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What should I do now to prepare?
We encourage you to begin reviewing and gathering materials that may need to be attached to your application, and to review the Schedule A Worksheet. You can learn more about the list of required documents and instructions here. Applications must be submitted through our online portal. We will not accept paper applications.

I completed a paper application, what should I do?
If you’ve already completed a paper application, you’re well positioned to enter the information into our online application.

Do I have to complete my forgiveness application within my 8-or 24-week covered period?
You are not required to complete your application within the eight or 24-week covered period. You will receive an email invitation to our portal to begin the process in the coming weeks.

When did my covered period begin?
Your covered period began on the date your loan funds were provided to you.

Which covered period is best for me, 8-week or 24-week?
You’ll want to consider the amount of forgiveness you qualify for based on how you used your PPP funds to aid in deciding which covered period to select. The election of the 24-week vs. an 8-week covered period could allow for additional eligible expenses to be incurred. We cannot provide specific guidance on which forgiveness period you should select.

Can we use the SBA 3508EZ for 24-week covered period or is it only to be used for the eight-week covered period?
Please see SBA Form 3508EZ instructions for criteria to use Form 3508EZ vs. Form 3508. The EZ form may be used for the eight or 24-week covered period.

What is the deadline to submit a forgiveness application?
You have 10 months after the end of your loan forgiveness covered period to apply for loan forgiveness. The loan covered period is the time during which you have to spend the PPP loan proceeds on forgivable expenses. Your loan forgiveness covered period begins on the day you received your PPP loan and lasts either 24 weeks or until December 31, 2020 (whichever is earlier).

Gathering information

Where can I find the most up-to-date policies and guidelines surrounding loan forgiveness?
The latest guidance from the Small Business Administration (SBA) can be found on the SBA website.

How do I get my loan number?
This information and other basic identifying information will be pre-populated when you begin the application; however, you can find your loan number located on the PPP loan note you signed, as well as in the DocuSign confirmation email you received after your loan was approved and funded.

What documents are required in order to apply for forgiveness?
You will need documentation of forgiveness-eligible expenses since the date your loan was disbursed. This will include payroll costs incurred during the covered period as well as documentation of the number of full time equivalent (FTE) employees, and permissible operational business expenses such as mortgage interest payments, rent or lease payments, and utility payments. You can learn more about the list of required documents and instructions here.

What other expenses (non-payroll) qualify for forgiveness?
The full list of supporting documentation that may be required is available as part of the loan forgiveness application instructions on the SBA Website at the links below.

General questions about forgiveness

I don’t have enough PPP funds to cover my payroll expenses. Can I deposit into my PPP account to cover an upcoming payroll?
Yes, you can make a deposit into your deposit account that was used for funding your PPP loan.

Am I still eligible for forgiveness if I also have an Economic Injury Disaster Loan?
Yes, if you took out an EIDL loan from January 31, 2020, to April 3, 2020, and used it for payroll costs, you were required to use the proceeds of your PPP loan to repay your EIDL loan. The EIDL loan amount will be included for purposes of determining the percentage of use of loan proceeds for payroll costs. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount. EIDL documentation may be needed. Visit the SBA website for more information.

What happens if I only spend 70% on payroll and 90% in total of the loan amount? Would I owe 10% back?
If only a portion of the loan is forgiven, any remaining balance due on the loan must be repaid by the borrower on or before the maturity of the loan, in accordance with the terms of your loan note. Please see SBA Website for additional guidance.

Would interest be due on the full amount or an adjusted amount?
The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. See SBA Website for additional guidance.

If I only have to use 60% of my funds directly for payroll, how do I qualify the remainder of the funds? My mortgage, interest, and other expenses will not cover the other 40%.
No more than 40% of the total forgiveness amount may be used for nonpayroll expenses including mortgage interest, rent, and utilities. Note that the 40% threshold is a maximum, not a minimum. Borrowers must use at least 60%, but up to 100%, of the total loan amount for qualifying payroll expenses. Please see SBA Website for additional guidance.

Must all of the loan proceeds be used in order to apply for forgiveness?
Borrowers who received a PPP loan before June 5, 2020 are eligible to begin requesting forgiveness eight weeks after receiving loan funding. All borrowers must have used all the loan proceeds for which they are requesting forgiveness before applying for forgiveness. However, if only a portion of the loan is forgiven, any remaining balance due on the loan must be repaid by the borrower according to the terms of the loan note. Please see the SBA Website for additional guidance. You may also want to reference the terms on your loan note that you received and signed via DocuSign.

Can I apply for a new PPP loan if I haven’t already?
Synovus is not currently accepting applications for new PPP loans.

Will my loan forgiveness amount be reduced if I laid off an employee, offered to rehire the same employee, but the employee declined the offer?
The PPP rules provide safe harbors that exempt certain borrowers who reduced headcount or salaries from reductions in loan forgiveness that might otherwise apply. Please review the instructions to the loan forgiveness applications, available on the SBA website, for more information about the safe harbors.

How can I payoff my PPP loan?
To request a payoff on your PPP loan, you can contact your Relationship Manager for more information.

Can I apply for additional Paycheck Protection Program funds?
At this time, advances on existing PPP loans are not allowed and borrowers cannot receive additional PPP loans.

What kind of support will be available throughout the forgiveness process?
Once the forgiveness process opens, you’ll have access to a team of specialists available by phone or via a Message Center in the online application portal.

Where can I find answers to outstanding questions?
Please call 1-888-SYNOVUS (796-6887) with any additional questions you may have. You may also want to visit the SBA website regarding PPP Loan Forgiveness.