Learn about Paycheck Protection loan forgiveness

UPDATE – June 19, 2020

On June 17, 2020, the SBA released a new, streamlined "EZ" forgiveness application, updates to the "full" forgiveness application, and an interim final rule that aligns prior SBA guidance with the recently enacted PPP Flexibility Act.

The new "EZ" application reduces the documentation and number of calculations required to apply for forgiveness. To use the new form, you must meet at least one of three criteria based on business type, level of employment, and impacts to business activity during the covered period.

Other noteworthy updates include:

• Many of the documentation requirements from earlier guidance are still in effect, and the calculation is relatively unchanged.
• The new EZ form requires you to make new certifications related to your employment levels and impacts to your business activity during the covered period.
• Both applications have been updated to reflect the new requirements that employers use at least 60% (down from 75%) of the forgiveness amount for payroll.
• Both the EZ and full application give you the option of using the original 8-week covered period (if your loan was made before June 5, 2020) or an extended 24-week covered period.
• As part of our online forgiveness process, we'll ask you questions related to payroll calculations you'll make using the "Schedule A Worksheet." You won't need to provide this document through our digital portal but be sure to maintain a copy for your records in the event it is needed for review by Synovus or the SBA.

While the Synovus forgiveness process will be completely online, it's important to educate yourself on forgiveness by reviewing the newest forms and instructions, the most current interim final rule, and any prior interim final rules (available on SBA website under "Lender Forms and Guidance").

We're looking forward to opening up our digital forgiveness process as soon as possible. Work is underway to incorporate this most recent round of guidance, and we'll continue to adapt as any new guidance is released. Thank you for your patience as we continue to receive and share these updates and prepare to launch our digital platform. We appreciate the opportunity to serve you.

Disclaimer: Synovus will process your application for loan forgiveness as the originating lender for your PPP loan based on the guidance and parameters established by the SBA, which may be subject to change. The SBA, and not Synovus, sets the criteria for loan forgiveness, including the eligibility criteria and the parameters that determine how much of your loan may be forgiven. The SBA may instruct us to hold your loan forgiveness application if it decides to conduct a review of your application, or it may instruct us to deny your loan forgiveness application. In its guidance, the SBA has indicated the reasons why it may decide to review an application for loan forgiveness.

*Synovus will consider extensions of maturity on case-by-case basis.

UPDATE – June 5, 2020

On Friday, June 5, President Trump signed the Paycheck Protection Program Flexibility Act.

The PPP Flexibility Act amends the CARES Act to modify certain provisions related to the forgiveness of loans under the Paycheck Protection Program, allowing businesses more time to spend funds and to use a larger share of the loan forgiveness amount on non-payroll costs. Modifications include:

• The option to extend the covered period for loan forgiveness from eight weeks to 24 weeks
• A change in the percentage of the funds that must be attributable to payroll as opposed to non-payroll costs from 75% to 60% in order to be eligible for forgiveness
• The option to extend your loan maturity to 5 years, if approved by the originating bank*, and the potential for a longer payment deferment period
• Extending the safe harbor period by which you can offer to rehire workers without reducing your forgiveness amount until December 31, 2020

We encourage you to review the full text of the bill here.

As a result of the new legislation, the SBA and U.S. Treasury are expected to issue new guidance, including a revised forgiveness application. Once this additional guidance is issued, we’ll need to take into account these new rules as we finalize our online forgiveness application process, which will open as soon as possible thereafter. We’ll continue to communicate with our PPP loan customers as new information becomes available.

Disclaimer: Synovus will process your application for loan forgiveness as the originating lender for your PPP loan based on the guidance and parameters established by the SBA, which may be subject to change. The SBA, and not Synovus, sets the criteria for loan forgiveness, including the eligibility criteria and the parameters that determine how much of your loan may be forgiven. The SBA may instruct us to hold your loan forgiveness application if it decides to conduct a review of your application, or it may instruct us to deny your loan forgiveness application. In its guidance, the SBA has indicated the reasons why it may decide to review an application for loan forgiveness.

*Synovus will consider extensions of maturity on case-by-case basis.

UPDATE – May 22, 2020

On Friday, May 15, the SBA and U.S. Treasury released the Paycheck Protection Loan Forgiveness Application. The application provides instructions to borrowers on their responsibilities to obtain loan forgiveness under the program, including required documentation. We’ve included some highlights below, but please refer to the latest updates from the U.S. Treasury released May 22, 2020, found here, to understand the full parameters as set forth by the SBA so far.

Eligible expenses and required documentation
The application includes detailed information about the expenses eligible for forgiveness and instructions for calculating those expenses.

Based on the parameters set forth by the SBA, we suggest that you gather documentation supporting how your loan proceeds were spent during the covered period on payroll, utilities, mortgage interest and rent including but not limited to:

• Bank account statements or third-party payroll service provider reports
• State and Federal payroll tax filings
• Payment receipts, cancelled checks, or account statements of any employer contributions to employee health insurance and retirement plans included in forgiveness amount request.
• Loan transaction history and copies of cancelled checks related to mortgage interest obligations
• Copy of current lease agreement or lessor statements and cancelled checks demonstrating payment of rent
• Utility account statements and cancelled checks
• Documentation that shows the number of FTE employees you maintained during the historical reference period you choose.
• Nonpayroll expense documentation verifying the existence of obligations prior to February 15, 2020, and receipts, canceled checks, or account statements verifying eligible payments

Safe harbors
There is a safe harbor from loan forgiveness reduction for borrowers who are able to rehire previously-displaced employees by June 30, 2020. The SBA also included an exemption from forgiveness reduction for borrowers who make a good-faith, written offer to rehire workers that was declined. Learn more about these measures in the SBA announcement, here.

What happens next
Borrowers should take time to familiarize themselves with the responsibilities the SBA has specified in the application, but please be aware that additional guidance may be released at any time, and all guidance is subject to change.

We expect to launch our digital loan forgiveness application process for uploading documentation, providing required certifications, and signing your application, beginning in mid-June.

When will the application process become available?
Borrowers should generally wait until the end of the covered period for their loan to apply for loan forgiveness.

Based on the timing of your loan funding date, you can expect to receive an email notification from us with a direct link to our online loan forgiveness application platform roughly a week ahead of when we’re officially ready to begin the process for you.