Apply for Paycheck Protection Program Loan Forgiveness

M&T’s PPP loan forgiveness application is open for PPP loans received in 2020. A link to the loan forgiveness application was emailed to you. If you haven’t received this email, or if you have any questions, please call 1-800-724-6070.

PPP Loan Forgiveness Tools to Help You Plan and Organize

The resources below will provide you with information you need to prepare, including some of your top loan forgiveness questions.

Streamlined Loan Forgiveness for < $150,000

Our simplified loan forgiveness application for loans up to $150,000 is now available in our online portal.

Loan Forgiveness Webinar

Watch our loan forgiveness webinar, which provides helpful tips on Paycheck Protection Program Loan Forgiveness and details on the loan forgiveness application process.

Overview of Loan Forgiveness >

Loan Forgiveness Checklist

Borrowers will need to maintain (and in some cases submit) documentation as part of the loan forgiveness application process. Take advantage of our loan forgiveness checklist to help with your preparation.

Learn More >

SBA Paycheck Protection Program

M&T believes that transparency is important. It is our promise to help our businesses answer questions and stay informed on SBA guidance about the Paycheck Protection Program.

Loan Forgiveness

How and when do I apply?

M&T’s online loan forgiveness portal is open. Instructions on how to access the portal have been sent via email. If you haven’t received this email, or if you have any questions, please call your Relationship Manager, local branch, or the Telephone Contact Center at 1-800-724-6070.

A borrower can apply for loan forgiveness once all their loan proceeds have been used, any time up to the maturity date of their PPP loan. If a borrower doesn’t apply for forgiveness within 10 months after the last day of their covered period, then PPP loan payments are no longer deferred, and loan payments must be made to the lender.

How do I know if I can use SBA Form 3508S?

A First Draw loan borrower that received a loan of $150,000 or less should use the SBA Form 3508S and isn’t required to submit any documentation at the time of application. 

However, a borrower that received a Second Draw loan of $150,000 or less and is using the SBA Form 3508S must, before or at the time of application for loan forgiveness, submit documentation that they experienced a reduction in revenue, unless that documentation was already provided at the time of application for the Second Draw PPP Loan.

NOTE: Only borrowers with loans of $50,000 or less, other than any borrower that together with its affiliates received First Draw Loans totaling $2 million or more or Second Draw Loans totaling $2 million or more, are exempt from any reductions to the loan forgiveness amount based on reductions in FTE employees or reductions in employee salary or wages that would otherwise apply. A borrower with a loan greater than $50,000 and up to $150,000 must comply with the requirements under the Paycheck Protection Program, including calculating any reduction in forgiveness amounts based on reductions in FTEs or employee salary or wages.

How long do I have to allocate the funds received from the loan disbursement?

Expenses eligible for forgiveness are those that incurred over an 8 (56 days) to 24-week (168 days) period.

Which covered period is right for me?

A borrower should choose a covered period that will allow all eligible payroll and non-payroll expenses to be paid out prior to applying for loan forgiveness. The covered period begins on the day the PPP funds were deposited into your account. It ends on a date selected by you that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement. The covered period chosen needs to align with use of eligible payroll and non-payroll expenses, payment and documentation.

Example: PPP funds were exhausted during Week 9. The chosen covered period for the PPP loan forgiveness application would be a 9-week covered period.

What happens to the portion of my PPP loan that isn't forgiven?

For any amount not forgiven, the original terms in the promissory note will apply. A payment recalculation of the unforgiven portion will be conducted for balanced principal and interest payments (P&I) over the remaining term of the loan. 

What costs are eligible to be forgiven?

The PPP Flexibility Act revised the payroll requirement to 60% usage for payroll costs (payroll expenses, including health and retirement benefits, and payment of state and local taxes.)

Note: Owner-employees and self-employed individual payroll compensation capped at lesser of 8/52 of 2019 or 2020 compensation levels or $15,385 for the 8-week covered period or (2.5/12) of 2019 or 2020 net profit up to $20,833 for the 24-week covered period per individual in total across all businesses does not include health benefits or retirement plan contributions. 40% usage for other eligible business expenses. 

The Consolidated Appropriations Act, 2021 added four new categories to eligible non-payroll expenses:

  • Business mortgage interest payments
  • Business rent or lease payments
  • Business utility payments
  • Covered operations expenditures
  • Covered property damage costs
  • Covered supplier costs
  • Covered worker protection expenditures

Note: Mortgage loans, utilities, rent and lease agreements had to be in effect before February 15, 2020.

What documents are needed for Payroll Expenses?

  • Tax forms and bank account statements or third-party payroll service provider reports documenting cash compensation paid to employees
  • Tax forms or equivalent third-party payroll service provider reports for: payroll tax filings and state quarterly wage reporting and unemployment insurance tax filings
  • Payment receipts, canceled checks, or account statements documenting employee health insurance and retirement plan contributions
  • FTE documentation: any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for reductions in work schedule; documentation showing average number of FTE employees

What documents are needed for Non-Payroll Expenses?

  • Business mortgage interest payments:
    • Amortization schedule and canceled checks; OR
    • Bank statements from February 2020 and incurred or paid during your chosen covered period
  • Business rent and lease payments:
    • Copy of current lease and receipts; OR
    • Canceled checks or bank statements from February 2020 and incurred or paid during your chosen covered period
  • Business utility payments:
    • Copy of invoices from February 2020 and incurred or paid during your chosen covered period; AND
    • Statement paid during the covered period or incurred during the covered period. Additionally, through the month following the coverage period; AND
    • Receipts, canceled checks, or account statements
  • Covered operations expenditures:
    • Copy of invoices, orders, or purchase orders paid during the covered period; AND
    • Receipts, canceled checks, or account statements verifying those eligible payments
  • Covered property damage costs
    • Copy of invoices, orders, or purchase orders paid during the covered period; AND
    • Receipts, canceled checks, or account statements verifying those eligible payments; AND
    • Documentation that the costs were related to property damage and vandalism or looting due to public disturbances that occurred during 2020 and such costs were not covered by insurance or other compensation
  • Covered supplier costs
    • Copy of contracts, orders, or purchase orders in effect at any time before the covered period (except for perishable goods), copy of invoices, orders, or purchase orders paid during the covered period; AND
    • Receipts, canceled checks, or account statements verifying those eligible payments
  • Covered worker protection expenditures
    • Copy of invoices, orders, or purchase orders paid during the covered period; AND
    • Receipts, canceled checks, or account statements verifying those eligible payments; AND
    • Documentation that the expenditures were used by the Borrower to comply with applicable COVID-19 guidance during the covered period.

Is interest on non-mortgage debt a forgivable expense, such as term debt, Line of Credit (LOC) or Credit Card (CC) debt?

No, the only interest payments that can be forgiven is on a business mortgage obligation on real or personal property that was incurred before February 15, 2020. A loan secured by movable personal property is a chattel mortgage (as opposed to a conventional mortgage).

Are bonuses/hazard pay permitted?

If an employee's total compensation does not exceed $100,000 on an annualized basis, the employee's hazard pay and bonuses are eligible for loan forgiveness because they constitute a supplement to salary or wages, and are compensation. As a reminder for the self-employed and partners, it cannot exceed 8/52 or (2.5/12) of 2019 or 2020 net profits.

What happens if I use funding from the PPP for non-eligible expenses?

Per SBA guidance, if you use PPP funds for unauthorized purposes, the SBA will direct you to repay those amounts. If you, one of your shareholders, members, or partners knowingly uses PPP funds for unauthorized purposes, the SBA will very likely take recourse, which could include charges for fraud. Please consult tax, legal or accounting advisors for professional advice.

What is the maximum amount of loan forgiveness that can be requested for the payroll compensation of owner-employees and self-employed individuals?

Compensation for 8-week covered period is capped at lesser of 8/52 of 2019 or 2020 net profits or $15,385 per individual in total across all businesses.

Compensation for 24-week covered period is (2.5/12) months' worth of 2019 or 2020 net profit up to $20,833 per individual in total across all businesses. Excluding any qualified sick leave amount for which a credit is claimed under the Families First Coronavirus Response Act (Section 7004)

What will a reduction in employees' salary or wages have on the loan forgiveness amount?

A reduction in an employee's salary or wages in excess of 25% will generally result in a reduction in the loan forgiveness amount unless an exception applies.

Example: If a borrower had 10.0 FTE employees during the reference period and this declined to 8.0 FTE employees during the covered period, the percentage of FTE employees declined by 20 percent and thus only 80 percent of otherwise eligible expenses are available for forgiveness.

 

Examples of FTE Reduction Exceptions:

  1.  Any positions where a borrower made a good-faith, written offer to rehire an individual who was an employee on February 15, 2020, and were unable to hire similarly qualified employees for unfilled positions by the most recent full quarter, which the employee was employed before the covered period;
  2. Any positions where a borrower made a good-faith, written offer to restore any reduction in hours, at the same salary or wages, during the covered period and the employee rejected the offer
  3. Any employees who during the covered period (a) were fired for cause, (b) voluntarily resigned, or (c) voluntarily requested and received a reduction of their hours

If the average number of FTE employees during the covered period is less than during the reference period selected by the borrower, the total eligible expenses available for forgiveness is reduced proportionally by the percentage reduction in FTE employees. This is subject to exceptions for borrowers who restore reduced wages or salaries or meets one of the FTE Reduction Safe Harbors. This reduction calculation is performed on a per employee basis, not in the aggregate.

FTE Safe Harbors:

  1. The borrower is exempt from a reduction in loan forgiveness based on a reduction in FTE employees if the borrower, in good faith, is able to document that it was unable to operate between February 15, 2020, and the end of the covered period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 (or, for a PPP loan made after December 27, 2020, requirements established or guidance issued between March 1, 2020 and the last day of the covered period)
  2. The borrower is exempt from the reduction in loan forgiveness based on a reduction in FTE employees described above if both of the following conditions are met:
    1. the borrower reduced its FTE employee levels in the period beginning February 15, 2020, and ending April 26, 2020; and
    2. the borrower then restored its FTE employee levels to its FTE employee levels in the Borrower’s pay period that included February 15, 2020 by not later than December 31, 2020, for a PPP loan made before December 27, 2020, or the last day of the covered period, for a PPP loan made after December 27, 2020

What do I do with employees that refuse to come back to work?

If a return to work offer at the same salary/wages/hour was rejected by an employee, the borrower must maintain records documenting the written offer and its rejection and inform the applicable state unemployment insurance office of such employee's rejected offer of reemployment within 30 days of the employee's rejection of the offer. The SBA will be posting state unemployment offices on the SBA website.

Can I rehire employees that were laid off or put on furlough?

Yes

Any borrower that obtained a PPP loan from M&T may apply for forgiveness. However, in order to apply through our online portal, the individual that applied online with M&T for the PPP loan must be the same individual that submits the loan forgiveness application. Please contact us if you need assistance.

M&T has 60 days to render a decision and submit the PPP loan forgiveness application to the SBA. The SBA then has up to 90 days to confirm the loan forgiveness application before it remits funds to be applied to the PPP loan.

If you apply for loan forgiveness using our online portal, the SBA and Lender PPP loan numbers will be automatically populated. In the event you need to apply for loan forgiveness with a paper application, an M&T representative can assist with this information.

The SBA defines a full-time equivalent as an employee who works 40 or more hours per week. You can calculate FTE counts in one of two ways:

Option 1: for each employee, take the average number of hours paid each week, divide by 40, and round to the nearest tenth

Example: 37.5(hours)/40(hours) = 0.9 FTE or 15(hours)/40(hours) = 0.3 FTE

Option 2: a simplified method that assigns a 1.0 for employees that work 40 hours or more per week and 0.5 for employees who work fewer hours

It is important to note that the FTE calculation must be used consistently throughout the loan forgiveness process.

You can apply any time until the date your PPP loan matures. However, you are only able to apply for loan forgiveness once. If you are seeking full forgiveness, it would be beneficial to apply for loan forgiveness when you have used all your PPP funds on eligible expenses, and you have all the necessary supporting documentation.  

Based on information from the SBA as of Jan. 19, 2020

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The content of this page is for informational purposes only. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. Please consult with the professionals of your choice to discuss your situation.