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.