Hailey Johnson
As of 2020, many banks were not yet accepting PPP forgiveness applications. Major lending institutions like Chase and PNC Bank had not begun accepting forgiveness applications, according to their websites. However, some banks, including Fifth Third and First Choice, were accepting applications. Lenders were awaiting further guidance from the federal government and potential legislative action on the Paycheck Protection Program. The process has been characterised by delays and unclear guidance, with the SBA releasing a streamlined form after criticism of the original 11-page application. As of March 2024, all borrowers can use the SBA's direct forgiveness portal, which takes around 15 minutes to complete.
| Characteristics | Values |
|---|---|
| Banks accepting PPP forgiveness applications | Webster Bank, Fifth Third Bank, First Choice, Greene County Bancorp |
| Banks not accepting PPP forgiveness applications | Chase, PNC Bank, Bank of America, Wells Fargo, JPMorgan Chase |
| Banks with no clear information | N/A |
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What You'll Learn
- Banks like Chase and PNC are not accepting forgiveness applications
- Some banks are accepting applications, but awaiting SBA approval
- Bank of America will email customers with instructions on how to apply
- Wells Fargo will also send an email when its PPP loan forgiveness application is available
- Fifth Third is accepting PPP forgiveness applications via its online portal
Banks like Chase and PNC are not accepting forgiveness applications
As of 2020, major lending institutions like Chase and PNC Bank have not begun accepting forgiveness applications, according to their websites. Chase is instead directing customers to contact their Business Solutions team to submit a PPP forgiveness request or resubmission. They are no longer accepting online requests.
PNC, on the other hand, is continuing to develop its digital PPP forgiveness application and enhance the process based on feedback from a customer pilot program. They plan to alert borrowers with an email notification once their digital application portal is available to accept applications.
Some banks, however, are accepting applications, though these are awaiting approval by the SBA. Fifth Third, for example, is accepting PPP forgiveness applications via its online self-service application portal. Similarly, Webster Bank is accepting PPP Loan Forgiveness applications for all eligible PPP Loans.
Many banks are waiting to see if new guidance or legislation will streamline the forgiveness process. They are also awaiting potential legislative action on the Paycheck Protection Program and want to see if Congress will pass legislation providing automatic forgiveness for loans of $150,000 or less.
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Some banks are accepting applications, but awaiting SBA approval
As of September 2020, some banks were accepting PPP forgiveness applications, but these were awaiting approval from the Small Business Administration (SBA). Major lending institutions like Chase and PNC Bank had not begun accepting forgiveness applications, according to their websites. However, Fifth Third Bank was accepting PPP forgiveness applications via its online self-service application portal. Similarly, Webster Bank was accepting PPP Loan Forgiveness applications for all eligible PPP Loans.
Some banks were holding off on processing applications, hoping for legislative action or a simplification of the process. The forgiveness process has been stressful for both borrowers and lenders, characterised by delays and unclear guidance. Lenders are awaiting more guidance from the federal government and potential legislative action on the Paycheck Protection Program.
The SBA will remit the appropriate forgiveness amount to the lender within 90 days of the lender issuing its decision. Borrowers can apply for forgiveness at any time before the loan matures, but if they do not apply within 10 months of the last day of the covered period, loan payments are no longer deferred, and borrowers must begin making payments.
The SBA's direct forgiveness portal, effective from March 13, 2024, allows borrowers to apply for forgiveness directly. Lenders can still accept PPP forgiveness applications directly, and each forgiveness form has unique instructions for the required documentation.
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Bank of America will email customers with instructions on how to apply
Many banks are yet to start accepting forgiveness applications for the Paycheck Protection Program (PPP) loans. Major lending institutions like Chase and PNC Bank are not yet accepting forgiveness applications, according to their websites. However, some banks have started accepting applications, and Bank of America is one of them.
Bank of America has stated that eligible clients can apply for PPP loan forgiveness through their portal. The bank will email clients with a link to access the loan forgiveness application when it becomes available. The application process is digital and can be completed in about 15 minutes. Bank of America also provides a documentation guide to help applicants prepare.
The bank recommends that applicants carefully review and fill out the relevant SBA Loan Forgiveness Application Form and gather any required documentation before applying online. The SBA Form 3508 and 3508EZ require borrowers to provide additional documentation, including bank account statements, tax forms, and payroll reports.
It is important to note that borrowers can apply for forgiveness at any time before the loan matures. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, PPP loan payments are no longer deferred, and borrowers must begin making payments.
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Wells Fargo will also send an email when its PPP loan forgiveness application is available
As of September 2020, many banks were not yet accepting PPP forgiveness applications. Major lending institutions like Chase and PNC Bank had not begun accepting forgiveness applications, according to their websites. However, some banks were accepting applications, and borrowers could also apply for forgiveness through the SBA's direct forgiveness portal.
Wells Fargo is one of the banks that will notify customers by email when its PPP loan forgiveness application is available. In the meantime, Wells Fargo is offering advice on how to gather the recommended supporting documents and prepare the application. The bank will only accept online applications for forgiveness, and customers will see the application link in their Account Summary after signing on and expanding each eligible PPP loan account.
Wells Fargo offers three types of PPP loan forgiveness application forms: Form 3508S, Form 3508EZ, and Form 3508. Form 3508S is suitable for loans of $150,000 or less and requires less information, potentially resulting in shorter processing times. Form 3508EZ is recommended if you are ineligible for Form 3508S but meet one of the two eligibility conditions. Form 3508 is for borrowers who do not meet the eligibility criteria for the other two forms.
Wells Fargo will notify customers within five business days of their loan forgiveness decision. If the application is denied, an SBA Loan Review will be automatically initiated. If the loan is only partially forgiven, Wells Fargo will provide a statement with the amount and date of the first payment for the unforgiven portion.
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Fifth Third is accepting PPP forgiveness applications via its online portal
As of September 2020, many banks were not yet accepting PPP forgiveness applications. Major lending institutions like Chase and PNC Bank had not begun accepting forgiveness applications, according to their websites. Lenders were awaiting further guidance from the federal government and potential legislative action on the Paycheck Protection Program.
However, some banks were accepting applications, and Fifth Third was one of them. Fifth Third Bank is committed to supporting its clients with PPP loans and is accepting PPP forgiveness applications via its online portal. Borrowers will receive an email with login instructions and have also been provided with an SBA PPP Loan Forgiveness Tool Kit to help them prepare.
The Fifth Third website offers business guidance, helpful resources, and relief options amid COVID-19. It also provides a resource to help clients understand the PPP loan forgiveness application process and answers frequently asked questions.
It is important to note that borrowers can apply for forgiveness at any time before the loan matures. However, if they do not apply within 10 months after the last day of the covered period, PPP loan payments are no longer deferred, and borrowers must begin making payments. Applications must be submitted in English and include all supporting documentation.
While the Small Business Administration (SBA) opened its Paycheck Protection Program forgiveness portal on August 10, 2020, many banks were not ready to accept applications. This portal allows lenders to submit completed PPP loan forgiveness applications for review.
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Frequently asked questions
Yes, some banks are accepting PPP forgiveness applications. For example, Fifth Third Bank is accepting applications via its online self-service application portal. Webster Bank is also accepting PPP Loan Forgiveness applications for all eligible PPP Loans. However, major lending institutions like Chase and PNC Bank have not started accepting forgiveness applications.
The process for applying for PPP loan forgiveness varies depending on the lender. Some lenders, such as Fifth Third Bank, provide borrowers with login instructions via email to access their online portal. Other lenders, like Wells Fargo, plan to email customers specific instructions on how and when they can apply. Borrowers can also apply for forgiveness using the SBA's direct forgiveness portal, which takes around 15 minutes.
The documentation required for PPP loan forgiveness applications includes:
- Documentation for all payroll periods that overlapped with the Covered Period, such as bank account statements or third-party payroll service provider reports.
- Tax forms or equivalent third-party payroll service provider reports for the periods that overlap with the Covered Period.
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
