SBA PPP Loan Forgiveness & Application Support

PPP Loan Forgiveness

The LiftFund partnership with Lendio to process PPP loan forgiveness applications ended on January 31st, 2022.

Good news is that you’re still able to submit your PPL loan forgiveness application with the instructions below.

PPP Loan Forgiveness Guidelines

First Draw PPP Loan forgiveness terms

First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

Employee and compensation levels are maintained
The loan proceeds are spent on payroll costs and other eligible expenses; and
At least 60% of the proceeds are spent on payroll costs

Second Draw PPP Loan forgiveness terms

Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
The loan proceeds are spent on payroll costs and other eligible expenses; and
At least 60% of the proceeds are spent on payroll costs

How and when to apply for loan forgiveness

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used on eligible expenses. Borrowers can apply for forgiveness any time up to the maturity date of the loan. However, we encourage you to start your PPP forgiveness process as soon as you are eligible to apply.

If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

PPP Loan forgiveness Application Process for LiftFund Clients

1. Select the correct PPP Forgiveness form

Inside the forgiveness application portal, you will have access to your PPP Loan information and a digital version of the PPP Forgiveness application form you may qualify for.

There are three different PPP forgiveness applications:

The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements.

If you need assistance, please send us an email to card@liftfund.com or call us at (888) 215-2373.

2. Compile your loan funds expense information and supporting documentation:

Payroll (provide documentation for all payroll periods that overlapped with the Covered Period):

Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees
Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period:
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount
Do NOT include the following when calculating eligible payroll costs for loan forgiveness:
- Qualified wages paid during April 1, 2020, through December 31, 2021, that are taken into account for purposes of claiming:
  the Employee Retention Credit under section 2301 of the CARES Act, as amended by sections 206 and 207 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (additional Guidance on the Employee Retention Credit under Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act (PDF) and Guidance on the Employee Retention Credit under the CARES Act for the First and Second Calendar Quarters of 2021 (PDF) are both available from the IRS), and the Employee Retention Credit under section 3134 of the Internal Revenue Code of 1986, as enacted by the American Rescue Plan of 2021. (Note that reporting these qualified wages in the payroll costs entered on your loan forgiveness application will affect the amount of qualified wages that can be used to claim the employee retention credit.)

Non-payroll (for expenses that were incurred or paid during the Covered Period and showing that obligations or services existed prior to February 15, 2020 for the first three listed obligations/services):

Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements
Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
Business utility payments: Copies of invoices and receipts, cancelled checks or account statements
Covered operations expenditures: Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments
Covered property damage costs: Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments, and verification that costs were related to uninsured property damage due to public disturbance vandalism or looting that occurred in 2020
Covered supplier costs: Copy of contracts, orders or purchase orders in effect at any time before the Covered Period (except for perishable goods), and copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments
Covered worker protection expenditures: Copy of invoices, orders or purchase orders paid, and receipts, cancelled checks or account statements verifying eligible payments, and verification that expenditures were used to comply with COVID-19 guidance

This list of documents required to be submitted to your lender is not all-inclusive.

3. Sign and Submit the forgiveness form and documentation:

Complete your loan forgiveness application, sign attestations and completed application, and submit it to card@LiftFund.com with the required supporting documents and follow up with your lender to submit additional documentation as requested.

The documents required to be submitted with your application vary by PPP forgiveness application form; however even in the instance where you are not required to submit supporting documentation, you are required to have the information readily available in case of an audit. Borrowers are required to save the supporting information for four years.

4. LiftFund will review and submit application to SBA for review and approval:

LiftFund has 60 days to review and submit your PPP forgiveness application to SBA. SBA has up to 90 days to review and approve the forgiveness request.

If SBA undertakes a review of your loan, your lender will notify you of the review and the SBA loan review decision. Your lender is responsible for notifying you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.

Please find complete Loan Forgiveness Requirements and Loan Review Procedures as Amended by the Economic Aid Act Here