Applying for PPP Forgiveness - Alliance to Save the American Dream

Applying for PPP Forgiveness

October 23, 2020 - Victor Rogers

Starting in August, the Small Business Administration (SBA) began accepting applications to have loans that were issued forgiven and in early October began issuing forgiveness to those that were approved.  More than $500 billion in forgivable loans were issued through the government’s aid initiative. As small business owners across the nation continue to submit applications, the Alliance to Save the American Dream has several key tips for small business owners to acknowledge before doing so. 

Prior to applying, those who borrowed from the Paycheck Protection Program should contact the same lender who issued the loan. The lender will submit your application to the SBA where the level of forgiveness is determined. 

The top PPP lender, JPMorgan Chase, emails customers on a limited basis and invites them to begin the application process based on when they received their loan. 

“This has helped us test the SBA’s submission process and identify some common pitfalls that we can help customers avoid,” Jen Roberts, chief executive of Chase Business Banking, said in an interview with The Wall Street Journal. 

Small business owners who are seeking forgiveness may have to wait for their lender to implement the proper technology and personnel before they begin accepting applications. 

In order to have the full amount forgiven, PPP borrowers will have to show that at least 60% of their loan is used to cover payroll costs and that the remainder of the loan is used to fund costs such as rent and utilities. The amount could be lowered if owners cut wages or laid-off employees. 

Borrowers should first focus on payroll expenses, as PPP loans can be forgiven based solely on that. The SBA and Treasury Department have three different application forms. 

The full forgiveness application and the EZ application both involve calculating the borrower’s forgiveness amount, accessing how closely you followed program guidelines and submitting supporting documentation as needed. Only certain borrowers are eligible to complete the EZ application, such as those who are self-employed or those who maintained wages and employee count at required levels.

Form 3508S, the third application, is for loans of $50,000 or less and will streamline “the PPP forgiveness process to provide financial and administrative relief,” the SBA said.

Visit our resources page to view each application and to determine which best suits you and your business. 

The Alliance to Save the American Dream is a non-profit organization dedicated to three core goals.

1. Develop an Ideas Factory to give small businesses and industries a centralized place to share innovative ideas that must be considered.

2. Build a unique Resources portal for small businesses to go to for answers or resources that address a wide range of issues or challenges.

3. Offer a new networking opportunity for small business owners to connect while also giving them a platform to share their own personal stories.

For more information, visit 


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