SBA PPP Loan Forgiveness Rules and Requirements


Please review this information in its entirety before attempting to apply for forgiveness for your Small Business Administration (SBA) Paycheck Protection Program (PPP) loan.


First Federal Bank Process

We will be using an online application portal for the forgiveness application process. We are not yet accepting forgiveness applications as we await additional information from the SBA to finalize our process.  We will provide updates to our customers as the information becomes available.


Tax/Accounting Advice

First Federal Bank is providing this general information as a courtesy to assist you in requesting forgiveness from the SBA for your loan and should not be construed as tax or legal advice. You should consult with your CPA, tax advisor, financial advisor or attorney for tax and legal guidance related to your specific circumstances.


General Overview

While First Federal Bank will assist in the forgiveness application process, the amount of loan forgiveness is determined solely by, and is subject to, the sole approval of the SBA. Additionally, the amount of loan forgiveness as determined by the SBA may be less than the loan amount.  In this case, the business will be fully responsible to pay the remaining balance.

The Paycheck Protection Program Flexibility Act (PPPFA) of 2020 was signed into law on June 5th. Among the changes made by the PPPFA are:

  • increasing the amount of loan proceeds able to be spent on non-payroll costs from 25% to 40%;
  • extending the “covered period” during which borrowers can spend forgivable expenses from 8 weeks to 24 weeks (although borrowers can choose to use the original 8 week period);
  • extending the loan maturity date on post PPPFA loans from two years to five years; and
  • extending the deadline for rehiring employees to December 31, 2020 (up from June 30, 2020).

On June 17th, the SBA released additional guidance pertaining to the PPPFA, including an update to the PPP loan forgiveness application. There are now two separate application forms which reflect borrower-friendly changes to the forgiveness calculations contained within the PPPFA.  While these are positive changes for most borrowers, there is additional guidance pending related to open questions regarding how forgiveness will be determined for certain borrowers.

We continue to encourage you to check the SBA Website regularly for the most up to date information. 



The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA


Download Form 3508EZ
Download the instructions for Form 3508EZ
Download the revised Form 3508
Download the instructions for Form 3508
Read the interim final rule


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All credit products are subject to approval.

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