Reopening Guides:


UPDATE: The SBA has opened opened a new portal that businesses with loans of less than $150,000 can use to apply for forgiveness directly which opened on August 4. You can opt-in to the program here.

Webinar: Your guide to Paycheck Protection Program (PPP) forgiveness 

This guide follows a webinar presented by the Washington Hospitality Association and the Small Business Administration (SBA)You can see the full video here or use the links and descriptions below to find the information that is most useful to you. 



Where to get help applying for PPP forgiveness  4 minute video 

Watch this video for: 

  • a recap of SBA coronavirus economic aid funding options 
  • an overview of PPP loans and overall relief statistics 
  • an outline for PPP section of presentation  


What can businesses do to get ready – 3 minute video  

Find anything you have that can show how you used your PPP funds. First, find and review your 2019 tax return. Compare it to the information sent in at the time of application. If there are differences, it may impact your forgiveness. If you have them, you will need the following:  

  • 2019 and 2020 business Profit and Loss statements 
  • business bank account statements 
  • third party payroll records 
  • W2/W3 forms 
  • tax forms such as Form 941 
  • copies of funds transfers such as ACH & checks 
  • state wage reporting documents for unemployment and L&I 

For the employer portions of: health insurance, retirement plans and state/local taxes – payment receipts and cancelled checks or account statements. 

Tax provisions and new forgivable expenses  4.8 minute video  

New uses for PPP funds were rolled out in 2021 including 

  • certain operational expenses for business software and cloud computing for human resource and accounting systems 
  • product and service delivery costs 
  • supplier costs pursuant to a contract for goods and personal protective equipment 
  • property damage caused by civil unrest 
  • payroll costs that can include group insurance including life, disability, health, vision, and dental insurance 

All PPP loan proceeds are eligible for these itemsLoans made before, or after enactment of the new legislation can use the expanded forgivable expenses unless the first PPP loan has already been forgiven.  

Previously forgiven tax expenses are now deductible for yearend tax reporting. Remember that gross business income does not include any amount that would otherwise arise from the forgiveness of a PPP loan. 

Business tax deductions are also allowed for otherwise deductible expenses paid with proceeds of a PPP loan that is forgiven. 

Gross business income does not include forgiveness of certain loans including emergency Economic Injury Disaster Loans (EIDL) and certain loan re-payment assistance, provided in the CARES Act. 

State and local grants that you may have received in 2020 & 2021 may be reportable and taxable under federal tax laws. Please consult a CPA for more details on this matter. 

Remember: If you have multiple PPP loans, you must apply for loan forgiveness for each PPP loan separately.  

Steps to apply for loan forgiveness  4.2 minute video  

  1. Contact your PPP lender and complete the correct form or online portal. 
  1. Compile documentation.  
  1. Submit the forgiveness form and documentation if required to your lender and continue to communicate with your lender through the process. 

Remember: Borrowers may submit all loan forgiveness forms up to 10 months after the end of the borrower’s covered period.  

The borrower may submit loan forgiveness applications when 

1) the borrower has used all of the funds, 
2) the borrower has documented the use of the loan proceeds, 
3) the lender is ready to accept the applications. 

Which form do I use?  2 minute video  

If your loan is $150,000 or less, then you should use Form 3508SForm 3508EZ is available for loans of more than $150,000 that meet additional eligibility requirements. If you do not meet the requirements, you will have to fill out the 3508 long form. Learn more about the eligibility requirements in the guide to filling out the 3508EZ form below. (More details about which form to fill out are discussed later in this webinar.) 

What does it all mean? Definitions and details for all forms – 4.5 minute video 

Payroll costs are all cash contributions including: 

  • salary 
  • wages 
  • commission 
  • cash tips 
  • vacation pay 
  • hazard pay 
  • bonuses 
  • parental, family, medical and sick leave 
  • severance pay 
  • employers’ payroll costs for group life, disability, health, vision, dental plans 
  • retirement plans 
  • local and state taxes 


Loan forgiveness may be applied for within 10 months after the last day of the covered period or converts to a loan. The covered period starts on the date the PPP loan is funded.  

Payments on any remaining unforgiven loan portion start at the time the borrower is notified that all or a portion of the loan is not forgiven. 

Costs not eligible are: 

  • salaries in excess of $100K cash compensation 
  • employees outside the U.S. 
  • sick and family leave under the Families First Act 
  • independent contractors 


Audits: All PPP loan forgiveness applications require representations and certification with signature to be submitted — the borrower must certify that they know and understand the rules of the PPP including eligibility, use of proceeds and loan forgiveness amounts. 

The SBA may review PPP loans and loan forgiveness applications as it deems appropriate and at any time. 

Possible lender decisions  2 minute video  

Lender reviews – the four forgiveness decisions lenders can make 

1) Approved in full means the lender approves full forgiveness requested.  

2) Approved in part means the lender did not approve the full forgiveness amount requested but did approve a part of it.  

3) Denied means the lender denied the full amount as not forgivable.  

4) Denied without prejudice means that the SBA has informed the lender there is an ongoing loan review 


PPP forgiveness if you closed or sold your businesses  4 minute video  

In a full asset sale, the seller is responsible for the loan forgiveness application. 

If the business is closed, the business owner must still submit the loan forgiveness application if they want the loan to be forgiven.  

How to fill form 3508S  15 minute video 

Remember: For loans $50,000 and less, there is no full-time equivalent (FTE) or reduction in compensation requirement to meet. 

For loans more than $50,000, the borrower must represent and certify that: 

  • They met the FTE requirement and complied with maintaining compensation at 75% of pre-coronavirus levels.   
  • The borrower did not reduce the number of employees or the average paid hours between January 1, 2020 and the end of the covered period OR could not return to the same level of business activity as before Feb 15th, 2020 due to federal agencies and executive proclamation requirements established or guidance issued.   
  • The borrower did not reduce wages by a maximum of 25% during the covered period compared to the most recent full quarter before the covered period. 


Remember: the business Tax Identification Number (TIN) requested needs to match the number from your original application. You should consult with your lender if you are unsure which number was originally used.  

For the contact information you can list anyone, but it is recommended that you do not put a CPA or attorney.  

Include documentation if your business location or NAICS code has changed. You can find those documents or screenshot the information at or 

You can contact the regional SBA office at 2065537310 if you don’t know your PPP loan number. 

You can change any end date for the covered period between 55 days and 168 days as long as you have used all of your funds during that period.  

After you sign you will have the option to fill out demographic information. This does not affect your forgiveness and is completely voluntary. This is included to attain demographic information that the SBA is required to report to Congress 


How and when to fill 3508EZ  10 minute video 

When to use it 

You are eligible to use Form 3508EZ if your loan amount was more than $150,000 AND you meet one of these two requirements: 

  1. The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the covered period compared to the most recent full quarter before the covered period AND you did not reduce the number of employees or average paid hours between Jan. 1, 2020 and the end of the covered period.  


  1. The borrower did not reduce annual salary or hourly wages of any employee by more than 25% during the covered period compared to the most recent full quarter before the covered period AND you were unable to operate at the same level of business activity as before February 15, 2020 due to government guidance and proclamations. See the video for the full requirements.  


Completing the form 

When you are filling out the forgiveness amount calculation section, pay attention to the following: 

  • Line 2 is for out-of-pocket mortgage interest payments – not paid by the SBA or other lender 
  • On line 4, remember that garbage and sewer are not among the accepted utility payments 
  • On line 5, covered operations expenditures are fees that you would incur paying for assistance from an accountant, advisor, or similar 
  • Covered supplier costs on line 8 is also new, covered worker protection expenditures that include masks, barriers, and other safety measures you paid for to protect your employees from coronavirus. 


At the bottom of page two, while you are initialing, you only have to initial one of the statement sets you use for eligibility. There are two options. The third page includes only a signature block.  


3508 (long form)  17 minute video 

This form should be avoided if possible. To determine if you need to use the 3508 long form, you should make sure you do not meet employment requirements and are eligible for the EZ form. This form differs from the others mostly in the calculations determining safe harbor and FTE reduction. Information on that is below, and detailed steps can be found in the video tutorial with the time of each section and the title outlined below.  

The Economic Aid Act gives three choices to establish FTE Reduction Calculation for PPP loans more than $150,000 – you must have: 

  • Had no reduction in employees or average paid hours and you restored the FTE levels of Feb. 15, 2020 by no later than Dec.31, 2020, or the last day of the covered period. 
  • Safe Harbor #1 – Unable to operate between Feb. 15, 2020 and the end of your covered period at the same level of business activity as before Feb. 15, 2020, because of coronavirus compliance; or you restored your employee numbers by Dec. 31, 2020 or the end of your covered period this year. 
  • Safe Harbor #2 calculation starts with pages 5 & 6 of the 3508 instructions and Tables 1 & 2 on the Schedule A worksheet. Then complete the FTE calculation at the bottom of page 4 of the forgiveness application. 


You can watch Janie fill out the form step-by-step in the video at the following slides and times. The timestamps reference the full video 

1:08:12 – 1:08:50

filling the form FTE and additional reductions  

1:08:51 – 1:10:49

PPP schedule A worksheet 

1:10:51 – 1:12:49

FTE reduction for safe harbor 

1:12:51 – 1:15:05

transferring information from worksheet  

1:15:26 – 1:17:04 

FTE reduction quotient  

1:17:15 – 1:21:00

forgiveness amount calculation  

1:21:01 – 1:21:30

signature page  


Where to get help applying for PPP forgiveness  4 minute video 

Where to get additional information and support resources: 

The SBA has technical assistance providers in SCORE (senior core retired executives), Women’s Business Centers, Veterans Business Outreach and the SBDCs (small business development centers). 

The SBA website at can be converted to 108 additional languages with the “Translate” button. Coronavirus resources in other languages: Website for PPP info & FAQs – the SBA website can be converted into 108 languages worldwide.  

Technical Assistance for non-English speakers, and underserved communities can be found at this link – 

Washington Statewide relief coordination, resources, local lenders, technical assistance and training events at