PPP Loan Forgiveness

The SBA has stipulated that at least 60% of your loan must go towards payroll. The additional 40% can be applied towards utility bills, rent, as well as mortgage interest.  Backup proof of the utilization of funds with the above parameters within 24 weeks of funding, as well as a completed SBA PPP Forgiveness Application (either the SBA Form 3508 EZ, SBA Form 3508, or SBA Form 3508S) are needed for your loan to get forgiven by the SBA. 

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. 

After submitting your forgiveness application, LendingClub Bank has up to 60 days to make a recommendation to the SBA on the forgiveness amount. After the LendingClub Bank submits its recommendation to the SBA, then the SBA has up to 90 days to render final approval.   

• Here’s what you’ll need to know to apply for forgiveness

• Your Loan Number*  
• Completed SBA Form 3508EZ, SBA Form 3508, or SBA Form 3508S 
• Payroll documentation for the forgiveness period 
• Non-payroll documentation should it apply to your business: 

• • Mortgage payments  
  • Rent payments  
  • Utility payments

*Note: Your loan number has been sent to you in an email with the subject line “Information on the PPP Loan Forgiveness,” and it can also be found on your loan documents. 

The Bank will evaluate the applicable SBA Forgiveness Application Form provided by borrower, with all supporting documentation to determine the eligible forgiveness amount per SBA guidelines.

• SBA Form 3508EZ 
• SBA Form 3508 EZ Instructions 
• SBA Form 3508 
• SBA Form 3508S
• For a list of Frequently Asked Questions about the program, click here.