PPP Loan Forgiveness

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Loan forgiveness information and application

April 23
This week the SBA released guidelines for the Restaurant Revitalization Fund (RRF) which was established as part of the American Rescue Plan Act to provide additional assistance to restaurants and other eligible businesses who have experienced pandemic-related revenue loss.

These eligible businesses can include:

  • Restaurants
  • Food stands, food trucks, food carts
  • Caterers
  • Bars, saloons, lounges, taverns
  • Snack and nonalcoholic beverage bars
  • Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
  • Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
  • Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
  • Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
  • Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products

Applicants will apply directly via the SBA in a forthcoming online application portal, or through an SBA-recognized Point of Sale Restaurant Partner (Clover, NCR, Square, etc.). Application pre-registration opens April 30 and the application period opens May 3. More details are available on the SBA website

  • Recipients can receive up to $10 million per business and no more than $5 million per physical location and may apply for the RRF only once.  
  • Generally, the funding amount is based on 2019 gross receipts less 2020 gross receipts less total PPP loans received (first and second draws received in both 2020 and 2021).
  • Recipients are not required to repay the funding as long as the funds are used for eligible expenses by March 11, 2023. 
  • Funds may be used for specific expenses including:
    • Business payroll costs (including sick leave)
    • Payments on any business mortgage obligation
    • Business rent payments (note: this does not include prepayment of rent)
    • Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
    • Business utility payments
    • Business maintenance expenses
    • Construction of outdoor seating
    • Business supplies (including protective equipment and cleaning materials)
    • Business food and beverage expenses (including raw materials)
    • Covered supplier costs
    • Business operating expenses
  • Additional documentation is required and specifics can be found on the SBA website.
  • Once the portal opens, for the first 21 days, the SBA will begin by funding applications where the applicant has self-certified that it meets the eligibility requirements for a small business owned by women, veterans, or socially and economically disadvantaged individuals. After 21 days, the program will open to all eligible applicants.

March 31
We are accepting PPP Loan forgiveness applications for loans funded in 2020 and First Draw loans funded before March 1, 2021. If you have used the funds on eligible expenses and are ready to apply for loan forgiveness please email pppforgiveness@nrim.com.

If you have a Second Draw loan in 2021, you will receive an email with details on how to apply for loan forgiveness once the SBA releases information on Second Draw loans. If your loan was originated after March 1 and you have used the funds on eligible expenses, please email pppforgiveness@nrim.com.

March 12
Recipients of Paycheck Protection Program loans under $150,000 have been sent email notification regarding requirements for completing PPP Loan forgiveness requests online. Northrim’s PPP Forgiveness Application web page contains a video telling how to complete form 3508S, which is required for loan forgiveness (scroll to the section labeled “S Form for Forgiveness”). Please note that PPP Loan customers have 10 months from the end of the covered period to file for forgiveness and payments are deferred during this time.


The SBA offers the following guidance for loan forgiveness terms:

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. Borrowers can apply for forgiveness any time up to the maturity date of the loan. 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.

Website screen shot

Forgiveness application help & instructions

Northrim has created an online resource to help you understand the PPP Forgiveness application. This information and step-by-step videos will walk you through the process to complete your application.

 

Contact us

For specific questions regarding your application please contact us at pppinquiries@nrim.com. Due to the volume of inquiries please allow 1-3 days for a response 

Help for small businesses

Need help navigating the various COVID-19 relief programs for small businesses? The Alaska Small Business Development Center has weekly online briefings, workshops, trainings and several online resources to assist Alaska businesses. See this special ASBDC page for details.

Beware of fraud

Since the list of PPP recipients who received loans was ordered to be made publicly available by the government, chances for fraud increases dramatically. 

 

Be advised, Northrim works with our approved vendor, Abrigo, leveraging their platform named Sageworks, to process your applications and ensure your privacy. Please beware of fraud attempts that may look like sales messages or offers of PPP forgiveness process consolidation. Scammers may ask for personal information such as account numbers, Social Security numbers or dates of birth and other details about you or your employees. Northrim will never initiate contact with customers asking for this type of information. Please call Northrim at 800-478-2265 if you suspect malicious activity or have any questions.

 

Resources

Use of PPP Funds FAQ

Use of PPP Funds FAQ

This handout gives PPP Loan recipients some guidance on the use of PPP funds.

Learn More  

SBA PPP Information

SBA PPP Information

See the Small Business Administration PPP website for details about First Draw and Second Draw loans.

Learn More  

PP Rules and Regulations

PP Rules and Regulations

Read more about the PPP Rules and Regulations posted in the Federal Register.

Learn More