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PPP Loan Forgiveness Resources

Last Updated: 3/05/2021

The information provided is intended for informational use only and is subject to change.

Eastern is now accepting applications for loan forgiveness

On December 27, 2020, new federal stimulus legislation provided additional assistance to small businesses affected by the Covid-19 pandemic. This involved changes to loan forgiveness, including a simplified forgiveness process for borrowers with loans up to $150,000 and expanded expenses that are eligible for forgiveness.

Effective Friday, March 5, 2021, Eastern is accepting new forgiveness applications. We are also resuming the processing of previously submitted forgiveness applications. 

To help with your planning, please refer to this resource site which provides highlights based on the latest guidance from the Small Business Administration (SBA), keeping in mind this is a fluid situation and we’ll keep you informed if information changes.

Please be alert – scammers attempt to take advantage of PPP programs to perpetuate fraudulent activity. If you are contacted by the SBA directly, notify your Eastern banker immediately for assistance and before providing any information. Learn more about COVID-19 scams here.

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First-time borrowers: 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 the loan disbursement:

     •  Employee and compensation levels are maintained

     •  The loan proceeds are spent on payroll costs and other eligible expenses; and

     •  At least 60 percent of the proceeds are spent on payroll costs

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Second-time borrowers: 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 the loan disbursement. The terms are similar to first draw with some additional guidance on application sequence:

     •  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 percent of the proceeds are spent on payroll costs

     •  Must apply for forgiveness for First Draw loan before or simultaneously with the Second Draw forgiveness application

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When to apply for loan forgiveness

  • Once all loan proceeds for which you are requesting forgiveness have been used.
  • You can apply for forgiveness any time up to the maturity date of the loan.
  • If you 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 you will need to begin making loan payments to Eastern Bank.  We will notify you via email when these dates apply. 

5 Steps to loan forgiveness

Applying for loan forgiveness through Eastern involves 5 steps:

Step 1 – Learning about our automated process

Step 2 – Compiling your documentation

Step 3 – Submitting your application: what to expect

Step 4 – Staying informed

Step 5 – Understanding your records retention requirement

Please bookmark this page and check back for updates!  There have been several legislative changes to the Paycheck Protection Program, and we will be updating content and adding information frequently. 

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Step 1. Learning about our automated process

Eastern PPP borrowers will use our online portal to apply for forgiveness. Paper applications outside of the portal are not possible.

The documentation you may need to provide depends on your loan amount and the expenses you are submitting to be considered for forgiveness:

Loans $150K and under:

     •  You will complete the online application only, but you do not need to submit documents as part of the forgiveness application.

     •  You should retain the necessary documents (outlined below) for your records. You may be asked by the SBA to provide them later if your loan is ever selected for review.

Loans over 150K:

     •  You will complete the application and upload the appropriate documentation as outlined below.

     •  Note: you will need to provide proof of payment for each relevant category.

Please note, recent legislation has eliminated the original requirement to deduct the amount of EIDL Advance you may have received from your PPP loan forgiveness. Additional guidance and updated forms are forthcoming.

 

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Step 2. Compiling your documentation

Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period): click here for more information.

Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020): click here for more information.

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Step 3. Submitting your application: what to expect

After compiling the necessary documentation and completing the appropriate online application, you will submit your application to Eastern for review.

     •  Remember: click all the way through until you get the success message confirming your submission to the bank!

     •  For loans over $150,000, you will need to upload the documents outlined above with your application. If we require additional clarification or documents, we will contact you.

     •  Please note that PPP lenders like Eastern have 60 days to complete the review process and the SBA has an additional 90 days to complete their process.

 

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Step 4. Keeping you informed

     •  Once you submit your application, it will be assigned to a banker to review. If we have questions or require additional documents (for amounts over $150,000) we will be in touch.

     •  Our online application portal provides application process updates, so make sure to bookmark that and refer back to it for easy updates.

     •  Assuming your PPP loan is forgiven, you will receive notification from the SBA.

     •  We will also notify you of the forgiveness amount paid by the SBA and/or the date on which your first payment will be due, if applicable.

     •  In some instances, the SBA may ask to review your loan. If such a review occurs, we will notify you. You have the right to appeal certain SBA loan review decisions.

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Step 5. Understanding your records retention requirement

As the Borrower, you must:

     •  Retain all supporting documentation in your files for six years after the date the loan is forgiven or repaid in full, and

     •  Permit authorized representatives of the SBA, including representatives of its Office of Inspector General, to access such files upon request.

     •  If asked, you will need to provide documentation independently to Eastern Bank to satisfy relevant Federal, State, local or other statutory or regulatory requirements or in connection with an SBA loan review or audit.

The information provided is intended for informational use only and is subject to change.

 

FAQs

Frequently Asked Questions about PPP Loan Forgiveness (10-13-2020) 


Resources

Government Resources

Forgiveness forms and instructions

While we will only be accepting Loan Forgiveness applications via our online portal, we are providing links to the SBA-provided forms below should you want to consult those as part of your application preparation.  

Eastern Bank resources:

  • For your convenience, our dedicated PPP inquiry e-mail address is staffed during business hours by bankers who can assist with questions. E-mail us at: PPPupdate@easternbank.com.
     
  • We are offering Eastern Bank business customers complimentary access to Monit®*, a digital financial assistant that can help track PPP related expenses as you may prepare for your loan forgiveness application. To learn more, click here.

The information provided is intended for informational use only and is subject to change.

*Monit is offered through Signal Financial Technologies. Signal is a third-party service provider and not an affiliate of Eastern Bank.

 

Click Here to Begin Your Application

Note: if you have previously submitted a loan forgiveness application with us, you can review the status of your application by clicking here.

 

Be Aware of COVID-19 Scams

Please be alert – scammers attempt to take advantage of events like this to perpetrate fraudulent activity. Therefore now more than ever, we encourage you to remain vigilant at this time to protect yourself.
Always obtain your information from credible sources and if you are unsure of the source, do not take any action.

If you are a PPP loan customer:

  • Any Small Business Administration (SBA) loan is publicly available information. This means your name, address and loan guarantor are easily searchable by fraudsters.
  • The SBA may be contacting PPP loan recipients directly as part of its own guidelines. If you are contacted by the SBA directly, notify your Eastern banker immediately for assistance and before providing any information.
  • There are reports of phishing activities around PPP loans and fraudsters appearing as the SBA. 

Helpful links:

The information provided is intended for informational use only and is subject to change.