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Paycheck Protection Program Forgiveness – August 2021 Update

By August 20, 2021August 23rd, 2021Small Business


It’s a been a while since we discussed Paycheck Protection Program forgiveness so here is a quick update.

Forgiveness Timing

I outlined the forgiveness timeline in a November 2020 Update. As a quick recap:

  • Loan Payment Deferral – Businesses have 10 months after their coverage period to defer loan payments. Best to get those forgiven quickly.
  • Bank Review – Banks have up to 60 days to review loan forgiveness. Most will review faster if the application is well documented.
  • SBA Review – The Small Business Administration (SBA) has 90 days to review the loan for forgiveness approval. We have yet to see the SBA take anything close to 90 days.


We’ve had many months of doing forgiveness for customers and here are some key takeaways:

  • Payroll reports – Most banks take payroll reports as proof of spend above everything else. If you can show loan usage with these reports, there is little push back.
  • 24-Week Coverage Period – There were two options for coverage period: 8 or 24 weeks where the spend during that time could be applied towards loan forgiveness. With the loans based on 10 weeks of payroll costs, the 24-week period is usually a guarantee to achieve forgiveness.
  • SBA Approval – Loan forgiveness isn’t guaranteed, but we’ve yet to see one that we’ve supported get rejected. We haven’t even seen requests from the SBA for additional information.

2nd Draw and 2020 1st Draw Loan Forgiveness

The big update is there is a new SBA direct forgiveness portal for loans that are $150,000 or less. This only applies to participating lenders. Loans greater than $150,000 or from lenders who aren’t participating with the direct forgiveness portal still need to go through the lender’s application process.

We are finding that some lenders are not yet taking applications for 2nd Draw or 2020 1st Draw loans, but we expect that to change in coming weeks.


Forgiveness is all but guaranteed. The process has been tested and streamlined. Don’t delay and reach out to us if you need help.