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Paycheck Protection Program

Please click the headings below for more information related to the Paycheck Protection Program (PPP), changes to the requirements for forgiveness under the PPP Flexibility Act, and the process for completing the PPP Loan Forgiveness Application along with supporting documentation.

Additional information will be made available as information is released. Please reach out to your Relationship Manager directly with any questions, or contact our Customer Care Team at 518.730.3000.

Paycheck Protection Program Flexibility Act

Sweeping changes to the Small Business Administration's Paycheck Protection Program have been signed into law, making the program's lending terms more favorable to restaurants, retailers, and other businesses.

The Paycheck Protection Program Flexibility Act:

  • Extends the “covered period” under which small businesses can spend the loan proceeds from eight weeks to 24 weeks, or until December 31, 2020.
  • Removes the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
  • Expands the 25% cap to use PPP funds on non-payroll expenses, such as rent, mortgage interest and utilities, to 40% of the total loan. That lowers the 75% requirement for payroll expenses to 60% to get maximum forgiveness.
  • Allows small businesses to take a PPP loan and also qualify for a separate, recently enacted tax credit to defer payroll taxes, currently prohibited to prevent “double dipping.”
  • Extends the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
  • Gives small businesses more time to rehire employees or to obtain forgiveness for the loan if social-distancing guidelines and health-related actions from the Centers for Disease Control and Prevention or other agencies prevented the business from operating at the same capacity as it had before March 1.
  • Extends the period for when a business can apply for loan forgiveness, from within six months to within 10 months of the last day of the covered period, before it must start making interest and principal payments. Under the new law, PPP loan interest and payment of principal and fees will be deferred until the loan is forgiven by the lender.

Forgiveness Application Process

Forgiveness Form 3508EZ

The following information pertains to clients who wish to apply for PPP Loan Forgiveness using Form 3508EZ, which you may use if you meet one of the following criteria:

  • You are self-employed, independent contractor, or a sole proprietor with no employees;
  • You are a business with employees and you did not reduce annual salary or hourly wages of your employees by more than 25% and you did not reduce the number of employees through your covered period; or
  • You are a business with employees and you did not reduce annual salary or hourly wages of your employees by more than 25%, but you reduced headcount because you were unable to operate at full capacity to stay in compliance with government issued regulations.

If you do not meet the above criteria, then you must use the standard Form 3508 to apply for forgiveness. Please email sbaloans@pioneerny.com if you do not qualify for the EZ form.


When Should I Apply for Forgiveness?

You have the option to utilize the 8-week covered period or the extended 24-week covered period. Things to know about this option:

  • If you elect the 24-week option period, you can apply for forgiveness at any time, up to 10 months from the last date of your Covered Period.
  • Once you can document that you spent 100% of the loan proceeds on business expenses eligible for loan forgiveness, you should apply for your forgiveness. Eligible costs include:
    • Payroll expenses, including salaries, wages, tips, commissions, and bonuses during the covered period not in excess of $100,000 per year, per employee, annualized. Basically up to $1,923 per week per employee.
  • Costs of health care insurance premium and retirement contributions made by you as the employer as a benefit to your employee (excludes employee paid portion)
  • Rent and lease expenses for business location and business assets that were in place prior to 2/15/2020
  • Interest payments on business loans that were in place prior to 2/15/2020
  • Utilities including electricity, gas, phone, water, trash removal, transportation expenses (gas and/or mileage reimbursement), internet and security monitoring

How Long Will it Take?

Although there is no process published by the SBA and US Treasury for submitting the applications for forgiveness to the SBA, the lender has been given clear guidance on its responsibilities to process the applications.

  • Once you have submitted in the forms and supporting documentation, the lender has 60 days to process and submit to the SBA.
  • The SBA has up to 90 days to repay the lender the forgiveness portion of the loan including all accrued interest on the portion forgiven.

Making the EZ Process Easier

As long as you meet the following criteria, the easiest path to completing the forgiveness process includes:

  • Elect the 24-week coverage period
  • Document 100% of the loan proceeds as payroll

Forgiveness Application for Loans of $50,000 or less

Step 1: Complete Form 3508S

  • Click here to download Form 3508S
  • Complete all fields
    • Contact Pioneer if you do not know your PPP loan number and lender loan number
    • Covered Period: This is the date you received the loan through 8 weeks (56 days) or 24 weeks (168 days)
    • Alternative Payroll Covered Period: This is the date of the first payroll after you receive the loan through 8 weeks (56 days) later. This is only if you opt for the 8-week covered period and not the 24-week covered period and your payroll schedule is either weekly or bi-weekly.
  • Initial each of the certifications
  • Sign the form as an Authorized Representative of the Borrower

Step 2: Gather Required Documentation

  • Documenting Payroll Expenses
    • Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
    • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
      • Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
      • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
    • Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.

  • Documenting Non-Payroll Expenses
    • Mortgage Interest Payments
      • Copy of lender's amortization schedule (you will have to request this from your lender)
      • Receipts or cancelled checks showing proof of loan payments made from February 2020 through the covered period, plus the next month's payment
    • Business Rent or Lease Payments
      • Copy of the Lease Agreement(s)
      • Receipts or cancelled checks showing proof of lease payments made from February 2020 through the covered period, plus the next month's payment
    • Business Utility Payments
      • Copy of invoices and/or billing statements from utility provider from February 2020 through the covered period
      • Copy of reciepts, cancelled checks, or account statements showing proof of utility payments made

Step 3: Upload Documents

Use the upload links provided by your Relationship Manager or Branch Manager to upload all necessary supporting documentation

Forgiveness Application for Loans greater than $50,000

Step 1: Complete the Checklist


Step 2: Complete Application Certification to Lender


Step 3: Complete Form 3508EZ

  • Click here to download Form 3508EZ
  • Complete all fields
    • Contact Pioneer if you do not know your PPP loan number and lender loan number
    • Covered Period: This is the date you received the loan through 8 weeks (56 days) or 24 weeks (168 days)
    • Alternative Payroll Covered Period: This is the date of the first payroll after you receive the loan through 8 weeks (56 days) later. This is only if you opt for the 8-week covered period and not the 24-week covered period and your payroll schedule is either weekly or bi-weekly.
  • Complete the calculations, lines 1 through 8
  • Initial each of the certifications
  • Sign the form as an Authorized Representative of the Borrower

Step 4: Gather Required Documentation

  • If you selected Box 1 on the Checklist, provide the following documentation:
    • A copy of your bank statements showing:
      • Deposit of PPP Loan Funds to your account
      • All transactions made on the account during the covered period

  • If you selected Box 2 on the Checklist, provide the following documentation:
    • Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees (please include employee compensation detail by employee)
    • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
      • Payroll tax filings reported, or that will be reported, to the IRS (typically Form 941); and
      • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
    • Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans tha the Borrower included in the foregiveness amount.
    • Payroll report showing the average number of full-time equivalent employees on payroll employed bythe Borrower on January 1, 2020 and at the end of the Covered Period. Include the employee detail showing name, compensation, and hours worked for all periods.

  • If you selected Box 3 on the Checklist, provide the following documentation:
    • Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees (please include employee compensation detail by employee)
    • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
      • Payroll tax filings reported, or that will be reported, to the IRS (typically Form 941); and
      • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
    • Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans tha the Borrower included in the foregiveness amount.

  • Documenting Non-Payroll Expenses
    • Mortgage Interest Payments
      • Copy of lender's amortization schedule (you will have to request this from your lender)
      • Receipts or cancelled checks showing proof of loan payments made from February 2020 through the covered period, plus the next month's payment
    • Business Rent or Lease Payments
      • Copy of the Lease Agreement(s)
      • Receipts or cancelled checks showing proof of lease payments made from February 2020 through the covered period, plus the next month's payment
    • Business Utility Payments
      • Copy of invoices and/or billing statements from utility provider from February 2020 through the covered period
      • Copy of reciepts, cancelled checks, or account statements showing proof of utility payments made


Step 5: Upload Documents

Use the upload links provided by your Relationship Manager or Branch Manager to upload all necessary supporting documentation.

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