PPP Loan Forgiveness

 CPA Jay Bares with his family outdoors

Management’s ability to react quickly at the outset of the coronavirus pandemic and respond to the needs of local businesses with the SBA’s PPP loan program has served me and my clients well.  Craig and his team’s responsiveness to PPP loan forgiveness, just like the approval process before it, has allowed me to focus my energy where it needs to be: serving my client’s needs. ~ CPA Jay Barnes, Smith & Barnes


Small Business Administration Paycheck Protection Program Loan Forgiveness Guidance

The Paycheck Protection Program (PPP) was part of The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed into law on March 27, 2020.  The act introduced a funding and loan program with the goal of preventing job loss and small business failure due to losses associated with the COVID-19 pandemic.  SBA PPP loan forgiveness is the process by which the SBA will forgive either the balance or a portion of the loan based on how funds were used and other qualifying factors.


Through the CARES Act’s Paycheck Protection Loan Program, Hocking Valley Bank deployed over $12 million to 162 local businesses and entrepreneurs, ensuring that more than 1,500 local employees continued to receive paychecks. We are very proud to have played a role in deploying much-needed capital to our community and we know that the next step in this process is equally important.


The Forgiveness Process

We have taken the time to learn all that we can to help ease the burden on business owners and managers to help streamline the loan forgiveness process. 


If your loan is $50,000 or less, the SBA has streamlined the forgiveness application. Form 3508S includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Instructions for Form 3508S are included here.


Most borrowers will be able to apply for forgiveness using SBA Form 3508EZ.  To see if your business is qualified to use this form, please see the Checklist on Page 1 of the PPP Loan Forgiveness Application Form Instructions for Borrowers.  After determining this is the correct form, you may access PPP Loan Forgiveness Application Form 3508EZ here


If your business is unable to meet one of the qualifications described in the Form 3508EZ checklist and you cannot use SBA Form 3508EZ, you can instead apply for PPP loan forgiveness using SBA Form 3058.  Instructions for this form are included here  with PPP Loan Forgiveness Application Form 3508 available for your use here.


Please note that, yes!, A borrower’s accountant or CPA can complete either forgiveness application on the borrower’s behalf.  We will also be happy to assist you with the application if these resources are not available to you.


What Happens Next?

After completing the appropriate forgiveness application form, the application and all supporting documentation outlined in the costs eligible for forgiveness (eligible payroll costs, evidence of covered mortgage or rent obligations, and covered utility payments) is submitted to Hocking Valley Bank for review by one of our loan experts.  The form will be reviewed for completion and accuracy.  We may contact you to request additional supporting documentation or ask for clarification on information you have provided.  Once we have determined that the application is complete, we will submit the form to the SBA on your behalf. 


Please note that while Hocking Valley Bank has 60 days to submit a forgiveness application after it has been received from a borrower, the SBA has an additional 90 days to make a forgiveness determination.


We know that you may have questions as you make your way through this process and are here to help.  Please contact our Loan Department at 740-592-4441 or 1-888-482-5854 during business hours.  You may also email us at ppp@hvb1.com if you prefer.