Paycheck Protection Program (PPP) Loan Forgiveness Application

Loan Forgiveness Guidelines

Small businesses receiving loans through the Paycheck Protection Program (PPP) may apply for loan forgiveness for expenditures on payroll costs, payments of interest on covered mortgage obligations, payments on any covered rent obligation, and covered utility payments.

Payroll Costs

To qualify for the full amount of loan forgiveness, at least 60% of the loan proceeds must be used for payroll costs.

Payroll costs include:

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis per employee).
  • Employee benefits, including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits, including insurance premiums; and payment of any retirement benefit.
  • State and local taxes assessed on compensation.

Loan forgiveness may be reduced if:

  • You decrease your full-time employee headcount.
  • You decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.

You have until December 31, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

Interest on Mortgage Obligations

  • Payment of interest on any mortgage obligation, not including prepayment or payment of principal, incurred in the ordinary course of business that: (1) is a liability of the borrower; (2) is a mortgage on real or personal property; and (3) was incurred before February 15, 2020.

Rent Payments

  • Rent(s) obligated under a lease agreement in force before February 15, 2020.

Utility Payments

  • Payment for the service of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020.

For more information on the loan forgiveness process under the PPP, visit the FAQs. Consult the list of required documents to make sure you have the necessary documentation to successfully complete the application.

Note: These guidelines are based on information from the SBA to date and are subject to change without notice. Loan forgiveness is not guaranteed and is not solely determined by Huntington Bank.