The following loan forgiveness applications are available to apply through the Regions PPP Portal:

• Simplified Form 3508S
• Standard Form 3508
• Form 3508EZ

A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan if the borrower has used loan proceeds for which the borrower is requesting forgiveness. If a borrower is applying for forgiveness of a second draw PPP loan that is more than $150,000, the borrower must submit the loan forgiveness application for the first draw PPP loan before or simultaneously with the loan forgiveness application for its second draw PPP loan. However, if the borrower does not apply for loan forgiveness within 10 months after the last day of the maximum covered period of 24 weeks, the PPP loan is no longer deferred, and the borrower must begin paying principal and interest.

Eligible borrowers that received a loan of $150,000 or less should use the PPP Loan Forgiveness Application Form 3508S. No supporting documentation is required, at the time of application for loan forgiveness, for first draw borrowers who qualify to apply for forgiveness using Form 3508S. Forms 3508EZ and 3508S require fewer calculations and less documentation for eligible borrowers than the Standard Form 3508. The Regions online application will guide borrowers through completing the required forms. Use the checklist for using SBA Form 3508EZ to determine if you are eligible to use the EZ form.

Borrowers who can document that 100% of their PPP loan amount for which they seek forgiveness was spent on eligible payroll costs do not need to detail or otherwise provide documentation of nonpayroll costs. However, these borrowers have the option to detail and provide documentation of nonpayroll costs if they so choose.

The loan forgiveness "covered period" is the period the borrower has to incur and/or pay payroll and nonpayroll costs to be eligible for forgiveness. The covered period begins on the loan disbursement date and ends on any date beginning on eight weeks and ending 24 weeks after the disbursement date.

The disbursement date is the date the lender disburses the PPP loan. If loan proceeds were received on more than one date, this will be the first date on which the borrower received PPP loan proceeds.

FTE is a unit of measure for PPP forgiveness in which an employee who works on average at least 40 hours per week is equal to 1.0 FTE. Any employees working less than 40 hours per week are calculated at a proportionally lower FTE level. Depending on the size of the loan and the forgiveness application used, this calculation will be used to determine whether the borrower's loan forgiveness amount must be reduced due to a statutory requirement concerning reductions in full-time equivalent employees.

The Regions PPP Portal allows you to apply for forgiveness for multiple loans using the same login credentials. Each PPP loan requires a unique forgiveness application. For PPP loans greater than $150,000, you must submit the first draw forgiveness application before or simultaneously with the second draw forgiveness application.

No. Payroll costs that are qualified wages for the Employee Retention Credit are not eligible for loan forgiveness if the employer elects to claim the credit for those amounts. The borrower cannot receive both forgiveness and a tax credit.

Yes. PPP loans cover payroll costs, including family and sick leave. However, borrowers are not eligible to apply for forgiveness of qualified sick leave for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act or qualified family leave for which a credit is allowed under section 7003 of FFCRA. The borrower cannot receive both forgiveness and a tax credit.

You can find up-to-date information on the rules of the program on the SBA PPP site and the U.S. Treasury page.

If you do not apply for loan forgiveness within 10 months after the last day of the maximum covered period of 24 weeks, your PPP loan is no longer deferred, and you must begin paying principal and interest. Payments will be based on the remaining portion of your 24- or 60-month term at a 1% interest rate. Interest accrues during the deferment period, and the borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven.

Form 3508D pertains to a borrower's disclosure of certain controlling interests. This form has a very limited scope, and if it does not apply to your business, you do not need to complete this form as part of your forgiveness application. This form should only be completed for first draw loans received before December 27, 2020, if a Covered Individual (U.S. government officials including the President, the Vice President, the head of an Executive department as defined in 5 U.S.C. § 101, or a member of Congress) or their spouse has a Controlling Interest (owning, controlling, or holding not less than 20%, by vote or value, of the outstanding amount of any class of equity interest) in a borrower.

• If your PPP loan is $150,000 or less, use Form 3508S
• If your PPP loan is more than $150,000, use the Checklist for Using SBA Form 3508EZ on page 5 of the SBA Form 3508EZ dated January 19, 2021 to determine if you are eligible to use Form 3508EZ
• If you are not eligible to use Forms 3508S or 3508EZ, you must use Form 3508

This is not necessary. Regions has created an online application using the SBA criteria to help you fill out the application and upload your supporting documentation. If you do fill out the forgiveness application form from the SBA's website, you can use it to assist you in applying through the Regions online portal. However, at this time, Regions is unable to process forgiveness applications created by the borrower outside of the online portal.

First Draw borrowers with PPP loans of $150,000 or less who use Form 3508S are not required to submit supporting documentation at the time of their application for loan forgiveness. However, they must retain all employment records/payroll documentation for four years and all other documentation for three years after the date the loan forgiveness application is submitted. All second draw borrowers with PPP loans of $150,000 or less are required to provide documentation sufficient to establish that the borrower experienced a reduction in revenue (unless such documentation was already provided).

For borrowers using 3508EZ or 3508, in addition to your loan documents, you will need documentation of payroll costs verifying the eligible cash compensation and the non-cash benefit payments from the covered period, as well as documentation of nonpayroll costs verifying existence of the obligations/services prior to February 15, 2020, and eligible payments from the covered period. In addition, borrowers using Form 3508 must provide documentation of full-time equivalency (FTE). All supporting documentation must be available in electronic format, so that you can attach it to the online forgiveness application. Borrowers must also maintain but are not required to submit certain additional documentation described in the instructions to Forms 3508EZ and 3508. They must retain all such documentation for six years after the date the loan is forgiven or repaid in full.

You will only be required to provide documentation verifying those costs for which you are seeking forgiveness. For example, if you are only seeking forgiveness of payroll costs, you are not required to provide documentation of nonpayroll costs (though you may elect to do so if you choose).

Common supporting documentation:

Payroll

• 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)
• State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported.
• Payment receipts, canceled 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.

Nonpayroll

• Business mortgage interest payments documentation:
  • A copy of a lender amortization schedule and receipts or cancelled checks verifying eligible payments from the covered period.
  • Lender account statements from February 2020, and the months of the covered period through one month after the end of the covered period verifying interest amounts and eligible payments.
• Business rent or lease payments documentation:
  • A copy of the current lease agreement and receipts or canceled checks verifying eligible payments from the covered period.
  • Lessor account statements from February 2020, and from the covered period through one month after the end of the covered period verifying eligible payments.
• Business utility payments documentation:
  • A copy of invoices from February 2020, and copies of invoices or bills paid during the covered period as well as receipts, canceled checks or account statements verifying those eligible payments.
• NEW: Covered worker protection expenditures documentation:
  • A copy of invoices, orders, or purchase orders paid during the covered period and receipts, cancelled checks, or account statements verifying those eligible payments.
  • Documentation that the expenditures were used by the borrower to comply with applicable COVID-19 guidance during the covered period.
• NEW: Covered property damage costs documentation:
  • A copy of invoices, orders, or purchase orders paid during the covered period and receipts, cancelled checks, or account statements verifying those eligible payments.
  • Documentation that the costs were related to property damage and vandalism or looting due to public disturbances that occurred during 2020, and such costs were not covered by insurance or other compensation.
• NEW: Covered supplied costs documentation
  • A copy of contracts, orders or purchase orders in effect at any time before the covered period (except for perishable goods), copy of invoices, orders, or purchase orders paid during the covered period and receipts, cancelled checks, or account statements verifying those eligible payments.
• NEW: Covered operations expenditures:
  • Copies of invoices, orders or purchase orders paid during the covered period.
  • Copies of receipts, canceled checks or account statements verifying those eligible payments.

Full Time Equivalency (FTE)

• Documentation showing the average number of FTE employees on payroll per week employed by the borrower
  • Between February 15, 2019, and June 30, 2019
  • Between January 1, 2020, and February 29, 2020; or
  • In the case of a seasonal employer, either of the two preceding methods or a consecutive 12-week period between February 15, 2019, and February 15, 2020.

PPP Schedule A Worksheet if not using the EZ application (Form 3508EZ)

Second Draw PPP ONLY, Revenue Reduction

• All PPP borrowers with a second draw loan of $150,000 or less must provide documentation before or at the time of the forgiveness application sufficient to establish that the borrower experienced a reduction in revenue. For more details, refer to guidance published by the SBA on January 19, 2021, titled Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide
• The borrower may submit relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, a copy of the applicant's quarterly income statements or bank statements.

Determine which forgiveness form you will use. If your PPP loan is $150,000 or less, you will use form 3508S. Otherwise, review the Checklist for Using SBA Form 3508EZ to determine whether you must use Form 3508 or may use Form 3508 EZ. Familiarize yourself with the applicable forms, and gather the required documentation specified in the instructions.

• Simplified (Form 3508S) Forgiveness Application Resource Guide
• EZ (Form 3508EZ) Forgiveness Application Resource Guide
• Standard (Form 3508) Forgiveness Application Resource Guide

Yes. There is no prepayment penalty. However, interest accrues between the disbursement of the loan and SBA remittance of the forgiveness amount. The borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven.

The SBA estimates it will take about 15 minutes to three hours to complete the process depending on the form used. However, actual times may vary widely and could be significantly longer than the SBA's estimate. Filling out the PPP Schedule A Worksheet and gathering supporting documentation will be the most time-consuming. The Regions online application portal is user-friendly and provides step-by-step instructions. It also allows you to save your progress should you want to pause the application and resume later.

Your SBA Loan Number is on the table at the top of the U.S. Small Business Administration Note (SBA Form 147) that was part of your PPP loan package.

The Regions Loan Number is the unique identifier for your PPP loan on Regions' loan system and is used when making loan payments and inquiries. The SBA Loan Number is the unique identifier of your loan on SBA's E-Tran system, and is utilized in the PPP forgiveness process.

No. If you are using the 3508EZ or 3508 application and are able to upload documentation with your application for forgiveness verifying that 100% of the PPP loan amount for which you seek forgiveness was spent on eligible payroll costs, it is not necessary to detail or otherwise provide documentation of nonpayroll costs. However, you have the option to detail and provide documentation of nonpayroll costs if you so choose.

Payroll costs include gross compensation to employees (whose principal place of residence is the United States) in the form of:

• Salary, wages, commissions, or similar compensation
• Cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips
• Payment for vacation, parental, family, medical or sick leave
• Allowance for separation or dismissal
• Payment for the provision of employee benefits consisting of group healthcare coverage (including insurance premiums) and retirement
• Payment of state and local taxes assessed on compensation of employees
• For an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation

The following is expressly excluded from the definition of payroll costs:

• Any compensation of an employee whose principal place of residence is outside of the United States
• Compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary
• Federal employment taxes imposed or withheld during the applicable period, including the employee's and employer's share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees
• Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Pub. L. 116–127)
• Qualified for the Employee Retention Credit if the employer elects to claim the credit for those amounts

• Interest payments on any business mortgage obligation on real or personal property incurred before February 15, 2020 (but not any prepayment or payment of principal)
• Rent payments on business rent obligations on real or personal property under a lease agreement in force before February 15, 2020
• Business utility payments for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020
• NEW: Covered worker protection modification expenditures, including but not limited to personal protective equipment
• NEW: Covered property damage costs related to property damage and vandalism or looting due to public disturbances in 2020 that were not covered by insurance or other compensation
• NEW: Covered supplied costs, which refer to expenditures to suppliers of goods that are essential at the time of purchase to your current operations and made pursuant to an eligible contract order or purchase order
• NEW: Covered operations expenditures, which refer to:
  • payments for any business software or cloud computing service that facilitates business operations;
  • product or service delivery; the processing, payment, or tracking of payroll expenses;
  • human resources;
  • sales and billing functions; or
  • accounting or tracking of supplies, inventory, records, and expenses.

Yes, if the costs are paid on or before the next regular payroll date (for payroll costs) or billing date (for nonpayroll costs) after the covered period.

Yes.

Business utility payments are payments made for the distribution of electricity, gas, water, transportation, telephone or internet access.

Use the initial date of disbursement as the start date for your covered period.

You can reference the revised SBA Form 3508 Instructions published within the application.

If you applied online using the Regions portal, you may log in to check the status of your forgiveness application. Regions will email you periodically throughout the process, as well. Regions, via DocuSign, will email you a final copy of your forgiveness application to execute via electronic signature.

Regions has 60 days to review your application and submit its decision regarding loan forgiveness to the SBA. Regions will email you at the end of the review process, before submitting to the SBA. The SBA will, subject to any review, remit the appropriate forgiveness amount to Regions, plus any interest accrued through the date of payment, no later than 90 days after Regions submits the application to the SBA. It could take up to 150 days (approximately five months) from the date you submit your application to finish this process. Complete and accurate applications will move through the process faster, so please take your time filling out the forgiveness application.

Regions must notify the borrower in writing that we have issued a decision to the SBA denying the loan forgiveness application in full and provide SBA with a copy of the notice. Within 30 days of notice from Regions, the borrower may notify the lender that it is requesting that the SBA review the lender's decision. Regions must also notify the borrower of a final SBA loan review decision, including an SBA loan review decision on forgiveness (whether approving or denying forgiveness in full or part), as well as remittance by SBA to Regions of the loan forgiveness amount, whether partial or full.

No, PPP borrowers who have submitted applications for forgiveness within 10 months after the last day of the covered period will not have any principal or interest payments due before the date on which SBA remits the loan forgiveness amount on your loan to Regions (or notifies Regions that no loan forgiveness is allowed). If this occurs, Regions will notify the borrower of the date the first payment is due.

Yes. The amount of loan forgiveness can be as much as the full principal amount of the loan and any accrued interest only if the loan proceeds were used for forgivable purposes and employee and compensation levels were maintained. The CARES Act, as amended by the PPP Flexibility Act and maintained by the Economic Aid Act, specifically requires certain reductions in a borrower's loan forgiveness amount. Several factors which might reduce your loan forgiveness include:

• Use of loan proceeds for unforgivable purposes
• Nonpayroll costs which exceed 40% of the total forgiveness amount
• Reductions in hourly wages or salaries of employees by more than 25%
• Reductions in the number of employees or the hours your employees worked

There are Safe Harbor exceptions which may still allow you to receive full forgiveness even if you reduced employees, hours worked or wages. The SBA instructions and the Regions online application will help guide you through the Safe Harbor calculations. Additional information about reasons for reductions in loan forgiveness amount can be found in the CARES Act, PPP Flexibility Act, Economic Aid Act and the SBA's various interim final rules.

Any PPP loan balance remaining will be amortized over the term of your loan at 1% interest as outlined in your Note. PPP loans with SBA authorization dated on or after June 5, 2020, have a term of 60 months (five years). PPP loans authorized by SBA before June 5, 2020, have a term of 24 months (two years), but you have the option of requesting an extension of the term to 60 months (5 years) during the forgiveness application process. Payments of principal, interest and fees are deferred until payment is due per the terms of your Note after:

1. the SBA remits the loan forgiveness amount to Regions; or
2. 10 months after the end of the maximum covered period of 24 weeks, if the borrower has not applied for forgiveness by that time, unless SBA determines that the loan is not eligible for forgiveness (in whole or in part).