PPP Loan Forgiveness

As of August 19, 2021

On August 18, 2021, Washington Trust sent an email with a secure link to our online PPP forgiveness portal to 2021 First and Second Draw PPP loan borrowers. Please check both your email Inbox and “Junk” folder for this important email. The subject line is “ACTION REQUIRED: Your SBA PPP Forgiveness Application is Now Available.”

To ensure our customers receive the most efficient and consistent service, Washington Trust will continue to use our own secure online PPP Forgiveness portal and will not leverage the SBA Portal. If you receive a communication from the SBA, please disregard it.

The SBA released the following information on changes to the PPP Forgiveness process:

The SBA recently announced the launch of a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less to apply for forgiveness directly through the SBA with review and approval still required by the lender. This is an optional service offered by the SBA and requires Lenders to Opt-In. Washington Trust will continue to use our own secure online PPP Forgiveness portal and will not leverage the SBA Portal

The SBA also introduced an alternative process to satisfy the requirement where borrowers of Second Draw PPP loan of $150,000 and under must provide documentation to demonstrate the reduction in revenue of not less than 25% during one quarter of 2020, compared to the same quarter in 2019.

Lenders may now rely on a SBA provided COVID Revenue Reduction Score (score) which is based on a variety of inputs including industry, geography, and business size.

  • If the score meets or exceeds the value required, the borrower will not be required to provide additional documentation.
  • If the score does not meet the required value, the borrower will need to provide documentation to demonstrate a reduction.

If you have any questions, please contact us at pppforgiveness@washtrust.com.

Frequently Asked Questions About Loan Forgiveness

When can I apply for forgiveness?

Washington Trust will send you an email with a secure link to our online PPP forgiveness portal. Until you receive the email and link from Washington Trust, we recommend you do not complete the PDF application on the SBA's website, nor should you respond to any other requests to apply for forgiveness, as they could be fraudulent. As your PPP lender, Washington Trust is the only one that can process your forgiveness application.

You have 10 months from the last day of your covered period to apply.

When do I have to make a PPP loan payment?

Your PPP loan payment will not be due until after you apply for Forgiveness. Once you apply for Forgiveness and your application is accepted by the SBA, we will inform you when the SBA renders a decision. If all, or a portion of the loan is not forgiven, we will inform you of when your first PPP loan payment is due.

If you don’t apply for loan forgiveness within 10 months after the last day of the covered period, then your PPP loan would no longer be considered “deferred” and you would be required to begin paying principal and interest on the PPP loan. We value our relationship with you and want to ensure that the PPP forgiveness process is as easy and convenient as possible.

How will the forgiveness application process work?

Our email link will take you to a secure online portal that will walk you through the process and make it clear what documentation is required.

  • After you have submitted your application via this portal, we will work with you to ensure it is complete.
  • Once your application is complete, we will finalize our review and transmit the application to the SBA.

Please note that SBA rules allow us 60 days, from the receipt of a completed application, to transmit it to the SBA. The SBA then has 90 days to complete its processing. While these are the formal “not to exceed” timelines, we will seek to handle applications more expeditiously, as will the SBA. However, this is a wholly unique process so it is best to assume it will take some time to navigate through it.

What documents do I need to prepare for the forgiveness application?

Below are links to the required documents needed to apply for forgiveness. Documents that are required to be submitted with your application must be uploaded to the forgiveness application portal before you can submit your application. There are documents that are required for applying, AND a list of documents that should be retained after your application has been submitted.

The SBA set the proportion of PPP funding that must be used on payroll cost to qualify for full forgiveness at 60%. This means to qualify for full loan forgiveness, you must use at least 60% of your loan funds for eligible payroll costs. You can use up to 40% of your loan funds for eligible non–payroll costs. To prepare for loan forgiveness, it’s important to track and retain all documentation to support payments made with your PPP loan funds.