PPP Loan Forgiveness

As of June 25, 2021

Washington Trust will begin to send forgiveness application links to 2021 First and Second Draw PPP loan borrowers in August.

Important: For a Second Draw PPP Loan amount of $150,000 or less, the borrower must provide documentation substantiating the reduction in gross receipts. The documentation must be signed and dated, clearly identify both of the reference quarters (if not using annual comparison), must contain the gross receipts amounts for both quarters, and support the amounts provided.

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.