How to Fill Out Your PPP Forgiveness Application Form

By Owen Yin on May 27, 2020

Note: If you’re self-employed, your instructions are a bit different. Here’s how to fill out PPP Forgiveness Application form when you’re self-employed.

On May 18, the SBA released the official form you’ll need to fill out in order to apply for forgiveness on your PPP loan, also known as SBA Form 3508. But it’s not the simplest form to fill out.

In this guide, we explain each section and walk you through exactly how to fill out this form to get your loan forgiven.

Download the Forgiveness Application (PDF)

PPP Forgiveness Form

Here’s how to tackle this form:

  • Complete basic company information on the main Loan Forgiveness Calculation form
  • Complete Schedule A Worksheet to see if you meet the headcount and pay requirements
  • Complete Schedule A to find your payroll and compensation costs
  • Complete the rest of the Loan Forgiveness Calculation Form to determine your total eligible costs and our forgiveness amount

Pages 1-2

These pages tell you how to interpret aspects of the application form—nothing to fill out here. We’ll walk you through the relevant details of the form in this guide.

Page 3: PPP Loan Forgiveness Calculation Form

Business Legal Name (“Borrower”) DBA or Tradename, if applicable

Enter the same business name used on your PPP application, which should be identical to the name you use on your tax returns.

Business Address/Business TIN (EIN, SSN)/Business Phone/Primary Contact/E-mail Address

Use the same information as on your PPP application unless the information has changed.

SBA PPP Loan Number

This is your E-tran number that the SBA generated for you. Each business gets one E-tran number per PPP loan. If you have multiple businesses and multiple PPP loans, you will have more than one E-tran number. If you don’t know where to find this number, speak to your lender—they’ll have it on file.

Lender PPP Loan Number

The number the lender has assigned to your loan in their systems. You can find this on your signed loan docs. If you can’t find it, your lender will be able to provide it for you.

PPP Loan Amount

The full loan amount you received. You can confirm this amount in your bank records, PPP loan agreement, or in a confirmation email. Your lender should not have charged fees or otherwise taken any amount away.

PPP Loan Disbursement Date

The day the funds arrived in your bank account. You should be able to see this in your bank records or in your online banking portal. If your funds were sent in stages, enter the first date.

Employees at Time of Loan Application/Employees at Time of Forgiveness Application

Enter the number of actual employees, not Full-Time Equivalents (FTE).

EIDL Advance Amount

If you applied for and received an EIDL advance, enter this amount. Generally payments ranged from $1,000 to $10,000, in increments of $1,000.

EIDL Application Number

Application # for Economic Injury Disaster Loan if you applied (regardless of approval or not).

Payroll Schedule

Select the frequency of payroll being paid to employees. If this has changed since 2019, select the frequency you were using during the 8-week forgiveness period.

Covered Period

Calculate the period starting from your disbursement date to eight weeks (56 days) after.

Alternative Payroll Covered Period

This applies to you if you run payroll on a biweekly or more frequent basis.

You can start your covered period for payroll on the day of your first pay period.

If you decide to use this period, you must use it for all parts of the application that call for it (no picking and choosing).

If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million

Check if applicable to you.

Forgiveness Amount Calculation

You can skip this page for now. You’ll need to complete Schedule A first to get the figures you need, which we’ll find by starting on the Schedule A Worksheet first.

Now that that’s done, we can move on to page 9.

Page 9: PPP Schedule A Worksheet

Self-employed individuals without payroll can ignore the worksheet, and proceed to Schedule A.

Table 1

List every single employee on your payroll during the 8-week Covered Period (or the Alternative Payroll Covered Period). Do not include anyone who does not live in the US, any independent contractors, yourself, or your partners.

Also do not include anyone who received an annualized pay rate of more than $100,000. Those employees are to be listed on Table 2.

Employee’s Name

Full name

Employee Identifier

Last 4 digits of SSN

Cash Compensation

The employee’s compensation over the 8 weeks, which includes:

  • gross salary
  • gross wages
  • gross tips
  • gross commissions
  • paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act)
  • allowances for dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period

Average FTE

Calculate the average number of hours paid per week, divide by 40, and round to the nearest tenth. Maximum value of 1.0. For simplicity, you can choose to use 1.0 for anyone who works 40 hours or more, and 0.5 for anyone else.

Further reading: How to Calculate FTE for the PPP

Salary / Hourly Wage Reduction

This is where you calculate if you’ve met the forgiveness requirements for maintaining pay.

For each employee, complete the following steps:

Step 1: Determine if pay was reduced more than 25%

Compare the employee’s pay during the covered period (or alternative payroll period) to the pay between January 1 to March 31. If pay decreased by less than 25%, enter 0. Otherwise, proceed to the next step

Step 2: Determine if the Salary/Hourly Wage Reduction Safe Harbor is met

  • The employee meets the Safe Harbor requirements if these two conditions apply:

    • The average annual salary or hourly wage on June 30 is equal to or greater than the average annual salary or hourly wage on February 15

    • The average annual salary or hourly wage between February 15 and April 26 was lower than it was on February 15

If those conditions apply, the employee has met the Safe Harbor requirements. Enter 0. Otherwise, proceed to the next step.

Step 3: Determine the Salary/Hourly Wage Reduction

  • Determine the difference in salary/wage by subtracting the pay the employee’s pay during the covered period (or alternative payroll period) from 75% of the pay between January 1 to March 31

  • For hourly workers:

    • Multiply the calculated difference by the average number of hours worked per week between January 1 and March 31. Multiply by 8 to get the full 8-week equivalent. Enter this amount.
  • For salaried employees:

    • Enter the 8-week equivalent of the difference in salary by multiplying by 8/52

FTE Reduction Exceptions

If you had any employees you could not hire back, they can be included here. They can be included if the position was not filled by a new employee and they meet one of the following conditions:

  • The employee rejected your good-faith, written offer to rehire them at the same pay rate/hours as before

  • They were were fired for cause

  • They voluntarily resigned

  • They voluntarily requested and received a reduction of their hours

Table 2

Follow the same process as Table 1, but only considering employees who were paid an annualized rate of more than $100,000 for any pay period in 2019.

FTE Reduction Safe Harbor

This is where you calculate if you’ve met the forgiveness requirements for maintaining pay.

Calculate the following FTEs. We’ll do the required calculations later on.

  • Total average FTE between February 15 and April 26. Record on Step 1

  • Total FTE in your pay period that includes February 15. Record on Step 2

  • Total FTE on June 30. Record on Step 4

Further reading: How to Calculate FTE for the PPP

Great! Now we can proceed to Schedule A on page 6.

Page 6: Schedule A

Self-employed individuals without payroll can skip lines 1 through 8.

Line 1

From the worksheet, Box 1.

Line 2

From the worksheet, Box 2.

Line 3

From the worksheet, Box 3.

If all your employees were paid at least 75% of their original pay (between January 1 and March 31), check the box and enter 0.

Line 4

From the worksheet, Box 4.

Line 5

From the worksheet, Box 5.

Lines 6 to 8

Enter the employer-paid expenses for employee health insurance, retirement plans, and state and local taxes on payroll.

Line 9

Enter the compensation paid to yourself and your partner(s). For self-employed individuals, this is where you can enter your owner compensation replacement. Partnerships (or in general, if any other individuals were compensated as an owner), include a separate table that lists how the compensation was paid out (names and amounts).

Line 10

Sum lines 1, 4, 6, 7, 8, and 9.

Full-Time Equivalency (FTE) Reduction Calculation

If there was no reduction in FTE between Jan 1 and the end of the covered period, check the box, skip lines 11 and 12, and enter 1.0 on line 13.

Line 11

Average FTE for one of the following periods

  • February 15, 2019 to June 30, 2019

  • January 1, 2020 to February 29, 2020

Seasonal employers can use either period, or any consecutive twelve-week period between May 1, 2019 and September 15, 2019.

Line 12

From the worksheet, the sum of Box 2 and 5.

Line 13

Refer back to the FTE Reduction Safe Harbor section on the Schedule A Worksheet.

If Step 2 is less than Step 1, divide line 12 by line 11 and enter the result.

Otherwise, if Step 4 is greater than Step 2, enter 1.0.

Otherwise, divide line 12 by line 11 and enter the result.

Congratulations, you’ve completed Schedule A! Return back to page 3 (instructions below).

Finishing Page 3: PPP Loan Forgiveness Calculation Form

Line 1: Payroll Costs

From Schedule A, line 10.

Line 2: Business Mortgage Interest Payments

Enter the sum of interest payments on any business mortgages that were in effect before February 15, 2020. Prepayments are not allowed.

Line 3: Business Rent or Lease Payments

Enter the sum of business rent or lease payments, where the rent/lease agreement was in effect before February 15, 2020.

Line 4: Business Utility Payments

Enter the sum of business utility payments, where the utility agreement was in effect before February 15 2020.

Line 5: Total Salary/Hourly Wage Reduction

From Schedule A, line 3.

Line 6: Add the amounts on lines 1, 2, 3, and 4, then subtract the amount entered in line 5

This is the preliminary amount of eligible forgivable expenses, accounting for any reduction due to not meeting the 75% pay requirement, but not yet accounting for the FTE requirement.

Line 7: FTE Reduction Quotient

From Schedule A, line 13.

Line 8: Modified Total

Multiply line 6 by line 7.

This is the final amount of eligible forgivable expenses, accounting for any reductions due to not meeting the FTE or pay requirement.

Line 9: PPP Loan Amount

The same value you listed previously.

Line 10: Payroll Cost 75% Requirement

Divide line 1 by 0.75 to determine the maximum forgivable amount possible.

Line 11: Forgiveness Amount

Enter the smallest of lines 8, 9, and 10.


Congratulations, you’ve completed all the required calculations! Make the required representations and certifications and sign.

More PPP resources

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

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