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Paycheck Protection Program Loan Forgiveness

Before You Apply:

  • If you are ready to complete a Paycheck Protection Program Loan Forgiveness application, please use the Apply Now button to begin.
  • Be sure to read and understand all information on this page to make sure you are submitting a complete application.
  • You must submit an online application using the Apply Now button and completing our web forms. PDF forgiveness applications will not be accepted.

​​PPP step process

PPP Loan Forgiveness Summary

  • PPP loans may be partially or completely forgiven if you meet certain Small Business Administration conditions.
    • In general, First Draw and Second Draw PPP loans made to eligible borrowers qualify for full forgiveness is during the 8- to 24-week covered period following disbursement:
      • Employee and compensation levels are maintained
      • The loan proceeds are spent on payroll costs and other eligible expenses; and
      • At least 60 percent of the proceeds are spent on payroll costs
  • If you received your PPP loan through Royal, you will need to apply for forgiveness with Royal.
  • Royal will follow SBA guidance available at the time of submission to determine the forgivable amount.

Preparing To Apply?

Please follow the steps below to help prepare for your online forgiveness application with Royal Credit Union.

Step 1: Choose the forgiveness form that applies to your business.

  • There are three versions of the PPP Loan Forgiveness Applications and Instructions. We've included basic info about each form below, along with links to the forms and instructions for your reference. For more details about who can use which form, see our guide to choosing a PPP forgiveness form.
  • "S" Form: The "S" form is the simplest forgiveness form with the fewest calculations and least amount of documentation. Almost anyone with a total PPP loan amount of $150,000 or less can use the "S" form.
    • Form 3508S & Instructions 
    • (Note: PDF forms are provided for reference only. Royal is only accepting applications via our electronic application accessed using the Apply Now button.)
  • "EZ" Form: If you don't qualify to use the "S" form, you may be able to use the "EZ" form, which is another simplified form with fewer calculations than the "full" form.
    • Form 3508EZ & Instructions 
    • (Note: PDF forms are provided for reference only. Royal is only accepting applications via our electronic application accessed using the Apply Now button.)
  • "Full" Form: If you don't qualify to use the "S" or "EZ" forms, you'll need to use the "full" form. This form requires more calculations and documentation, but it can be used for all PPP situations.
    • Form 3508 & Instructions 
    • (Note: PDF forms are provided for reference only. Royal is only accepting applications via our electronic application accessed using the Apply Now button.)

Step 2: Decide the best time to apply, determine your covered period, and gather required documents.

  • Your business should carefully choose when to apply for forgiveness. Selecting the best timing for your business could help maximize the amount of any forgiveness.
  • Your loan forgiveness application will be subject to the rules in effect at the time you submit your application.
  • If needed, please consult with your accountant or financial advisor to determine if you should apply for forgiveness or wait.
  • The Covered Period begins on the date your loan originated and ends on the date of your choosing that is between 8 and 24 weeks after origination. Choosing an appropriate Covered Period will allow ample time to use PPP loan funds for eligible costs. It may also reduce the amount of documentation that you need to gather and submit. For example, if you have enough payroll costs to cover the full amount of loan forgiveness, you wouldn't need to provide non-payroll documentation.
  • Your accountant or financial advisor may be a valuable resource in choosing the best Covered Period for your business.
  • Review the instructions for the Form you plan to use to determine what documentation you will need to submit.
    • Documentation will need to be submitted for EACH item in the Payroll and Non-Payroll categories for ONLY the items that you are requesting forgiveness for.
    • If you choose the full form 3508, FTE documentation is also required. 
  • For more details about what documentation is required, see our PPP Loan Forgiveness Documentation Requirements page.

Step 3: Complete a "draft" of the Forgiveness Application.

  • Download a fillable copy of the Form you plan to use and complete it as a "draft" to prepare to transfer your information to Royal's online forgiveness forms.
    • Note: Royal is not accepting PDF forms. You must complete our online forms using the Apply Now button.
  • This will help maximize your loan forgiveness amount and help ensure timely review by Royal and the SBA.
  • Royal Credit Union is not able to complete or prepare your loan forgiveness application.
  • Royal will accept applications only through our online process accessed from the Apply Now button.

Step 4: Do you have questions about the PPP loan forgiveness application process?

Ready To Apply?

What To Expect During The Forgiveness Process

Here is an overview of what to expect during our PPP loan forgiveness process. We will provide updates throughout the process by email.

  1. If you have a PPP loan with Royal Credit Union, you will receive an email notification that our online forgiveness application is available.
  2. You will request access to Royal’s forgiveness application using the Apply Now link on this page.
  3. We will verify your information to confirm that you are eligible to begin a forgiveness application with Royal.
  4. Once your eligibility is confirmed, we will email you links to our online forgiveness forms.
  5. You will fill in the required information and upload all necessary documents to complete our online application.
  6. We review your application and contact you if any revisions need to be made or any documents are missing. This process may take up to 60 days after we receive your completed application, although we are doing everything we can to process applications as efficiently and accurately as possible.
  7. Once your application is complete, we will submit it to the SBA. The SBA may take up to 90 days to review your application.
  8. Once the SBA communicates their decision for your application to Royal, we will contact you within 5 business days with next steps depending on if your loan was fully forgiven, partially forgiven, or denied.

Paycheck Protection Program Loan Forgiveness FAQs

Carefully consider if taking longer to accumulate eligible forgiveness expenses would increase the portion of your loan that is forgivable. You can accumulate eligible expenses over a full 24-week Covered Period. You also have 10 months after your 24-week covered period before payments begin, as long as you have not yet applied for forgiveness. Remember that you can apply for forgiveness at any time. You can apply for forgiveness during repayment or any time before maturity.

If needed, please consult with your accountant or financial advisor to determine if you should apply for forgiveness or wait. Your accountant or financial advisor may be a valuable resource in choosing the best Covered Period for your business.

For best results with Royal Credit Union's online PPP Loan Forgiveness application forms, we recommend using one of the following supported browsers:

  • Microsoft Internet Explorer 11
  • Microsoft Edge (EdgeHTML 16 or newer)
  • Google Chrome 64 or newer
  • Mozilla Firefox 59 or newer

All documents that need to be uploaded with your online application must be in .pdf, .jpg, or .png file format and no larger than 3,000 KB each.

If you have trouble uploading documents using an older browser, or an unsupported browser, you may need to switch to one of the supported browser versions listed above.

  • The Covered Period begins on the date the loan was originally disbursed.
  • It ends on a date selected by the Borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement.
  • For example, if the Borrower received their PPP loan proceeds on Monday, April 20, 2020, the first day of the Covered Period is Monday, April 20, 2020 and the final day of the Covered Period is any date selected by the Borrower between Sunday, June 14, 2020 and Sunday, October 4, 2020.

Please keep in mind that you have ample time to apply for loan forgiveness. If you don’t apply for forgiveness within 10 months after the last day of your covered period, you loan payments will begin. For example, if your covered period ends on October 30, 2020, you have until August 30, 2021 to apply for forgiveness before loan payments begin. If needed, please consult with your accountant or financial advisor to determine if you should apply for forgiveness or wait. Your accountant or financial advisor may also be a valuable resource in choosing the best Covered Period for your business.

You will receive an email from Royal when our online Loan Forgiveness Application is available for you to apply. Due to the volume of PPP loans that Royal processed, we will be sending email invitations out to borrowers based on loan funding dates.

You can also apply from this page, using the Apply Now button above.

No, Royal will not accept paper or e-mailed applications. Borrowers must submit their application through our easy-to-use online application process.

Royal has 60 days from the receipt of a completed forgiveness application to review and submit to the SBA. The SBA has 90 days from the receipt of that application to review and confirm the forgiveness amount.

For any balance that does not qualify for forgiveness, you will need to start making principal and interest payments based on the loan terms disclosed in your original loan note or note modification with Royal.

Loan Forgiveness is no longer impacted by an EIDL Advance. The previous requirement to deduct EIDL Advance amounts from PPP loan forgiveness amounts has been removed.

Note: An EIDL Advance is not the same as the Economic Injury Disaster Loan.  An Economic Injury Disaster Advance was a direct payment of $1,000-$10,000 provided by the SBA based upon the number of FTE’s.  The business would have been paid $1,000 per FTE, at a max of 10.  

For self-employed and independent contractors, the maximum owner compensation allowed for loan forgiveness is $20,833 for a 24-week covered period or $15,385 for an 8-week covered period (if elected). 

The compensation of self-employed Schedule C (or Schedule F) individuals, including sole proprietors, self-employed individuals, and independent contractors, that is eligible for loan forgiveness is limited to 2.5/12 of 2019 net profit as reported on IRS Form 1040 Schedule C line 31 (or 2.5/12 of 2019 net farm profit, as reported on IRS Form 1040 Schedule F line 34) (or for new businesses, the estimated 2020 Schedule C (or Schedule F) referenced in question 10 of “Paycheck Protection Program: How to Calculate Maximum Loan Amounts – By Business Type”4 ). Separate payments for health insurance, retirement, or state or local taxes are NOT eligible for additional loan forgiveness; health insurance and retirement expenses are paid out of their net self-employment income. If the borrower did not submit its 2019 IRS Form 1040 Schedule C (or F) to the Lender when the borrower initially applied for the loan, it must be included with the borrower’s forgiveness application.

The amount of compensation of owners who work at their business that is eligible for forgiveness depends on the business type and whether the borrower is using an eight-week or 24-week Covered Period. In addition to the specific caps described below, the amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at $20,833 per individual in total across all businesses in which he or she has an ownership stake. For borrowers that received a PPP loan before June 5, 2020 and elect to use an eight-week Covered Period, this cap is $15,385. If their total compensation across businesses that receive a PPP loan exceeds the cap, owners can choose how to allocate the capped amount across different businesses. The examples below are for a borrower using a 24-week Covered Period.


C Corporations: The employee cash compensation of a C-corporation owner-employee, defined as an owner who is also an employee (including where the owner is the only employee), is eligible for loan forgiveness up to the amount of 2.5/12 of his or her 2019 employee cash compensation, with cash compensation defined as it is for all other employees. Borrowers are also eligible for loan forgiveness for payments for employer state and local taxes paid by the borrowers and assessed on their compensation, for the amount paid by the borrower for employer contributions for their employee health insurance, and for employer retirement contributions to their employee retirement plans capped at the amount of 2.5/12 of the 2019 employer retirement contribution. Payments other than for cash compensation should be included on lines 6-8 of PPP Schedule A of the loan forgiveness application (SBA Form 3508 or lender equivalent), for borrowers using that form, and do not count toward the $20,833 cap per individual.

S Corporations: The employee cash compensation of an S-corporation owner-employee, defined as an owner who is also an employee, is eligible for loan forgiveness up to the amount of 2.5/12 of their 2019 employee cash compensation, with cash compensation defined as it is for all other employees. Borrowers are also eligible for loan forgiveness for payments for employer state and local taxes paid by the borrowers and assessed on their compensation, and for employer retirement contributions to their employee retirement plans capped at the amount of 2.5/12 of their 2019 employer retirement contribution. Employer contributions for health insurance are not eligible for additional forgiveness for S-corporation employees with at least a 2% stake in the business, including for employees who are family members of an at least 2% owner under the family attribution rules of 26 U.S.C. 318, because those contributions are included in cash compensation. The eligible non-cash compensation payments should be included on lines 7 and 8 of PPP Schedule A of the Loan Forgiveness Application (SBA Form 3508), for borrowers using that form, and do not count toward the $20,833 cap per individual.

Self-employed Schedule C (or Schedule F) filers: The compensation of self-employed Schedule C (or Schedule F) individuals, including sole proprietors, self-employed individuals, and independent contractors, that is eligible for loan forgiveness is limited to 2.5/12 of 2019 net profit as reported on IRS Form 1040 Schedule C line 31 (or 2.5/12 of 2019 net farm profit, as reported on IRS Form 1040 Schedule F line 34) (or for new businesses, the estimated 2020 Schedule C (or Schedule F) referenced in question 10 of “Paycheck Protection Program: How to Calculate Maximum Loan Amounts – By Business Type”4). Separate payments for health insurance, retirement, or state or local taxes are not eligible for additional loan forgiveness; health insurance and retirement expenses are paid out of their net self-employment income. If the borrower did not submit its 2019 IRS Form 1040 Schedule C (or F) to the Lender when the borrower initially applied for the loan, it must be included with the borrower’s forgiveness application.

General Partners: The compensation of general partners that is eligible for loan forgiveness is limited to 2.5/12 of their 2019 net earnings from self-employment that is subject to self-employment tax, which is computed from 2019 IRS Form 1065 Schedule K-1 box 14a (reduced by box 12 section 179 expense deduction, unreimbursed partnership expenses deducted on their IRS Form 1040 Schedule SE, and depletion claimed on oil and gas properties) multiplied by 0.9235.5 Compensation is only eligible for loan forgiveness if the payments to partners are made during the Covered Period or Alternative Payroll Covered Period. Separate payments for health insurance, retirement, or state or local taxes are not eligible for additional loan forgiveness. If the partnership did not submit its 2019 IRS Form 1065 K-1s when initially applying for the loan, it must be included with the partnership’s forgiveness application.

LLC owners: LLC owners must follow the instructions that apply to how their business was organized for tax filing purposes for tax year 2019, or if a new business, the expected tax filing situation for 2020.

Disclosures: