You must complete your application with First Midwest via our online portal only.
All PPP loan borrowers must complete your application with First Midwest via our online portal by logging into Spark with your current login and password. Important: You must use a valid email address.
For certain borrowers, if all loan proceeds have been used prior to 8 weeks following disbursement, please email email@example.com to request the application be sent.
Learn more at the SBA’s PPP loan forgiveness site.
If you received a PPP Loan of $150,000 or less, the application process has been simplified and you can apply online via the 3508S application located on the Spark portal.
Click here to watch a brief instructional video on how to complete the Forgiveness application in Spark.
Learn more about the under $150K application on SBA’s website here.
*If a Forgiveness Application is being submitted for a Second Draw PPP Loan, the Borrower must submit with the 3508S documentation that supports the gross receipts reduction the Borrower certified to on their PPP loan application if the Borrower has not already submitted the documentation to the Lender at the time of their PPP Loan Application. See the FAQ below for more information.
Available to borrowers on the Spark portal that:
Learn more about the EZ application on SBA’s website here.
If you do not meet the criteria for the EZ Application, you must apply via the full forgiveness application located on the Spark portal.
Click here to watch a brief instructional video on how to complete the Forgiveness application in Spark (this also applies to the Over $150K EZ Application).
Learn more about the full application on SBA’s website here.
IMPORTANT INFORMATION ABOUT PPP APPLICATIONS
This summary information is not a substitute for the detailed review and analysis required to complete the forgiveness application process. The SBA continues to issue guidance and clarifications regarding the PPP and loan forgiveness process and we will continue to update you with new developments as they become known.
First Midwest Bank does not provide tax, legal, or accounting advice to our bank clients or borrowers for the SBA PPP. Please consult with your tax, legal and accounting advisors. As the borrower under the program, it's your obligation to understand the SBA’s rules on eligibility and the documentation requirements associated with your loan.
Stages of Forgiveness: A Step-by-Step Process
You will need to provide proof of proper use of funds, within each of the three documentation categories:
Full details on required documentation are available on page 10 of the SBA PPP Loan Forgiveness Application.
PPP Loan Forgiveness is not automatic and must be applied for along with all required supporting documentation. If supporting documentation is not provided, the loan will not be eligible for forgiveness. Borrowers may have some or all the loan forgiven. If not fully forgiven, borrowers will be responsible for repaying any loan amounts not forgiven by the SBA.
The covered period to use the proceeds of your PPP loan for eligible expenses has been expanded to up to 24 weeks., Eligible expenses for forgiveness fall into two categories:
*At least 60% of the PPP loan proceeds must be used towards payroll to be eligible for forgiveness
**Non-payroll covered costs must have been in force prior to 2/15/2020. Up to 40% of the PPP proceeds can be used towards non-payroll.
Each Borrower must maintain the documentation they used in verifying their eligibility under the Program. This can include: Payroll Documentation, Non-Payroll Documentation as well as Other Records relating to the Borrower’s certifications including the Borrower’s gross receipt reduction for a Second Draw PPP Loan.
While these documents may not be required to submit the PPP Loan Forgiveness Application, the Borrower must retain all employment records/payroll documentation in its files for four (4) years and all other documents and records for three (3) years after the date of the loan forgiveness application is submitted to the Lender.
|The following list includes the primary sets of documentation a Borrower can provide to support their certification they have “sustained at least the 25% reduction in gross revenue” as result of the impacts of the COVID-19 Pandemic.
(Only one set of documents is required, however a Borrower may opt to provide more if they feel it is required).
|Quarterly Financial Statements|
|Y/N||Are the Financial Statement/s Audited?||If “NO”, Borrower must sign and date first page of financial statement and initial all other pages.|
|Y/N||Do the Financial Statement/s specify which line items are included in their gross receipts calculation?||If “NO”, the Borrower must explain which line item(s) represent gross revenue receipts.|
|Quarterly or Monthly Bank Statements|
|Y/N||Borrower should mark or provide cover page noting which deposits listed on the bank statement are included in their gross receipts calculation (e.g. payments for purchases of goods and services)?||If “NO”, Borrower must explain how the supporting documents were used to support their calculation of revenue reduction.|
|Y/N||Borrower should mark or provide cover explanation noting which deposits listed on the bank statement have been excluded from their gross receipts calculation (e.g., capital infusions)?||If “NO”, Borrower must explain how the supporting documents were used in their calculation of revenue reduction.|
|Annual IRS Income Tax Filings (required if Borrower used an Annual Reference Period)|
|Y/N||Has the Borrower filed their 2020 Tax Return yet?||If ”NO”, the Borrower must fill out a copy of the TAX Return Forms, compute the relevant gross receipts value, and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.|
Are the IRS transcripts of the 2020 Tax Return provided?
|If “NO”, the SBA has extended through June 30, 2021 the guidance that provides alternate processing procedures when there are IRS delays impacting the tax verification process.*|
Did the Borrower utilize the alternate processing procedures to provide Tax Verification?
|If “NO”, Borrower must provide a certification that the tax information provided is identical to what was submitted to the IRS.|
If the SBA determines you did not use all your funds as authorized by the PPP, you may not be granted forgiveness or only given partial forgiveness.
Loans carry a 1% interest rate. Loans originated prior to the enactment of PPP Flexibility Act of 2020 on June 5 are due for full repayment at minimum in 2 years, while loans originated after this act are due at minimum in 5 years. If you have a 2-year loan, you may convert to a 5-year loan if you and your lender mutually agree to this update. There is no prepayment penalty on PPP loans.
The following must be met for you to qualify for full forgiveness:
***Several safe harbor provisions exist for this requirement. Please talk with your financial consultant or lawyer for more details.
The SBA is now requesting an additional form from PPP borrowers who, including their affiliates, received PPP loans with an original principal amount of $2 million or greater, in order to maximize program integrity. When the SBA reviews your application after applying for Forgiveness, you will receive a Loan Necessity Questionnaire from First Midwest Bank. Once you receive this form, you have 10 business days to complete it and provide all required supporting documentation. We recommend preparing your answers and saving documentation now, so that you can successfully complete this form within the 10-day window. There are two forms, one for non-profit borrowers and one for for-profit borrowers. (Updated 12/8/2020)
A loan forgiveness application must be submitted within 10 months of the completion of the Covered Period. An applicant may select a Covered Period up to 24 weeks after the funded date in order to maximize their potential forgiveness.
If you are an owner of a C Corp, an S Corp, or a partnership, please note that there are additional rules and exceptions. You can find more information on the SBA’s August 11th update on page #4. Click here to access this page from the SBA website.
If a seasonal employer elected to use a 12-week period between May 1, 2019 and September 15, 2019 to calculate the loan amount, the same 12-week period must be used for the forgiveness calculation.
Total cash compensation, which includes compensation, tips, commissions, bonuses and hazard pay, is limited to $100,000 per employee on an annualized basis. However, the gross payroll amount continues to be what is used for the forgiveness calculation, rather than cash compensation.
The Paycheck Protection Flexibility Act of 2020 was signed into law on June 5, dramatically improving several critical forgiveness terms of the PPP. The key improvements:
On February 5, 2021 the SBA published an additional interim final rule which implemented further updates to the PPP as enacted under the Economic Aid Act of December 27, 2020. The interim final rule on Second Draw PPP Loans, and the consolidated interim final rule on PPP loan forgiveness requirements and loan review procedures.
On March 11, 2021 the American Rescue Plan Act of 2021 was enacted.