SQUARE CAPITAL GUIDE

Applying for PPP loan forgiveness

If you received your PPP loan through Square Capital, this guide will outline how loan forgiveness works, including the steps you’ll need to take and the documents you’ll need to apply.

Since the SBA and Congress can still change forgiveness guidelines, follow our Support Center article for the latest news.

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Your covered period for forgiveness-eligible expenses lasts 24 weeks after you received your loan, or until December 31, 2020—whichever comes first. If you received your PPP loan before June 5, you can choose an 8-week covered period. Either way, you’ll have up to 10 months after your covered period ends to apply for loan forgiveness.

Which expenses can be forgiven?

Eligible expenses include payroll, utilities, rent, and mortgage interest. Your covered period for expenses is 24 weeks after you received your loan, or until December 31, 2020—whichever comes first. For loans before June 5, there's also an 8-week option.

We’re working to make the process easy for anyone who received a PPP loan through Square Capital. You’ll upload your documents, and we’ll help you calculate how much of your loan could be eligible for forgiveness.

What documents will I need?

Make sure to have any documents and receipts showing how you spent your PPP funds on hand and ready to upload. If you use Square Payroll, we’ll already have some documents and information pre-filled in your application.

Employers

If you applied for your PPP loan with a Form 940, 941, 944, or W-2—use these documents:

  • Payroll/Wages: Taxable wage filings such as a Quarterly Form 941

  • Employee compensation: Third-party payroll provider reports

  • Benefits: Third-party payroll provider reports or benefit provider account statements

  • Utilities: Utility account statements verifying payments for February 2020 and each month during your covered period

  • Rent: Monthly landlord (lessor) account statements for February 2020 and each month during your covered period

  • Mortgage interest: Lender account statements for February 2020 and each month during your covered period

Non-employers

If you applied for your PPP loan with a Form 1040 Schedule C, use the following documents:

  • Payroll/Wages: 2019 Form 1040 Schedule C

  • Utilities: Utility account statements verifying payments for February 2020 and each month during your covered period

  • Rent: Monthly landlord (lessor) account statements for February 2020 and each month during your covered period

  • Mortgage interest: Lender account statements for February 2020 and each month during your covered period

If you received an EIDL Advance, the amount of that advance will be deducted from your total forgiveness amount.

What’s the timeline for forgiveness?

After you apply, getting your final decision from the SBA will likely take some time, as thousands of businesses will be applying at once. Here’s a breakdown of the forgiveness schedule:

24 weeks to use the funds. Or by December 31, 2020.

10-month window for you to submit your application.

60 days for Square to verify your application.

90 days for SBA to review and make a final decision.

Timeline and repayment details can vary depending on when your loan was disbursed.

For the most recent updates and SBA guidelines, check our support article.

Square, the Square logo, Square Capital, and others are trademarks of Square, Inc. and/or Square Capital, LLC. Square Capital, LLC is a wholly owned subsidiary of Square, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY. All loans are issued by Square Capital, LLC, a PPP lender licensed by the SBA. The individual authorized to act on behalf of the business must be a U.S. citizen or permanent resident and at least 18 years old. Valid U.S. bank account and Social Security number or Individual Taxpayer Identification Number are required. Eligibility for the Paycheck Protection Program or any other loan product is not guaranteed. All loans, if offered, will be subject to approval and qualification under the program standards. Square Capital, LLC is a licensed servicer and debt collector with the following License Information.