Paycheck Protection Program Loan Forgiveness Information

The United States Congress passed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Act) which was signed into law on December 27, 2020. This legislation includes several important changes to the Paycheck Protection Program (PPP) and Loan Forgiveness.


We appreciate our business owners and understand their impact in our communities, and it is our goal to assist you in applying to have your Paycheck Protection Program loan forgiven. Nusenda will temporarily stop accepting new Forgiveness Applications as we await further guidance on this legislation. Remember you have up to 10 months after the end of your covered period to submit your Loan Forgiveness Application. All loan payments will be deferred during this timeframe and the SBA will pay all accrued interest on the forgivable portion of your loan. Nusenda will notify you when we resume processing Loan Forgiveness Applications.


We are sharing the information below in an effort to help you understand these upcoming changes. Please note that this is based solely on Nusenda’s interpretation of the legislation and is subject to change based on the forthcoming guidance from the U.S. Department of Treasury and the U.S. Small Business Administration (SBA). Due to the rapid pace of these changes and impending guidance, Nusenda makes no representation regarding this information. We encourage all business members to visit these resources for updates as the Interim Final Rules are published.


Please see our Important Updates Regarding the Paycheck Protections Program for additional information on Second Draw PPP Loans.


Simplified Forgiveness Applications — Loans of $150,000 or Less

Within 24 days of enactment, the SBA will provide a simplified forgiveness application for all loans of $150,000 or less. Congress states that this will be one-page application with a certification of the amount of the loan proceeds used for Payroll Costs and jobs retained along with an attestation of the accuracy of that information and compliance with the program. No additional application material or supporting documents will be required.


Remember that the SBA retains the right to audit any PPP loan. Borrowers are required to retain all records relating to your Forgiveness Applications for the following time-frames:

  • Employment Records for a 4-year period
  • Records relating to all other Eligible Expenses for a 3-year period

EIDL Advance Deduction

Congress has removed the requirement to deduct Economic Injury Disaster Loan (EIDL) advances from the amount of PPP Loan Forgiveness. The act further requires that the SBA make borrowers whole if they have already received PPP Forgiveness and were impacted by an EIDL advance deduction for the deduction of these amounts from their Loan Forgiveness.


Changes to Eligible Expenses

The Act expands the use of PPP loan proceeds including additional eligible expenses. This does not remove the requirement that at least 60% of the loan proceeds must be used for Payroll Costs. The change is effective for all PPP loans that have not already been forgiven.


Please see our Important Updates Regarding the Paycheck Protections Program for additional details on these changes.