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Illustration of business buildings
Illustration of business buildings
Illustration of business buildings

Ready, set, document.

Congratulations again on being approved for the Paycheck Protection Program (PPP) loan.

The most important thing you can do now is spend and document these funds correctly. We want to make sure they are forgiven so you don’t have to pay back a single cent.

Ready to apply now?

If you are ready to apply, visit our application page to learn about the process and get started. Discuss tax implications with your CPA or a tax professional.

Apply for forgiveness


  • You must apply for forgiveness, as forgiveness is not automatically granted.
  • Any breach, default, or misrepresentation during the application process will put forgiveness at risk. i.e. if someone waits until the loan gets termed out and then misses a payment before applying for forgiveness, forgiveness is at risk.
  • Improper use of PPP funds can lead to - no debt forgiveness, potential fines, criminal penalties, and civil penalties.


  • 24 weeks to spend funds; this covered period starts the day funds are disbursed or your first payroll date (“alternative covered period”).
    • If you received your loan before June 5 th, 2020, you can choose to use the 8 week covered period. During this period, you do not need to make any payments.
  • After your covered period ends, you have 10 months to submit your forgiveness application.
  • All covered periods end December 31, 2020.

Calculate your PPP timeline

When was your loan funded, when do you expect it to be, or when was your first payroll payment?

How long is your covered period?


Covered period.

You must spend your loan by:

You have eight or 24 weeks from your funding date to spend 100% of your funds.


Apply for forgiveness by:

You have 10 months from the end of your covered period date to submit your application for forgiveness.


Your repayment starts (if loan not forgiven):

If you do not apply for forgiveness, repayments starts 10 months after the end of your covered period. If you do apply for forgiveness, repayment starts ~one month after the SBA has determined the unforgivable amount.

The last day to rehire/restore wages: Thu Dec 31 2020

This tool is for informational purposes only. For best results, please use a modern browser like Apple Safari, Google Chrome, Microsoft Edge, or Mozilla Firefox.

How to spend.

In order for your loan to be forgiven, funds must be used towards permissible and forgivable expenses.

  • If members unintentionally use funds for unapproved expenses, SBA may deem those funds unforgivable.
  • If members knowingly use funds for unauthorized purposes that could be considered fraudulent, the member could be subject to fines and other penalties.

Forgivable uses.

Payroll costs (at least 60%).

  • Salaries up to $100k, commissions, tips, group health, paid sick leave, paid family and medical leave, state and local taxes, and insurance premiums. 1
  • Employee Retention – based on FTE numbers from either 2/15/19 to 6/30/19 or 1/1/20 to 2/29/20.
  • Paying same wage – if wages were cut, member can restore wages by 12/31/20 and forgiveness amount will not be reduced.

Other Costs (up to 40%).

  • Mortgage interest, rent, equipment lease payments, and utilities (electricity, gas, water, transportation, phone, internet, but not entertainment). All these must be in place prior to 2/15/20.

Excluded items.

  • Compensation of an employee in excess of $100,000.
  • Employer’s share of federal payroll taxes (i.e. SSI and Medicare).
  • Compensation of employees who reside outside of US.
  • Qualified sick and family leave under the Families First Coronavirus Response Act.

How to document.


  • The number of FTEs on payroll – IRS 941s for the period, state quarterly tax reports
  • Wages – IRS 941s for the period, state quarterly tax reports, bank account statements, third party payroll reports, cancelled checks, and account statements on health insurance and retirement contributions.


  • Mortgage interest, rent, utilities – lender’s amortization schedules for mortgage interest and proof of payment
  • Lease agreement and proof of payment for rent
  • Invoices, receipts, or cancelled checks.

Additional resources.

Contact us.

Please contact your STCU business banker. We'll be happy to help answer questions you may have. You can reach our commercial and business team by:

  • Calling (877) 304-7185.
  • Visiting our team page.


Note: all content is based on the latest information from the SBA and is subject to change.

*All loans subject to approval.

1For amounts paid to owners (owner-employees, a self-employed individual, or general partners) using a 24-week Covered Period, this amount is capped at $20,833 (the 2.5-month equivalent of $100,000 per year) for each individual or the 2.5-month equivalent of their applicable compensation in 2019, whichever is lower. For members using an 8-week Covered Period, this amount is capped at $15,385 (the eight-week equivalent of $100,000 per year) for each individual or the eight-week equivalent of their applicable compensation in 2019, whichever is lower. For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period.