How should we track our Paycheck Protection Program funds?
I got a statement in the mail for my PPP loan (or I am seeing it when I log into my capitalone.com account), including a payment slip. I know it says that the balance due is $0, but do I need to make a payment?
If your PPP loan is fully forgiven, you will not owe payments after your loan balance is $0.
Please be aware, you must begin making principal and interest payments if you:
While you can still apply for forgiveness until your loan’s maturity date, you must begin making principal and interest payments if you don’t submit a complete application before the end of your payment deferment period.
If you apply for and receive forgiveness, we will return any overpayments.
If your loan is not fully forgiven, you will pay principal and interest monthly payments based on the remaining balance and the remaining term of the loan. You’ll receive loan statements—which will include payment details and other important information—in the mail.
I see that I am being charged interest. Can you tell me more about that?
All PPP loans through all lenders have an interest rate of 1 percent based on guidance issued from the SBA and Treasury. Interest accrual begins as of the date of loan funds disbursement, or the day your loan funding hits your account.
If you apply for forgiveness and your loan is fully forgiven, the SBA will pay any principal and interest accrued. If your loan is partially forgiven, the amount of principal and interest you owe will be reduced based on the amount forgiven.
What happens if I pay my loan in full before applying for forgiveness?
Per SBA guidelines, borrowers that have paid off their loan in full ahead of applying for loan forgiveness will be able to reinstate their loans and apply for forgiveness.
Can my loan be forgiven?
Yes, but you must apply for forgiveness and demonstrate that you meet the requirements set by the SBA. All loan forgiveness applications are subject to review by the SBA. We recommend you regularly check the SBA website or Treasury website for updates and the latest information on loan forgiveness.
How do I apply for forgiveness?
We’re accepting 3508S, 3508EZ and 3508 loan forgiveness applications for First and Second Draw Paycheck Protection Program (PPP) loans. To submit your application, please email pppforgivenessoffice@captialone.com who will respond within two business days to provide next steps
The streamlined loan forgiveness application (3508S) is available for borrowers who received a PPP loan of $150,000 or less, while 3508EZ and 3508 are available for loans of all sizes. Per SBA guidance, borrowers with a Second Draw PPP Loan in excess of $150,000 must submit a loan forgiveness application for their First Draw PPP Loan before or simultaneously with the loan forgiveness application for their Second Draw PPP Loan, even if the calculated amount of forgiveness on their First Draw PPP Loan is zero. Please visit the SBA PPP loan forgiveness website to familiarize yourself with these forms and instructions.
Once Capital One has received all of the required information and documents, we have 60 days to review your application and submit our forgiveness decision to the Small Business Administration (SBA). Upon receipt of our decision, the SBA has 90 days to complete its review.
Please note: in some cases, the SBA may take longer than 90 days to complete its review. As we receive updates from the SBA on application status, we will make every effort to keep borrowers informed.
In the meantime, we strongly recommend that you begin preparing now by carefully reviewing the SBA’s application and instructions for:
In particular, please closely review the instructions for the information you must provide in order to apply for forgiveness and the certifications that the SBA requires you to make in the loan forgiveness application.
What are my options for applying for loan forgiveness?
The SBA has several loan forgiveness application options: Form 3508S, Form 3508EZ and Form 3508. The Coronavirus Response and Relief Act introduced a simplified loan forgiveness application (3508S) for borrowers that received a Paycheck Protection Program (PPP) loan of $150,000 or less.
We’re accepting 3508S, 3508EZ and 3508 loan forgiveness applications for First and Second Draw Paycheck Protection Program (PPP) loans. To submit your application, please email pppforgivenessoffice@captialone.com who will respond within two business days to provide next steps
When am I eligible to apply for forgiveness?
Per the SBA’s website, a borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers must begin making loan payments to their PPP lender.
Please consult SBA’s website or Treasury website for additional information. Note that the requirements may change based on additional SBA guidance.