We understand loan forgiveness for your SBA PPP loan is important to your business.  SBA recently made changes to the SBA PPP rules that impact the forgiveness process:

  1. You now have a 24-week “covered period,” the period in which you must spend the PPP loan proceeds for full loan forgiveness, starting on the date the funds were disbursed. If your PPP loan was funded prior to June 5, 2020, you still have the option to use the original 8-week covered period.
  2. You now must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%.
  3. You can use up to 40% of funds for eligible non-payroll costs, up from 25%.

The timeframe to apply for loan forgiveness has been extended. You now have more time to gather your documents and prepare your application. Based on the latest guidance from the SBA, you may submit a loan forgiveness application any time on or before the maturity date of your loan. However, if you submit your loan forgiveness application within 10 months of the end of the covered period, you won’t have to make any payments of principal or interest on your loan before the date the SBA makes a final decision on the loan forgiveness amount.

You can find up-to-date information on the rules of the program and loan forgiveness on the SBA website.  

The American Institute of CPAs has published a PPP Loan Forgiveness Calculator and a Self-Employed PPP Loan Forgiveness Calculator in Excel format to assist you in calculating forgiveness and completing the forgiveness application.  Verify information for accuracy. 

STEP ONE:  There are three available applications depending on your individual situation.  Review instructions for completing the Loan Forgiveness Application (SBA Form 3508S)Loan Forgiveness Application Form EZ, or Loan Forgiveness Application (SBA Form 3508). Requirements for all applications are outlined below.  Please note Application SBA Form 3508S is a simpler loan forgiveness application for PPP loans of $50,000 or less.  

STEP TWO:  Notify AgCarolina Farm Credit by email at ppp@agcarolina.com when you are ready to apply for loan forgiveness.  Please specify if you would like to complete the Loan Forgiveness Application (SBA Form 3508S), Loan Forgiveness Application (SBA Form 3508) or the Loan Forgiveness Application (SBA Form EZ).  You will receive an email with instructions for submitting your completed application and required documentation via secure message. 

STEP THREE: Submit your completed application and supporting documentation according to the instructions you receive from AgCarolina Farm Credit via email.  

STEP FOUR: Once we receive your application, it will be reviewed for completeness and submitted to the SBA for a decision.  We will keep you informed as we navigate each step of the forgiveness process.  Once a decision is received from the SBA, you will notified of the amount forgiven, any outstanding balance, and the due date of your first payment, if applicable.  


You may complete the PPP Loan Forgiveness 3508 form and Schedule A, with accompanying instructions.  You’ll also be required to submit documentation, including:

  • Paycheck Protection Program Loan Forgiveness
    • Bank account statements or third-party payroll service provider reports.
    • Tax forms including IRS Payroll tax filings (typically Form 941) and state quarterly business and individual wage reporting and unemployment insurance tax filings.
    • Payment receipts, cancelled checks, or account statements documenting employer benefits contributions.
  • FTE documentation showing the number of FTE employees for the FTE reduction reference period selected
  • Non-payroll documentation verifying the existence of obligations/services prior to February 15, 2020, and eligible payments, consisting of the following:
    • Business mortgage interest payments: account statements or amortization schedules and receipts or cancelled checks.
    • Business rent or lease payments: account statements or current lease and receipts or cancelled checks.
    • Business utility payments: account statements or invoices and receipts or cancelled checks.


  • The EZ form is available to borrowers who:

    • Are self-employee who had no employees
    • Or did not reduce wages > 25% AND did not reduce full time employees (FTEs)
    • Or did not reduce wages > 25% AND operations were impacted by COVID-19 operating restrictions

The documents required with the PPP Loan Forgiveness 3508EZ form, with accompanying instructions, are the same as listed above except for the following differences:

  • Form 3508EZ does not have a Schedule A.
  • The FTE report is not required.


  • The 3508S form is available to borrowers if the total PPP loan amount received from the lender was $50,000 or less.

  • This form requires fewer calculations and less documentation for eligible borrowers. 

  • Borrowers that use this form are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages.  

  • A borrower that, together with its affiliates, received PPP loans totaling $2 million or more cannot use this form.

The documents required with the PPP Loan Forgiveness 3508S form, with accompanying instructions, are the same as listed above for Form 3508 except for the following differences:

  • Form 3508S does not have a Schedule A.
  • The FTE report is not required.


For questions regarding this application process, please contact ppp@agcarolina.com or contact your loan officer.