Review our Starter Tips before you start your application.

• Understand covered expenses and timing. To qualify for loan forgiveness, the PPP funds must be used for eligible costs incurred or paid during a 24-week (168-day) covered period (ending December 31, 2020 at the latest). If you received your loan before June 5, 2020, you can choose an 8-week (56-day) or 24-week (168-day) covered period. You’ll want to use the funds for eligible expenses, ensuring that you:
  • Spend at least 60% of the funds on payroll.
  • Use the remainder of the funds on eligible expenses (examples include: mortgage interest, rent, lease payments, and utilities based on current SBA criteria for PPP loan forgiveness).
• Gather required documentation. To streamline your application process, review and prepare all the documents in RCU’s Application Checklist of Required Documentation prior to starting your application. 3508 Standard Required Document Checklist | 3508EZ Required Documents Checklist.
• Get familiar with the SBA’s PPP Forgiveness application. You’ll use either the Standard Form 3508, or Form 3508EZ. The form you use will depend on your circumstances. You should use Form 3508EZ if you meet the conditions, otherwise use Standard Form 3508. The following documents are provided for reference and give an overview of what you will be expected to provide, and direction on how to calculate the information requested. Our online forgiveness portal will guide you through the appropriate steps, including completion of the application, so there’s no need to complete the form at this time.
  • SBA Form 3508 Standard: Application & Instructions (reference only)^*
  • SBA Form 3508 EZ: Application & Instructions (reference only)^*

  ^*Please do not submit this PPP loan forgiveness application downloaded from the SBA site. RCU’s online forgiveness application process is specifically designed to give our Members the best experience possible.

• Consider engaging professionals. Consider discussing with your financial and/or tax advisor before applying for forgiveness. We’ve also learned that select payroll service providers are providing services to their clients for their forgiveness application. Paychex is one of RCU’s preferred vendors who provides a free service to their clients that will auto-generate all the necessary information for the PPP loan forgiveness application with great ease and accuracy. We strongly recommend you use this service if you can. If you are a client of Paychex, the report members will want to request from Paychex is the PPP Forgiveness Application Report. All Paychex clients have the option to pull this report themselves within the Paychex Flex online system or they can request it directly from their Payroll Specialist. This will save you hours of time trying to figure out the complex calculations required. If you don’t currently have a payroll service provider, Paychex is offering a 25% discount to RCU Members on their services. To request for additional information from Paychex click here. Here are some other payroll services we’re currently aware of providing PPP forgiveness services: ADP, Gusto, Intuit and Quickbooks. If you are a client to any one of these payroll services, please reach out to your representative to inquire about their PPP forgiveness services.

As a reminder, you have a 10-month window from the end of the covered period of your PPP loan to submit your forgiveness application, so there is no need to rush. For the best experience, gather all the recommended supporting documents to substantiate the use of your PPP loan before you apply.

• If you received your SBA PPP loan through RCU, you’ll receive an email invitation from us when the online application is available. Detailed instructions will be provided in the invitation. We’ll be inviting applicants in waves to ensure we are able provide you a personalized, quality Member experience. Invites will be prioritized by applications that are due first.
• If you are submitting a 3508 Standard application:
  • Download our step-by-step questionnaire instructions on how to complete your application.
• If you are submitting a 3508 EZ application:
  • Download our step-by-step questionnaire instructions on how to complete your application or watch the watch the three-part playlist below:
    Part I - Getting Started Part II - Loan and Borrower Information Part III - Final Steps
• Follow the steps in the online application to verify the amount you’re requesting to be forgiven. Make sure to upload all the recommended supporting documents before you submit your application.
• Once you start your online application, you’ll be able to save and come back to it until you’re ready to submit.
• You have until the maturity date of the loan to apply for loan forgiveness, but if you submit your loan forgiveness application within 10 months 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.
• Friendly reminders:
  • Collect and upload all your required documents before submitting your PPP loan forgiveness application.
  • Once you receive RCU’s email invitation to apply for PPP loan forgiveness, you must apply online using our dedicated application system.We are unable to accept applications downloaded from the SBA site. Completion of your PPP forgiveness application must be completed through the online application invitation RCU sends you.

Once you’ve submitted your PPP loan forgiveness application, our team will:

• Review to ensure your application is complete, and documents are verified.
• Submit your application to the SBA on your behalf.
• Notify you of the decision, based on U.S. Small Business Administration (SBA) guidelines.

If your loan is partially forgiven, you’ll receive communication with the amount and date of your first payment for the unforgiven portion. Your RCU PPP loan will operate like a traditional term loan with monthly payments.

If you need assistance, email paycheckprotection@redwoodcu.org or call (707) 576-5070 option 4, and a member of our PPP loan forgiveness team will get back to you within 24 hours.

• Background: The Federal Paycheck Protection Program (PPP) is meant to provide small business with funds to allow to pay their employees while they are unable to operate due to the impacts of COVID-19. If used as intended, the business may have their loan forgiven by the SBA in full or in part. The program began on 04/03/20 and remained open through 08/08/2020.
• Eligibility: Eligible businesses included small businesses with less than 500 employees, sole proprietorships, and independent contractors. There are important exclusions, including any business illegal under federal, state, or local law (including cannabis businesses).
• Usage of Loan Proceeds: The business must primarily use the loan to pay payroll costs but can include some other expenses such as mortgage interest, rent, utilities, and to refinance disaster assistance loans obtained from the SBA between 01/31/2020-04/30/2020. For your other eligible expenses—rent, utilities, and/or mortgage interest—you must have claimed (or been able to claim) a deduction for those expenses on your 2019 Form 1040 Schedule C. Proof of having paid those expenses during your covered period, such as rent or lease payments, will be required.
• Qualifying Payroll Costs: Allowed payroll costs are broadly defined and include compensation to employees, payment for leave time, health and retirement payments, and state and local taxes. For independent contractors or sole proprietors, it includes wages, commissions, income, or net earnings from self-employment or similar compensation. There are important exclusions, including compensation to employees living outside the USA, compensation of individual employees in excess of an annual salary of $100K, and some taxes.
• Key Loan Terms:
  • Maximum loan amount: the lesser of $10 million or average monthly payroll costs X 2.5
  • Interest rate: 1.0%
  • Maturity date: 2 years (can be modified up to 5 years)
  • Limitation on # of PPP loans: borrowers are limited to no more than 1 PPP loan
  • First payment due date: after SBA pays off the forgiven amount, or 10 months after funding.
• Loan Forgiveness: Depending on how the business uses the loan, PPP loans can be forgiven by the SBA in whole or in part. There are important restrictions the business must abide by in order to qualify for loan forgiveness, including keeping employees on payroll or quickly rehiring them within 24 weeks of receiving the loan and using the loan primarily for payroll (only 40% may be used for non-payroll eligible expenses).

Review our Starter Tips before you start your application.

• Understand covered expenses and timing. To qualify for loan forgiveness, the PPP funds must be used for eligible costs incurred or paid during a 24-week (168-day) covered period (ending December 31, 2020 at the latest). If you received your loan before June 5, 2020, you can choose an 8-week (56-day) or 24-week (168-day) covered period. You’ll want to use the funds for eligible expenses, ensuring that you:
  • Spend at least 60% of the funds on payroll.
  • Use the remainder of the funds on eligible expenses (examples include: mortgage interest, rent, lease payments, and utilities based on current SBA criteria for PPP loan forgiveness).
• Gather required documentation. If the Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application form, you will be able to use the 3508EZ application. The only required documentation necessary on Payroll is your 2019 Schedule C. Documentation for non-payroll eligible expenses can be found here: 3508EZ Required Documents Checklist.
• Get familiar with the SBA’s PPP Forgiveness application. You’ll use Form 3508EZ. The following documents are provided for reference and give an overview of what you will be expected to provide, and direction on how to calculate the information requested. Our online forgiveness portal will guide you through the appropriate steps, including completion of the application, so there’s no need to complete the form at this time.
  • SBA Form 3508 EZ: Application & Instructions (reference only)^*

    ^*Please do not submit a PPP loan forgiveness application downloaded from the SBA site. RCU’s forgiveness process is specifically designed to give our Members the best forgiveness experience possible.

• Consider discussing with your financial and/or tax advisor before applying for forgiveness.

As a reminder, you have a 10-month window from the end of the covered period of your PPP loan to submit your forgiveness application, so there is no need to rush. For the best experience, gather all the recommended supporting documents to substantiate the use of your PPP loan before you apply.

• If you received your SBA PPP loan through RCU, you’ll receive an email invitation from us when the online application is available. Detailed instructions will be provided in the invitation. We’ll be inviting applicants in waves to ensure we are able provide you a personalized, quality Member experience. Invites will be prioritized by applications that are due first.
• Download our step-by-step questionnaire instructions on how to complete your 3508 EZ application or watch the three-part playlist below:
  Part I - Getting Started Part II - Loan and Borrower Information Part III - Final Steps
• Follow the steps in the online application to verify the amount you’re requesting to be forgiven. Make sure to upload all the recommended supporting documents before you submit your application.
• Once you start your online application, you’ll be able to save and come back to it until you’re ready to submit.
• You have until the maturity date of the loan to apply for loan forgiveness, but if you submit your loan forgiveness application within 10 months 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.
• Friendly reminders:
  • Collect and upload all your required documents before submitting your PPP loan forgiveness application.
  • Once you receive RCU’s email invitation to apply for PPP loan forgiveness, you must apply online using our dedicated application system.We are unable to accept applications downloaded from the SBA site. Completion of your PPP forgiveness application must be completed through the online application invitation RCU sends you.

Once you’ve submitted your PPP loan forgiveness application, our team will:

• Review to ensure your application is complete, and documents are verified.
• Submit your application to the SBA on your behalf.
• Notify you of the decision, based on U.S. Small Business Administration (SBA) guidelines.

If your loan is partially forgiven, you’ll receive communication with the amount and date of your first payment for the unforgiven portion. Your RCU PPP loan will operate like a traditional term loan with monthly payments.

If you need assistance, email paycheckprotection@redwoodcu.org or call (707) 576-5070 option 4, and a member of our PPP loan forgiveness team will get back to you within 24 hours.

• Background: The Federal Paycheck Protection Program (PPP) is meant to provide small business with funds to allow to pay their employees while they are unable to operate due to the impacts of COVID-19. If used as intended, the business may have their loan forgiven by the SBA in full or in part. The program began on 04/03/20 and remained open through 08/08/2020.
• Eligibility: Eligible businesses included small businesses with less than 500 employees, sole proprietorships, and independent contractors. There are important exclusions, including any business illegal under federal, state, or local law (including cannabis businesses).
• Usage of Loan Proceeds: The business must primarily use the loan to pay payroll costs but can include some other expenses such as mortgage interest, rent, utilities, and to refinance disaster assistance loans obtained from the SBA between 01/31/2020-04/30/2020. For your other eligible expenses—rent, utilities, and/or mortgage interest—you must have claimed (or been able to claim) a deduction for those expenses on your 2019 Form 1040 Schedule C. Proof of having paid those expenses during your covered period, such as rent or lease payments, will be required.
• Qualifying Payroll Costs: Allowed payroll costs are broadly defined and include compensation to employees, payment for leave time, health and retirement payments, and state and local taxes. For independent contractors or sole proprietors, it includes wages, commissions, income, or net earnings from self-employment or similar compensation. There are important exclusions, including compensation to employees living outside the USA, compensation of individual employees in excess of an annual salary of $100K, and some taxes.
• Key Loan Terms:
  • Maximum loan amount: the lesser of $10 million or average monthly payroll costs X 2.5
  • Interest rate: 1.0%
  • Maturity date: 2 years (can be modified up to 5 years)
  • Limitation on # of PPP loans: borrowers are limited to no more than 1 PPP loan
  • First payment due date: after SBA pays off the forgiven amount, or 10 months after funding.
• Loan Forgiveness: Depending on how the business uses the loan, PPP loans can be forgiven by the SBA in whole or in part. There are important restrictions the business must abide by in order to qualify for loan forgiveness, including keeping employees on payroll or quickly rehiring them within 24 weeks of receiving the loan and using the loan primarily for payroll (only 40% may be used for non-payroll eligible expenses).