Paycheck Protection Program

Woodforest has been honored to work alongside small businesses in local communities to procure needed funds under the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). We are no longer taking new applications. Our teams have shifted efforts to processing the remaining applications received and we are ramping up to assist you with the PPP loan forgiveness process.

Please review the forgiveness information below carefully. It is imperative you understand the rules and prepare documentation on how you spend the funds. Woodforest will contact you with additional information on how to submit your request for forgiveness and supporting documentation electronically. Please monitor your email and check our website regularly for more details.

Those who did not receive approval will receive a communication soon. Please know your Woodforest family is still here and ready to help, dedicated to serving your small business during this unprecedented time. Call us (toll-free) at (800) 685-6783 for questions or additional assistance.

To ensure your business can maximize the amount of your PPP loan that may be forgiven, and to assist with the timely processing of forgiveness requests, we are providing the following information gathered from the recent SBA guidance on PPP loan forgiveness.

We recommend you visit for the most up-to-date guidance and rules regarding the PPP from the SBA and the Treasury Department.

Please note that other eligibility requirements may apply, and it is important you consult with your professional advisors if you have any questions about the SBA guidance or rules.

Question sign imageHow much of my loan will be forgiven?
  • The amount of loan forgiveness can be up to the full principal amount of the loan plus any accrued interest.
  • The actual amount of loan forgiveness will depend on how the loan funds are used.
Question sign imageWhat if all, or part, of my loan is not forgiven?

You will be responsible for repayment of any principal and interest amounts not forgiven in accordance with the terms of the Promissory Note you signed.

Question sign imageWhat can I do to make sure that I am eligible for forgiveness of the maximum amount of my PPP loan?

For any part of the loan to be eligible for forgiveness, it is critical that you use the PPP funds according to the SBA rules. If all SBA rules and steps are properly followed, it is anticipated the SBA will forgive the entire balance. Failure to follow the guidance will likely result in a reduction of the amount of the loan forgiven. Some important things to remember and keep track of during this 8-week period:

  • For forgiveness purposes, PPP funds may only be used for:
    • Payroll costs1
    • Mortgage interest, rent or utility payments (all under agreements in place before February 15, 2020)2
  • At least 75% of the loan must be used for payroll costs. The amount of your loan eligible for forgiveness will most likely be reduced if you do not use at least 75% on payroll costs.
  • All funds must be spent during the 8-week period after you receive the funds.
  • You must maintain the same number of full-time equivalent (FTE) employees.3
  • You cannot reduce salaries or wages by more than 25% for any employee making under $100,000.
  • If you have already reduced employee or salary levels, you can restore both to their previous levels by no later than June 30 and still be eligible for forgiveness of the full amount of the loan.4
  • You must keep accurate records and save all documentation verifying your use of the PPP loan funds – you will need to provide documented proof of how you spent the funds and certify those records are true and accurate.
Question sign imageWill I owe any money on my PPP loan?

You will very likely owe money on the loan if:

  • You use the funds for anything other than payroll costs, mortgage interest, rent, and utilities payments, as described above.
  • You do not use at least 75% of the funds for payroll costs; no more than 25% spent on non-payroll costs will be forgiven.
  • You do not use the entire amount, for authorized uses, during the 8-week period after you receive the funds.
  • You do not maintain your staff levels; or if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 in 2019, and do not restore those levels before June 30, 2020.
Question sign imageHow do I apply for forgiveness of my PPP loan and when should I apply?

As we near the forgiveness period, Woodforest will contact you with additional information on how to submit your request for forgiveness and supporting documentation. Please monitor your email and check our website regularly for more details.

  • Forgiveness of the PPP loan is not automatic and a request for loan forgiveness must be submitted to Woodforest.
  • The SBA has issued an application for borrowers to request loan forgiveness. Woodforest is setting up a system to accept and process the SBA forgiveness applications, all of which must be submitted electronically. More details will be posted soon.
  • Payments are not due on your PPP loan for the first six months of the loan, so if you plan to request forgiveness of your loan – whether all of it or just part of it – you should submit your request and supporting documentation as quickly as you can after the 8 week period ends.
  • Once Woodforest receives your request for loan forgiveness, we will determine if the documentation is complete (within 60 days) and then forward to the SBA for final determination.
Question sign imageWhat kind of documentation do I need to provide?

You must provide documents that verify your use of PPP funds during the 8-week period after receiving the loan funds. This documentation includes:

  • Verification of the number of full-time equivalent employees on payroll and their pay rates; payroll tax filings reported to the IRS, and state income, payroll and unemployment insurance filings.
  • Verification of payments on covered mortgage interest, rent payments, or utility payments.
  • Certification from the borrower or an authorized representative of the business that the documentation provided is true and correct and the forgiveness amount requested was used to retain employees and make eligible mortgage interest, rent, and utility payments.

1) Payroll costs are defined in the SBA rules to include: salary (not more than $100,000 on an annualized basis for any employee), wages, commissions, cash tips; vacation, parental, family, medical or sick leave; allowance for separation or dismissal; employee benefits such as payment for group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees. SBA First Interim Final Rule. For self-employed individuals who file a 2019 Form 1040 Schedule C, the funds may also be used for owner compensation replacement. Note the forgiveness amount for owner compensation replacement is limited to 8 weeks of net profit. Please see the additional rules for self-employed individuals. SBA Third Interim Final Rule.

2) For self-employed individuals who file a 2019 Form 1040 Schedule C, covered mortgage interest, rent and utility payments also must be deductible as business payments to be forgiven.

3) The same number of full-time equivalent (FTE) employees must be maintained during the 8-week period after you receive the funds when compared to the average number of FTEs you had in February 15, 2019 - June 30, 2019 or January 1, 2020 - February 29, 2020. It is your choice which period is used for this comparison.

4) If a good faith, written offer to re-hire is declined by a former employee, and documented by employer, it will not reduce the eligible forgiveness amount. SBA FAQs.

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