PPP Loan Forgiveness

At Frost, we are proud to have helped many of our customers secure funds through the SBA’s Paycheck Protection Program (PPP) in order to help keep their businesses operational during these tough times. If you received a loan through the SBA’s Paycheck Protection Program (PPP), you may be eligible to request loan forgiveness.

The SBA has provided the Paycheck Protection Program Loan Forgiveness Application. You will need to complete this application and, when the SBA has released further guidance about loan forgiveness, submit it to the financial institution that funded your loan. We expect the SBA to release these details soon. We will begin accepting loan forgiveness applications once the SBA has released comprehensive guidance and details for this process.

Our PPP borrowers will be able to complete an electronic version of the SBA’s forgiveness application, which will ensure a quicker and more convenient experience than filling out a paper application.

We will email you and update this webpage once we receive further guidance from the SBA and the online application portal is available. In the meantime, we strongly recommend that you begin reviewing the application and become familiar with it, as it will be used during the online application process. You can also begin preparing for the application process by gathering the required documentation listed below. Please note, this information is subject to change based on new or updated guidance from the SBA.

  • Payroll documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period (which are both terms defined in the application) consisting of each of the following:
    • Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees
    • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
      • Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
      • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
    • Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount
  • Full Time Employee (FTE) Documentation showing:
    • The average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019;
    • The average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020 and February 29, 2020; or
    • In the case of a seasonal employer, the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive twelve week period between May 1, 2019 and September 15, 2019.
    Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period.

    The information above is taken from the SBA Paycheck Protection Program Loan Forgiveness Application, and may be revised by the SBA without notice. Please make sure to consult the application for full instructions concerning these documents.
  • The PPP Schedule A Worksheet contained in the application, or an equivalent report form your payroll system or payroll processor. The PPP Schedule A Worksheet is a tool that the SBA has created and included in the application to help you complete the application. Please fill it out prior to applying online because this information will be required in order to submit your application and it will be readily available for your reference, if completed beforehand.
  • The following documents related to the PPP Schedule A Worksheet:
    • Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary
    • Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 2; specifically, that each listed employee received during any single pay period in 2019 compensation at an annualized rate of more than $100,000.
    • Documentation regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for reductions in work schedule
    • Documentation supporting the PPP Schedule A Worksheet “FTE Reduction Safe Harbor.”
       
    You will need to maintain all records relating to your PPP loan, including documentation submitted with your PPP loan application, documentation supporting your certifications as to the necessity of the loan request and your eligibility for a PPP loan, documentation necessary to support your loan forgiveness application, and documentation demonstrating your material compliance with PPP requirements. The application requires that you retain all such documentation in your files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request.

Up to 100% of the PPP loan may be forgiven if at least 75% of the funds are used for payroll expenses. Up to 25% of the loan amount may be used to cover other business expenses required to keep your business afloat, including mortgage interest, rent and utility payments.


To qualify for loan forgiveness, borrowers must have maintained employee and compensation levels:

  • Number of Staff: loan forgiveness may be reduced if the full-time equivalent employee head count has decreased over a certain period
  • Compensation: loan forgiveness may be reduced if salary or wages decreased during certain periods by more than 25% for any employee that made less than $100,000 annualized in 2019

Please see the SBA’s Paycheck Protection Program Loan Forgiveness Application for the full terms and conditions of the employee headcount and compensation requirements.


Borrowers will need to complete and submit the SBA’s Paycheck Protection Program Loan Forgiveness Application and submit all of the documentation described in the application, including:

  • Third-party payroll service provider reports or bank account statements
  • IRS payroll tax filings and state income, payroll and unemployment insurance filings
  • Mortgage amortization schedules and account statements, lease agreements and lease account statements, and utility invoices and account statements as well as cancelled checks and/or payment receipts showing non-payroll payments

The information above is taken from the SBA Paycheck Protection Program Loan Forgiveness Application, and may be revised by the SBA without notice. Please make sure to consult the application for detailed and comprehensive listing of the required documents.


We are not accepting loan forgiveness applications at this time. We expect the SBA to release comprehensive guidance and details for borrowers and lenders about loan forgiveness soon. We will begin accepting loan forgiveness applications when this information is available.


All records relating to your PPP loan, including documentation submitted with your PPP loan application, documentation supporting your certifications as to the necessity of the loan request and your eligibility for a PPP loan, documentation necessary to support your loan forgiveness application, and documentation demonstrating your material compliance with PPP requirements. The application requires that you retain all such documentation in your files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request.


You will need to complete the SBA’s Paycheck Protection Program Loan Forgiveness Application and submit it to the financial institution that funded your loan. Our PPP borrowers will complete an electronic version of the application through the Frost PPP Loan Forgiveness online portal. We will notify our customers via email and update this website once the online application portal is available.


No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan forgiveness.


No, there are no prepayment penalties or fees.


Any remaining principal balance and applicable accrued but unpaid interest must be repaid. Payments will begin six months following the loan disbursement. Interest on the remaining principal balance will accrue at the rate of 1%. The total remaining principal will be re-amortized and principal and all accrued and unpaid interest must be repaid within two years of the initial loan disbursement.


You will not have to make any payments for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this period.


Please continue to check back here for the latest information about how and when to apply for loan forgiveness. In the meantime, you can visit the SBA’s website for additional important details and conditions on loan forgiveness.