PPP Forgiveness

Latest Guidance


The Flexibility Act provides that no payment is due on your PPP Loan until the earlier of:

  • SBA remits the forgiveness amount determined to be due on your loan, if any (or determines that no forgiveness shall be granted); or
  • ten (10) months after: (i) the end of the “Covered Period” or (ii) December 31, 2020 (whichever is earlier) if you do not apply for loan forgiveness by this date.

This means that your deferment period is extended and you do not need to make a payment at the end of the 6-month deferment period referenced in your PPP Note.


The Flexibility Act gives borrowers the choice to extend the “Covered Period,” (the period in which PPP Loan proceeds must be spent in order to be eligible for forgiveness) from 8 weeks to 24 weeks following the initial PPP Loan disbursement.

This means that you have up to 24 weeks to spend your PPP Loan funds to qualify for forgiveness.


The Flexibility Act reduces the minimum payroll requirement from 75% to 60% of the PPP loan funds spent during the Covered Period to qualify for forgiveness. Therefore, you may use up to 40% of your PPP Loan for PPP eligible purposes other than payroll.

This means that you may spend up to 40% of your PPP Loan on expenses including business rent, business related mortgage interest, or business related utilities and still qualify for forgiveness.


The Flexibility Act provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrower that have not been able to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19; and also provides a safe harbor to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.

This means that you may still qualify for forgiveness, even if you had to reduce your workforce due to government directives.


DO NOT make any PPP Loan payments until we have advised you that payments are due. We will contact you regarding any necessary modifications to your PPP Loan documents

DO visit our PPP Loan forgiveness portal using the button below to complete your PPP loan forgiveness application.

PPP Loan Forgiveness Portal

With the aim of easing the burden on business owners and maximizing the extent of their loan forgiveness, we have launched a PPP Loan Forgiveness Portal for Meridian Bank PPP customers. This interactive and user-friendly new platform will ensure easy and efficient processing of PPP loan forgiveness requests with the SBA, allowing users to:

  • Securely upload and catalog documents
  • Use the forgiveness calculator to estimate your forgiveness eligibility
  • Electronically sign the final loan forgiveness application
  • Streamline the process so you can get back to business


PPP Loan Forgiveness Portal Tutorial


What is the timeline for PPP Loan Forgiveness?

Contact Info

Reach out to us at any time with questions:

Rocco Perate
Senior Vice President, Small Business Administration Lending
Meridian Bank
SBAForgiveness@meridianbanker.com  |  833.920.0025