Applying for Loan Forgiveness

Please do not fill out and submit paper versions of the PPP Loan Forgiveness Applications forms – we are only accepting electronic versions of the application form completed through our portal.

Forgiveness for Loans Made in 2020
Email invitations to begin the Loan Forgiveness Application process have been sent to all borrowers who received a PPP loan with us in 2020. Emails were sent to the email associated with your PPP loan record (please check your spam or junk folders for messages from PPPforgiveness@mechanicsbank.com).

If you did not receive an email to begin the Loan Forgiveness Application process, or if you believe the email we have on record is not accurate, or is no longer in service, please email us at CaresAct@mechanicsbank.com with your contact name, business name, address and phone number and we will reach out to update our records.

Even if you have not applied for Loan Forgiveness yet, your loan payments are deferred until 10 months after the end of your applicable Covered Period. See below for more information.

Forgiveness for Loans Made in 2021
You will be eligible to apply for Loan Forgiveness once your Covered Period is complete. Loan proceeds must be spent during the 8- to 24-week “Covered Period” immediately following disbursement of the loan. We will send you an email invitation to begin the Loan Forgiveness process when the time is appropriate.

Our Forgiveness Portal
Even though you’ll fill out and sign our electronic PPP Loan Forgiveness Application Form, you still need to download a copy of the SBA’s form(s) for reference throughout this process. The SBA documents have detailed instructions and information to assist you through each step of the Forgiveness Application process, including information on expense eligibility, calculation, documentation requirements, definitions, etc.

Forgiveness Application Form & Instructions - 3508S
Forgiveness Application Form & Instructions - 3508EZ
Forgiveness Application Form & Instructions - 3508

Web Browsers and Settings

Please make sure you are using the latest web browser versions of either Google Chrome or Microsoft Edge (you may download either by clicking on the links). The Forgiveness Application Portal will not work with Internet Explorer (IE), Safari or Firefox .

Please adjust your browser settings to allow/permit “Third Party Cookies” and “Pop-up Windows” during the Forgiveness Application Process.

PPP Loan Payment Deferrals

As our earlier emails confirmed, your loan payments are deferred. Please note the following on payment due dates:

When is your first loan payment due?
As long as you file your Loan Forgiveness Application with us within 10 months after the last day of the maximum Covered Period of 24 weeks, your loan payments are deferred until the SBA issues a decision on your Loan Forgiveness Application.
The Interim Final Rule ( 13 CFR Part 120) posted to the Treasury Department website on January 19, 2021 reads as follows: When must a borrower apply for loan forgiveness or start making payments on a loan? If the borrower does not apply for loan forgiveness within 10 months after the last day of the maximum covered period of 24 weeks, or if SBA determines that the loan is not eligible for forgiveness (in whole or in part), the PPP loan is no longer deferred and the borrower must begin paying principal and interest. If this occurs, the lender must notify the borrower of the date the first payment is due.

Instructions & Forms

SBA Form 3508S (application and instructions)

SBA Form 3508EZ (application and instructions)

SBA Form 3508 (application and instructions)

Loan Forgiveness FAQs

Additional SBA Resources

SBA Website - Loan Forgiveness

U.S. Treasury Website

The Loan Forgiveness Process

Below is a summary of the steps you will go through, with additional information you should review for each step. Please see the tools and guides in the box below for additional information, application instructions and answers to common questions.

We are limited in our ability to answer questions regarding PPP Loan Forgiveness until your application process begins. At that time you’ll have the ability to email your loan processor, but please note you should contact your preferred financial, tax or legal advisor for any questions about your loan forgiveness. You should also review the information on the SBA and US Treasury websites (links provided above and below). You may contact us before you begin the PPP Loan Forgiveness process at CaresAct@mechanicsbank.com, but please note, due to the large volume of emails we receive each day, you may not receive a response for 48 hours. Thank you for your patience and understanding.

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Disclosure:

All loans and credit products subject to program eligibility, collateral, underwriting approval and credit approval.

Financial, Tax and Legal Advice - We recommend that you obtain professional advice from your preferred financial, tax or legal advisor before beginning a PPP Loan Application and/or the Loan Forgiveness Application process. The information we are providing on our website is intended to help you navigate either process, and is based on the Bank’s interpretation of laws, rules, regulations, and guidance provided by the SBA and U.S. Department of Treasury regarding the Paycheck Protection Program at the time this page was authored. While the information provided is intended to be accurate it should not be considered, and is NOT INTENDED TO BE, FINANCIAL OR LEGAL ADVICE. This page and its content may be updated periodically if there are changes to the Program. As we’ve all seen, the Program is rapidly evolving and the Bank cannot be held responsible for any errors or omissions as a result of this. Please consult the SBA and U.S. Treasury websites for the most up-to-date information. In the event of any discrepancies between the information on our website and the SBA or U.S. Treasury sites, please follow official SBA or U.S. Treasury guidance.