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The SBA Paycheck Protection Program Loan through American Express

A loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

Quick Facts

FAQs

Can you tell me more about the Loan Forgiveness Application process?

To apply for loan forgiveness, you must complete and submit a Loan Forgiveness Application, and supporting documentation, online through American Express’s Forgiveness Portal. We will notify you when we begin to accept applications.

Once you have submitted your completed application, we have 60 days to review your application and issue a decision, which gets submitted to the SBA.

Once the SBA confirms our decision, the forgiven portion of your loan—if any—will be deducted from your outstanding balance. Interest will not accrue on the forgiven amount.

To review the Loan Forgiveness Application forms and instructions, please visit the Paycheck Protection Program homepage of sba.gov or treasury.gov.

What documents am I required to submit along with my Loan Forgiveness Application?

You can find this information on page 6 of Instructions for Loan Forgiveness Application Form 3508 and Page 4 of Instructions for Loan Forgiveness Application Form 3508EZ, both of which are found on the Paycheck Protection Program homepage of sba.gov or treasury.gov.

You will be required to upload this supporting documentation in the American Express Loan Forgiveness Portal.

How much of my loan can be forgiven?

As stated in the PPP Interim Final Rules relating to forgiveness, up to the full principal of the loan and any accrued interest can be forgiven. The forgiveness amount will depend on amounts spent during your Covered Period on payroll and nonpayroll expenses and the status of your employee headcount and salaries.

At least 60 percent of your loan funds must be used for payroll costs in order to be eligible for full forgiveness. For other forgiveness criteria, please review the Loan Forgiveness Application forms and instructions. If you do not meet all criteria, you may still be eligible for partial forgiveness.

Please review the Loan Forgiveness Application forms and instructions on the Paycheck Protection Program homepage of sba.gov or treasury.gov.

Am I required to apply for forgiveness?

No. Applying for forgiveness is optional.

If you elect not to apply for forgiveness for your PPP loan, you will need to start making payments on your PPP loan 16 months after your loan disbursement date. Please note that interest accrues on PPP loans during the deferment period.

Should I be using Form 3508EZ or Form 3508 for forgiveness application?

There are two Loan Forgiveness Applications. The SBA has created a checklist to be used to identify whether Form 3508EZ, a shortened Loan Forgiveness Application form, or Form 3508 is appropriate for you. You will be taken through this checklist in the American Express Loan Forgiveness Portal.

If you have additional questions about the Form 3508EZ or Form 3508, please visit the Paycheck Protection Program homepage of sba.gov or treasury.gov to find the instructions and checklist.

What is the “Covered Period” of my loan when I apply for forgiveness?

Your “loan forgiveness Covered Period” is the 24-week period beginning on the date your PPP loan is disbursed; or, if your PPP loan was approved by the SBA before June 5, 2020, you may elect to have your loan forgiveness Covered Period be the 8-week period beginning on the date your PPP loan was disbursed. In either case this is the period of time, if you want to be eligible for forgiveness, in which you have to use your loan proceeds.

The loan forgiveness Covered Period of any borrower will end no later than December 31, 2020.

When is Alternative Payroll Covered Period available to a Borrower?

Alternative Payroll Covered Period is the period of time in which you incurred payroll costs eligible for forgiveness. It is used at your election only if you have a biweekly (or more frequent) payroll schedule. Otherwise, you would use the Covered Period for incurred payroll costs. The Alternative Payroll Covered Period may only be used for calculating eligible payroll costs. An eligible nonpayroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.

When do I need to start repaying my loan if I apply for forgiveness?

If you apply for forgiveness, the PPP Interim Final Rules states the repayment begins once the SBA makes a decision on your Loan Forgiveness Application. However, American Express is granting all of its PPP borrowers a minimum of 6 months of payment deferral from the date of their loan disbursement, regardless of when the SBA decision on loan forgiveness is made.

If you choose not to apply for forgiveness or you do not apply for forgiveness before within 10 months after the end of your Covered Period, repayment begins 16 months after your loan disbursement date.

When does my loan start accruing interest?

Interest starts accruing from the date of loan disbursement.

Do I need to store documents and the application forms? For how long?

Please reference the full list of documents that should be saved for your records in page 6 of Instructions for Loan Forgiveness Application Form 3508 and Page 4 of Instructions for Loan Forgiveness Application Form 3508EZ.

You must 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.

‡ Terms and Conditions
American Express will not pay any agent that assists the borrower or was hired, retained or consulted by the borrower for purposes of obtaining financing through the Paycheck Protection Program.