Sometimes—but forgiveness depends on the specific loan program. Existing Paycheck Protection Program (PPP) borrowers may still qualify if they meet the program’s requirements and apply. Do not assume that a standard SBA 7(a), 504, Economic Injury Disaster Loan (EIDL), or disaster loan is forgivable just because the SBA is involved.
Which SBA loans may be forgiven?
“SBA loan” refers to several different programs, not one debt with one forgiveness policy. The clearest SBA forgiveness route in current guidance is for eligible existing PPP borrowers. SBA guidance for 7(a), 504, EIDL, and disaster loans instead describes repayment and servicing. The sources do not establish a general forgiveness program for those other loans, though borrowers should check the terms and current guidance for their specific loan rather than assume exceptional relief is impossible.
| Loan type | What current SBA guidance establishes |
|---|---|
| PPP | Eligible existing borrowers may apply for forgiveness if they meet program requirements. SBA PPP loan forgiveness |
| 7(a) and 504 | Guidance describes payment and servicing channels; account-specific questions should go to the lender or SBA servicing center. No general forgiveness program is established in the guidance reviewed. SBA loan payment guidance |
| EIDL and disaster loans | Guidance describes repayment terms and servicing; the EIDL page describes terms of up to 30 years for the disaster EIDL program covered there. No general forgiveness program is established in the guidance reviewed. SBA EIDL guidance |
PPP forgiveness: who can still apply?
The PPP stopped making new loans on May 31, 2021, but existing borrowers may still be eligible to apply for forgiveness. SBA says borrowers must meet employee-retention criteria and use the funds for eligible expenses. Eligibility depends on the borrower’s circumstances and the rules and form instructions applicable to the loan; having received a PPP loan does not by itself guarantee forgiveness. See the SBA COVID-era programs page for the program outline and forms.
Where to apply
Since March 13, 2024, borrowers of any loan size may use the SBA’s direct forgiveness portal. Borrowers may also apply through their PPP lender, which can explain its application process.
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When to apply and what happens if you wait
SBA says a borrower may apply after using the proceeds for which forgiveness is requested, and may apply up to five years from the date SBA issued the loan number. If no application is filed within 10 months after the covered period ends, payments are no longer deferred and begin according to the loan terms. Deferral is not forgiveness.
Which records are required?
- For loans of $150,000 or less, Form 3508S does not require additional documentation at submission. Keep supporting records available in case of a review or audit.
- Forms 3508 and 3508EZ require documentation with the application.
- Check the instructions for the form that applies to your loan and retain records showing how the proceeds were used, along with required payroll or other documentation.
How to find the right answer for your loan
- Identify the program. Check your promissory note or account statement for the loan type—such as PPP, 7(a), 504, EIDL, or another disaster loan.
- If it is PPP, check the applicable rules. Review the SBA eligibility criteria and instructions for the relevant forgiveness form, then assemble the required records.
- Submit or ask your lender. Use the SBA direct forgiveness portal or contact the PPP lender about applying. Do not treat a payment pause or deferral as approval of forgiveness.
- For another SBA loan, contact the servicer. Ask the lender or servicing center shown on your account about payment status, hardship or other available relief, and the loan documents that control your obligation. SBA directs borrowers to these channels for account-specific help; see its payment guidance.
Where to get help
For PPP direct-forgiveness assistance, use the resources listed on the SBA’s forgiveness page. For other PPP questions, the lender is generally the right first contact; SBA also provides information about contacting the agency and getting help. SBA Resource Partners, including SCORE and Small Business Development Centers, offer general small-business counseling, but they do not approve loan forgiveness.
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