What you need to know about SBA Paycheck Protection Program (PPP) loan forgiveness

We are here to help you understand how Wells Fargo customers may be eligible for U.S. SBA Paycheck Protection Program (PPP) loan forgiveness.

We know you’re eager to understand more about loan forgiveness and how you might be eligible. Please bookmark this page, which we’ll update regularly with the latest information from the SBA about loan forgiveness.

If you’ve received a PPP loan from Wells Fargo, here’s what you need to know:

  • The deposit you’ve received is technically a disbursement from a loan, and payments are deferred for 6 months. 
  • The loan will accrue interest at a rate of 1% during the deferment period.

According to the U.S. Small Business Administration (SBA), your entire Wells Fargo PPP loan may be forgiven if you use the money for eligible expenses during the eight-week period after you received it. 

  • You’ll be able to apply for loan forgiveness through Wells Fargo Business Online® or Commercial Electronic Office® (CEO®) after the eight-week period.
  • When you apply, you’ll need to provide documentation for your eligible expenses. 
  • After the six-month deferment period, any balance (including any accrued interest) that is not forgiven will become an 18-month term loan with an interest rate of 1%, and you’ll need to start making monthly payments. 

As you begin to use your money, make payments, and gather documentation, more questions will likely arise. Make sure to check this site frequently – we’ll continue to update it as information becomes available from the SBA. Read on for details or check the SBA site.

Loan use and payments

What can I use this loan for?

Only the amount of eligible expenses during the eight-week period after you received the funds may be forgiven. Please refer to the SBA site for eligible expenses.

When do I start making payments?

No payments are due for the first six (6) months, which is the deferment period. If any portion of your PPP loan is not forgiven, you’ll need to start making payments on month seven (7). During the deferment period, you can make principal only payments online.

How and when do I make payments? Will I get a monthly statement?

No payments are due for the first 6 months, which is the deferment period. After that, if any portion of your PPP loan is not forgiven, you’ll receive a monthly statement and will need to start making payments on or before the due date on your statement. 

After the deferment period, you will be able to pay the remaining balance of your PPP loan online or through the mail. At this time, we cannot accept PPP loan payments at our branches. During the deferment period, you can make principal only payments online.

What are the terms of this loan?

The loan will accrue interest at a rate of 1% during the six-month deferment period. After the deferment period, any balance (including any accrued interest) that is not forgiven will become an 18-month term loan with an interest rate of 1%, and payments will be due monthly.

Are there any fees for this loan?

There are no documentation or annual fees associated with the loan. However, if you are late on payments after the deferment period, you may be liable for late fees for any portion of the loan that is not forgiven.

For each payment of principal, interest, and/or fees that hasn’t been paid in full within 15 (fifteen) days after its date due, you will be assessed a late charge of $15 or five percent (5%) of the amount due, whichever is greater.

Will my loan be forgiven?

Please refer to the SBA site for more details as they become available.

How do I know how much of my loan will be forgiven?

The amount of loan forgiveness may be up to 100% of the principal amount of your PPP loan plus accrued interest if the money is used for eligible expenses. 

Please refer to the SBA site for more details as they become available.

How do I apply for loan forgiveness?

We’ll notify you when it’s time to begin your PPP loan forgiveness request, but generally you won’t be able to apply until at least eight (8) weeks after you received the funds. 

You’ll be able to start the application process through Wells Fargo Business Online or CEO. Be prepared to provide documentation for your eligible expenses.

We’ll also update this site with more detailed information on applying for loan forgiveness as it becomes available.