SBA Loans

PPP Loan Forgiveness

As you prepare to apply for loan forgiveness, please begin gathering the following documents:

i. Bank statements or payroll reports documenting the amount of cash compensation paid to employees.

ii. Tax forms that overlap with the Covered Period or the Alternative Payroll Covered Period (payroll tax filings using IRS Form 941, and State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported).

iii. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans. 

iv. Documentation showing:

  • The average number of full time equivalency (FTE’s) on payroll per month between February 15, 2019 and June 30, 2019.
  • The average number of full time equivalency (FTE’s) on payroll per month between January 1, 2020 and February 29, 2020; or
  • If you are a seasonal employer, the average number of full time equivalency (FTE’s) on payroll per month between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or a consecutive twelve-week period between May 1 and September 15, 2019.

v. For business mortgage interest payments, a copy of your lender’s amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period.

vi. For business rent or lease payments, a copy of your current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period.

vii. For business utility payments, a copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.


PPP Loan Forgiveness Applications

There are three different applications you can fill out for PPP Loan Forgiveness: The PPP Forgiveness Application, the 3508EZ Form, and the 3508S Form.

If you can check at least one of the three boxes in the chart below, you can apply for forgiveness of your Paycheck Protection Program (PPP) loan using the SBA Form 3508EZ. 

If your PPP loan is for less than $50,000, you can fill out the 3508S Form.

If the information below does not apply and your PPP loan is for more than $50,000, you can fill out the PPP Forgiveness Application below.

PPP FORGIVENESS APPLICATION

PPP LOAN APPLICATION INSTRUCTIONS

YesThe Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
Yes

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details.

Yes

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established 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 the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

Fill Out 3508EZ Form

3508EZ Form Instructions


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