The SBA recently released their Paycheck Protection Program Loan Forgiveness Application. In many instances, the banking community will put this application online, but if you want to get a head start on understanding what will be required, you can review and download a copy of the forms here.
Insider read through the form and wanted to highlight a few things that were of note:
Covered Period: Is the eight-week (56-day) period of your PPP loan. The first day of the Covered Period must be the same as the PPP Loan Disbursement Date. For example, if you received your PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14.
Employees will be individually reported: There is a Worksheet that is submitted with the forgiveness application. It requires a listing of each of your employees and their compensation during the Covered Period.
Documents that Each Borrower Must Submit with their PPP Loan Forgiveness Application
Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:
- Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
- Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period:i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. - Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.
Nonpayroll: Documentation verifying existence of the obligations/services prior to February15,2020 and eligible payments from the Covered Period.
- Business mortgage interest payments: Copy of lender 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 verifying interest amounts and eligible payments.
- Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.
- Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.
Insider is assuming, like the application process, this will probably be a moving target, so we will do our best to keep everyone updated as we get closer to Forgiveness filing.
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