PPP Loan
Forgiveness
What You Need
to Know
June 26, 2020
Paycheck
Protection
Program
Introduction
to Our Panelists
Patrick Smith,
CPA, ABV, CGMAPartner
[email protected]
Brian Kassalen,
CPA, CFFPartner
[email protected]
James Hunt,
CPA, CGMAPartner/CEO
[email protected]
Question & Answers
• Q&A Function in Webex
➽
Session
Overview
•
Overview of the Paycheck Protection Program
(PPP)
- Funding Updated
- Release of Borrower Information
•
Changes to PPP due to
PPP Flexibility Act
•
Requirements for Loan Forgiveness
- Allowable Costs
- 8 Weeks vs 24 Weeks
- Full-Time Equivalent (FTE) Reduction
Safe Harbors
- Forgiveness Applications - Which One to Use
Links:
Important Resources
•
ACT COVID-19 Resource Center
https://www.actcpas.com/knowledge/covid-19-resource-center
•
Other Resources
https://www.sba.gov
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
Disclaimer
The Coronavirus Aid, Relief, and Economic
Security (CARES) Act was passed by Congress
and signed by the President on March 27, 2020.
The Act is comprised of approximately 880
pages. Guidance and clarifications relative
to the Act are released as new questions or
interpretations are issued. In the meantime,
we must rely on our interpretation of the
statute. We cannot provide assurance at this
time that our interpretation will ultimately be
supported by future guidance.
Paycheck Protection Program
Update
•
Application period ends June 30, 2020
•
$128.4
billion remaining as of June 20, 2020
•
PPP Flexibility Act issued in June 2020
•
U.S. Small Business Administration (SBA) and
Treasury Department announce that certain
borrower information will become public
•
Interim Final Rules issued subsequent to PPP
Flexibility Act clarifying and updating certain
PPP criteria
PPP
Summary
Approved Lending through 06.20.20
LOAN COUNT
4,666,560
NET APPROVED DOLLARS*
$514,939,789,916
LENDER COUNT
5,456
Totals reflect both rounds of PPP funding and cancellations through report date. Cancellations do include duplicative loans, loans not closed for any reason, and loans that have been paid off.
*Approvals through 06.20.20
Lender Size Lender Count Approved Loans Approved Dollars % of Amount
> $50 B in Assets 34 1,601,262 $ 188,455,623,221 37% $10 B to $50 B in Assets 89 720,109 $ 100,084,707,720 19% < $10 B in Assets 5,333 2,345,189 $ 226,399,458,974 44%
PPP
Round 2
Lender Segments through 06.20.20
* Approvals through 06.20.20
CDFI lenders and associated loans are also captured in the <$10 billion or less lender asset size.
Lender
Size
Lender Count
Round 2
Loan Count
Round 2
Net Dollars
Round 2
> $50 B in Assets
34
1,266,190
$92,310,101,401
$10 B to $50 B in Assets
89
421,339
$29,717,657,270
< $10 B in Assets
5,323
1,356,231
$70,136,585,771
Lender
Group
Lender Count
Round 2
Loan Count
Round 2
Net Dollars
Round 2
CDFIs
302
63,497
$3,037,513,424
PPP
States & Territories
States and Territories
5
State Loan Count Net Dollars
AK 10,523 $1,226,779,393 AL 63,121 $6,133,082,094 AR 41,449 $3,288,704,224 AS 156 $7,300,565 AZ 77,469 $8,520,213,630 CA 550,786 $67,151,771,059 CO 101,038 $10,270,215,384 CT 58,257 $6,628,795,320 DC 11,825 $2,119,014,772 DE 12,046 $1,472,184,589 FL 368,459 $31,243,298,708 GA 145,623 $14,163,368,242 GU 2,036 $194,161,761 HI 24,036 $2,474,132,157 IA 56,603 $5,048,619,299 ID 29,336 $2,553,027,684 IL 192,727 $22,233,685,117 IN 76,056 $9,402,888,512 KS 50,522 $4,958,578,474 KY 46,966 $5,202,162,958
State CountLoan Net Dollars
LA 70,573 $7,269,488,528 MA 108,925 $14,199,057,483 MD 77,288 $9,901,301,566 ME 26,400 $2,228,185,817 MI 116,671 $15,812,206,905 MN 94,676 $11,109,492,485 MO 88,740 $9,075,510,168 MP 440 $38,159,067 MS 44,121 $3,142,240,687 MT 22,583 $1,753,302,235 NC 116,858 $12,293,397,048 ND 19,319 $1,757,412,007 NE 41,361 $3,406,735,275 NH 23,011 $2,523,897,886 NJ 139,919 $16,972,372,250 NM 21,201 $2,218,565,298 NV 40,060 $4,068,833,898 NY 305,774 $37,764,342,889 OH 134,574 $18,210,830,774 OK 62,805 $5,410,350,463
State CountLoan Net Dollars
OR 60,060 $6,864,040,749 PA 160,452 $20,554,873,017 PR 34,538 $1,761,241,545 RI 16,620 $1,865,533,955 SC 60,871 $5,674,918,865 SD 21,752 $1,651,402,470 TN 89,170 $8,817,129,390 TX 372,077 $40,535,431,650 UT 49,343 $5,210,457,754 VA 104,963 $12,480,799,669 VI 1,620 $120,386,515 VT 11,473 $1,176,053,186 WA 96,589 $12,151,909,685 WI 82,715 $9,811,664,163 WV 16,830 $1,783,456,999 WY 12,985 $1,026,717,474 To be confirmed 169 $6,106,158 Approvals through 06/20/2020
States and Territories
5
State Loan Count Net Dollars
AK 10,523 $1,226,779,393 AL 63,121 $6,133,082,094 AR 41,449 $3,288,704,224 AS 156 $7,300,565 AZ 77,469 $8,520,213,630 CA 550,786 $67,151,771,059 CO 101,038 $10,270,215,384 CT 58,257 $6,628,795,320 DC 11,825 $2,119,014,772 DE 12,046 $1,472,184,589 FL 368,459 $31,243,298,708 GA 145,623 $14,163,368,242 GU 2,036 $194,161,761 HI 24,036 $2,474,132,157 IA 56,603 $5,048,619,299 ID 29,336 $2,553,027,684 IL 192,727 $22,233,685,117 IN 76,056 $9,402,888,512 KS 50,522 $4,958,578,474 KY 46,966 $5,202,162,958
State CountLoan Net Dollars
LA 70,573 $7,269,488,528 MA 108,925 $14,199,057,483 MD 77,288 $9,901,301,566 ME 26,400 $2,228,185,817 MI 116,671 $15,812,206,905 MN 94,676 $11,109,492,485 MO 88,740 $9,075,510,168 MP 440 $38,159,067 MS 44,121 $3,142,240,687 MT 22,583 $1,753,302,235 NC 116,858 $12,293,397,048 ND 19,319 $1,757,412,007 NE 41,361 $3,406,735,275 NH 23,011 $2,523,897,886 NJ 139,919 $16,972,372,250 NM 21,201 $2,218,565,298 NV 40,060 $4,068,833,898 NY 305,774 $37,764,342,889 OH 134,574 $18,210,830,774 OK 62,805 $5,410,350,463
State CountLoan Net Dollars
OR 60,060 $6,864,040,749 PA 160,452 $20,554,873,017 PR 34,538 $1,761,241,545 RI 16,620 $1,865,533,955 SC 60,871 $5,674,918,865 SD 21,752 $1,651,402,470 TN 89,170 $8,817,129,390 TX 372,077 $40,535,431,650 UT 49,343 $5,210,457,754 VA 104,963 $12,480,799,669 VI 1,620 $120,386,515 VT 11,473 $1,176,053,186 WA 96,589 $12,151,909,685 WI 82,715 $9,811,664,163 WV 16,830 $1,783,456,999 WY 12,985 $1,026,717,474 To be confirmed 169 $6,106,158 Approvals through 06/20/2020
States and Territories
5
State Loan Count Net Dollars
AK 10,523 $1,226,779,393 AL 63,121 $6,133,082,094 AR 41,449 $3,288,704,224 AS 156 $7,300,565 AZ 77,469 $8,520,213,630 CA 550,786 $67,151,771,059 CO 101,038 $10,270,215,384 CT 58,257 $6,628,795,320 DC 11,825 $2,119,014,772 DE 12,046 $1,472,184,589 FL 368,459 $31,243,298,708 GA 145,623 $14,163,368,242 GU 2,036 $194,161,761 HI 24,036 $2,474,132,157 IA 56,603 $5,048,619,299 ID 29,336 $2,553,027,684 IL 192,727 $22,233,685,117 IN 76,056 $9,402,888,512 KS 50,522 $4,958,578,474 KY 46,966 $5,202,162,958
State CountLoan Net Dollars
LA 70,573 $7,269,488,528 MA 108,925 $14,199,057,483 MD 77,288 $9,901,301,566 ME 26,400 $2,228,185,817 MI 116,671 $15,812,206,905 MN 94,676 $11,109,492,485 MO 88,740 $9,075,510,168 MP 440 $38,159,067 MS 44,121 $3,142,240,687 MT 22,583 $1,753,302,235 NC 116,858 $12,293,397,048 ND 19,319 $1,757,412,007 NE 41,361 $3,406,735,275 NH 23,011 $2,523,897,886 NJ 139,919 $16,972,372,250 NM 21,201 $2,218,565,298 NV 40,060 $4,068,833,898 NY 305,774 $37,764,342,889 OH 134,574 $18,210,830,774 OK 62,805 $5,410,350,463
State CountLoan Net Dollars
OR 60,060 $6,864,040,749 PA 160,452 $20,554,873,017 PR 34,538 $1,761,241,545 RI 16,620 $1,865,533,955 SC 60,871 $5,674,918,865 SD 21,752 $1,651,402,470 TN 89,170 $8,817,129,390 TX 372,077 $40,535,431,650 UT 49,343 $5,210,457,754 VA 104,963 $12,480,799,669 VI 1,620 $120,386,515 VT 11,473 $1,176,053,186 WA 96,589 $12,151,909,685 WI 82,715 $9,811,664,163 WV 16,830 $1,783,456,999 WY 12,985 $1,026,717,474 To be confirmed 169 $6,106,158 Approvals through 06/20/2020 * Approvals through 06.20.20
PPP
Loan Size
through 06.20.20
•
Overall average loan size is $110K
Loan Size
6
Loan Size
Count
Loan
Net Dollars
Count
% of
Amount
% of
$50K and Under
3,064,336
$55,987,179,541
65.7%
10.9%
>$50K - $100K
662,648
$47,193,767,606
14.2%
9.2%
>$100K - $150K
287,175
$35,157,045,956
6.2%
6.8%
>$150K - $350K
372,208
$83,607,998,720
8.0%
16.2%
>$350K - $1M
197,919 $112,593,061,665
4.2%
21.9%
>$1M - $2M
52,717
$73,053,341,485
1.1%
14.2%
>$2M - $5M
24,741
$73,546,628,249
0.5%
14.3%
>$5M
4,816
$33,800,766,694
0.1%
6.6%
Approvals through 06/20/2020* Overall average loan size is: $110K.
Top PPP
Lenders
through 06.20.20
* Approvals through 06.20.20
Top PPP Lenders
7
Approvals through 06/20/2020
Rank
Lender Name
Loan Count
Net Dollars
Average Loan
Size
% of Total
Authority
1
JPMorgan Chase Bank 262,799 $28,798,003,966 $109,582 4.4%2
Bank of America 333,020 $25,171,085,993 $75,584 3.8%3
PNC Bank 72,822 $13,055,480,671 $179,279 2.0%4
Truist Bank 75,759 $12,980,900,084 $171,345 2.0%5
Wells Fargo Bank 178,533 $10,342,511,095 $57,931 1.6%6
TD Bank 80,413 $8,401,331,673 $104,477 1.3%7
KeyBank 39,820 $8,064,532,480 $202,525 1.2%8
U.S. Bank 95,969 $7,261,899,367 $75,669 1.1%9
Zions Bank 44,698 $6,863,405,854 $153,551 1.0%10
M&T Bank 34,746 $6,785,924,329 $195,301 1.0%11
Huntington Bank 35,534 $6,472,560,010 $182,151 1.0%12
Fifth Third Bank 36,813 $5,406,605,847 $146,867 0.8%13
Citizens Bank 49,271 $4,991,020,463 $101,297 0.8%14
BMO Harris Bank 20,860 $4,775,070,376 $228,910 0.7%15
Cross River Bank 106,575 $4,695,905,324 $44,062 0.7%PPP
Industry by NAICS Sector
through 06.20.20
North American Industry Classification System
* Approvals through 06.20.20
Industry by NAICS Sector
8 Approvals through 06/20/2020
NAICS Sector Description CountLoan Net Dollars Amount% of
Health Care and Social Assistance 487,386 $66,582,598,125 12.93% Professional, Scientific, and Technical Services 608,025 $65,620,738,481 12.74% Construction 446,670 $63,921,963,658 12.41% Manufacturing 223,452 $53,620,614,368 10.41% Accommodation and Food Services 354,085 $41,498,140,735 8.06% Retail Trade 432,933 $39,907,699,244 7.75% Other Services (except Public Administration) 498,756 $30,513,851,152 5.93% Wholesale Trade 161,883 $27,514,653,734 5.34% Administrative and Support and Waste Management and Remediation Services 230,321 $26,167,415,058 5.08% Transportation and Warehousing 171,051 $16,605,493,181 3.22% Real Estate and Rental and Leasing 232,660 $15,329,408,006 2.98% Finance and Insurance 161,053 $12,034,233,705 2.34% Educational Services 76,832 $11,828,903,631 2.30% Unclassified Establishments 222,226 $9,916,122,340 1.93% Information 65,837 $9,134,891,250 1.77% Arts, Entertainment, and Recreation 110,809 $7,800,534,098 1.51% Agriculture, Forestry, Fishing and Hunting 132,564 $7,726,040,628 1.50% Mining 20,990 $4,472,952,752 0.87% Public Administration 12,835 $1,714,610,439 0.33% Management of Companies and Enterprises 8,571 $1,569,618,147 0.30% Utilities 7,621 $1,459,307,183 0.28%
PPP
Disclosure of Borrower Information
•
Borrower information will be disclosed in ranges
•
Under $150,000 in PPP loans – data only
(no names will be disclosed)
•
Over $150,000 in PPP loans – data and names
will be disclosed in ranges
- $150,000 to $350,000
- $350,000 to $1,000,000
- $1,000,000 to $2,000,000
- $2,000,000 to $5,000,000
- $5,000,000 to $10,000,000
Key Highlights
of the PPP
•
Loan proceeds up to $10 million
•
To the extent that loan proceeds are used for
qualifying uses, principal will be forgiven
•
Loan principal forgiven will not constitute
taxable income
•
Forgivable expenses currently will not be
deductible on taxpayer’s tax return
•
Loans bear interest at 1.0%
•
Payments under PPP loans will be deferred
•
Loans mature in 5 years
IMPORTANT!
Borrower Certification
Economic Uncertainty
What is This?
“Current economic uncertainty makes
this loan request necessary to support the
ongoing operations of the Applicant.”
"I further certify"…statement from the loan
application
- information provided is true and accurate
- knowingly false statement punishable by
imprisonment or fine
IMPORTANT!
Borrower Certification
Had to re-certify that the PPP loan was
necessary to support the ongoing
operations of the business
•
What does this mean?
•
How do I know?
•
How can I protect myself and my business?
•
Can I still return the funds if I don’t think
PPP
Loan Forgiveness
•
PPP Loan Forgiveness Application
instructions revised by SBA 06.16.20
- NEW EZ Version & Regular Version
- Borrowers need to meet 1 of 3 criteria
for EZ Version
•
Requires
representations & certifications of borrower
•
Both “Covered Period” & “Alternative Payroll
Covered Period”
still allowed
•
Instructions & Guidelines
PPP
Loan Forgiveness
•
Forgiveness is based on accumulated
expenditures during the
borrower’s covered period
following receipt of loan proceeds for:
- Payroll costs during
Covered Period
or
Alternative Payroll
Covered Period
- Utility payments
- Rent expenses
- Interest on mortgage debt
•
Forgiveness cannot exceed the principal amount
•
At least 60% of forgiveness
MUST
be used for
covered payroll costs
Payroll
Costs
Cash Compensation Capped at $100K
•
Gross salary/wages
•
Tips, commissions, paid leave
•
Paid leave EXCLUDES leave covered by
Families First Coronavirus Response Act (FFCRA)
•
Cap based on pro-rata of weeks in covered period
•
Payroll costs include costs incurred as well as paid
during the covered period
Non-Cash Compensation Costs Add-Ons
•
Employer contributions to defined benefit or
defined contribution plans
•
Employer contributions for health insurance
•
Payment of state & local taxes assessed on
compensation of employees
Nonpayroll
Costs
•
Business Mortgage Interest Payments
mortgage payments during Covered Period
on real or personal property before 02.15.20
not including prepayments
•
Business Rent or Lease Payments
rent or lease payments on real or personal property
during Covered Period prior to 02.15.20
•
Business Utility Payments
business utility payments during Covered Period
service began before 02.15.20
gas, water, transportation, telephone,
internet, electricity
Uncertainty
Related to Certain Costs
Uncertainty Exists Related to Certain Costs:
•
Are 2019 safe-harbor or profit sharing costs allowable?
•
Are 2020 safe-harbor or profit sharing costs “incurred”
through covered period allowable?
•
Transportation Utility - what is included there?
•
Do health care costs include payments for dental
and vision insurance?
Forgiveness
Reduced if…
Full-Time Equivalent Reduced Workforce
During Covered Period Following Loan
Compared to One of Two Benchmark Periods:
•
Period 1: 02.15.19 to 06.30.19
•
Period 2: 01.01.20 to 02.29.20
•
Special guidelines for seasonal employers
•
Corrective action (rehire) prior to certain dates
can mitigate reduced forgiveness
Forgiveness
Reduced if…
Compensation Provision Reduction of Salary/Wages
For Those Making Less than $100K by 25% or More
•
Based on average annual salary or hourly wage
•
Compared annual salary/wage during covered
period to Q1 2020
•
Employees who fall below 75%
evaluate safe harbor exception
•
If safe harbor not met,
Documentation
Requirements
Borrowers Must SUBMIT Certain Documents with
Forgiveness Application for Both EZ & Regular
• Payroll & Related Costs
- Bank account statements or payroll reports
for the covered period
- IRS Forms 941 or other unemployment reports
- Canceled checks, account statements, or payment
receipts for employer contributions to health
Documentation
Requirements
EZ
EZ Forgiveness Application, Borrowers Required to
SUBMIT Accompanying Documents
- If borrower checked ONLY the second box on
page 1 of “EZ” instructions – the average number
of FTEs on payroll employed by the
borrower on January 1, 2020, and at the
end of the covered period.
Documentation
Requirements
Regular Forgiveness Application, Borrowers Required
to SUBMIT Accompanying Documents
• FTE Calculation
- Average number of FTEs on payroll per month for
Periods 1 & 2 or other period allowed for
seasonal employer
- FTE calculation based on 40 hour work week
- Simplified approach allows for FTE calculation:
> 40 hour worker (1 FTE)
> Less than 40 hour worker (.5 FTE)
Documentation
Requirements
EZ & REG
BOTH Forgiveness Applications, Borrowers Required
to SUBMIT Accompanying Documents
• Nonpayroll Costs
- Documentation verifying existence of the
obligations/services prior to February 15, 2020, AND
eligible payments made during the covered period
- Canceled checks, account statements, lease agreements,
invoices, etc.
Documentation
Requirements
REG
A borrower is required to MAINTAIN, but not submit,
certain documents for either the “EZ” or “Regular”
Application
• Regular application requirements
PPP Schedule A Worksheet or equivalent and:
- Documentation supporting Table 1 and Table 2
employees, including potential salary/wage reduction
calculation for Table 1 employees
• Documentation regarding any employee job offers
and refusals, firings for cause, voluntary resignations,
and written requests by employees for reduced
work hours
Documentation
Requirements
EZ
A borrower is required to MAINTAIN, but not submit,
certain documents for either the “EZ” or “Regular”
Application
• EZ application requirements
- Documentation certifying wages were not reduced by
more than 25% - must include employee listing and wages
paid during period of January 1, 2020, to March 31, 2020,
AND wages paid during covered period
- Documentation regarding employee refusals to return
to work, restore normal hours, voluntary resignations,
firings for cause, etc.
- Documentation showing that the borrower did not reduce
number of employees or average paid hours between
Applying
for Loan Forgiveness
• When should a borrower apply for forgiveness?
• Which loan forgiveness application should a
borrower use?
• When will lenders be ready to start accepting
forgiveness applications?
• Complete appropriate forgiveness application
- Lender has 60 days to make a decision
- SBA has 90 days after receipt of decision from
Lender to review loan forgiveness and submit
payment to lender
• Borrower must maintain required documentation
for six years after the date the loan is forgiven
or repaid in full
PPP Loan Forgiveness
Regular Form
Paycheck Protection Program
Loan Forgiveness Application Revised June 16, 2020 OMB Control Number 3245-0407 Expiration Date: 10/31/2020
PPP Loan Forgiveness Calculation Form
Business Legal Name (“Borrower”) DBA or Tradename, if applicable Business Address Business TIN (EIN, SSN) Business Phone
( )
-Primary Contact E-mail Address
SBA PPP Loan Number: Lender PPP Loan Number: PPP Loan Amount: PPP Loan Disbursement Date:
Employees at Time of Loan Application: ___________ Employees at Time of Forgiveness Application: EIDL Advance Amount: EIDL Application Number:
Payroll Schedule: The frequency with which payroll is paid to employees is:
☐Weekly ☐ Biweekly (every other week) ☐ Twice a month ☐ Monthly ☐ Other
Covered Period: to
Alternative Payroll Covered Period, if applicable: to
If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million, check here: ☐
Forgiveness Amount Calculation:
Payroll and Nonpayroll Costs
Line 1. Payroll Costs (enter the amount from PPP Schedule A, line 10): Line 2. Business Mortgage Interest Payments:
Line 3. Business Rent or Lease Payments: Line 4. Business Utility Payments:
Adjustments for Full-Time Equivalency (FTE) and Salary/Hourly Wage Reductions
Line 5. Total Salary/Hourly Wage Reduction (enter the amount from PPP Schedule A, line3): Line 6. Add the amounts on lines 1, 2, 3, and 4, then subtract the amount entered in line5: Line 7. FTE Reduction Quotient (enter the number from PPP Schedule A, line13): Potential Forgiveness Amounts
Line 8. Modified Total (multiply line 6 by line 7): Line 9. PPP Loan Amount:
Line 10. Payroll Cost 60% Requirement (divide line 1 by 0.60): Forgiveness Amount
Line 11. Forgiveness Amount (enter the smallest of lines 8, 9, and 10):
SBA Form 3508 (06/20) Page 1
33
PPP Loan Forgiveness
Regular Form
Business Legal Name (“Borrower”) DBA or Tradename, if applicable Business Address Business TIN (EIN, SSN) Business Phone
( )
-Primary Contact E-mail Address
SBA PPP Loan Number: Lender PPP Loan Number: PPP Loan Amount: PPP Loan Disbursement Date:
Employees at Time of Loan Application: ___________ Employees at Time of Forgiveness Application: EIDL Advance Amount: EIDL Application Number:
Payroll Schedule: The frequency with which payroll is paid to employees is:
☐Weekly ☐ Biweekly (every other week) ☐ Twice a month ☐ Monthly ☐ Other
Covered Period: to
Alternative Payroll Covered Period, if applicable: to
If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million, check here: ☐
Forgiveness Amount Calculation:
Payroll and Nonpayroll Costs
Line 1. Payroll Costs (enter the amount from PPP Schedule A, line 10): Line 2. Business Mortgage Interest Payments:
Line 3. Business Rent or Lease Payments: Line 4. Business Utility Payments:
Adjustments for Full-Time Equivalency (FTE) and Salary/Hourly Wage Reductions
Line 5. Total Salary/Hourly Wage Reduction (enter the amount from PPP Schedule A, line3): Line 6. Add the amounts on lines 1, 2, 3, and 4, then subtract the amount entered in line5: Line 7. FTE Reduction Quotient (enter the number from PPP Schedule A, line13): Potential Forgiveness Amounts
Line 8. Modified Total (multiply line 6 by line 7): Line 9. PPP Loan Amount:
Line 10. Payroll Cost 60% Requirement (divide line 1 by 0.60): Forgiveness Amount
Line 11. Forgiveness Amount (enter the smallest of lines 8, 9, and 10):
SBA Form 3508 (06/20) Page 1
PPP Loan Forgiveness
Regular Form
___________________
Paycheck Protection Program OMB Control Number 3245-0407
Loan Forgiveness Application Revised June 16, 2020 Expiration Date: 10/31/2020
PPP Schedule A
PPP Schedule A Worksheet, Table 1 Totals
Line 1. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: Line 2. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1:
Line 3. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1: If the average annual salary or hourly wage for each employee listed on the PPP
Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Covered Period was at least 75% of such employee’s average annual salary or hourly wage between January 1, 2020 and March 31, 2020, check here ☐ and enter 0 on line 3. PPP Schedule A Worksheet, Table 2 Totals
Line 4. Enter Cash Compensation (Box 4) from PPP Schedule A Worksheet, Table 2: Line 5. Enter Average FTE (Box 5) from PPP Schedule A Worksheet, Table 2:
Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period Line 6. Total amount paid or incurred by Borrower for employer contributions for employee healthinsurance: Line 7. Total amount paid or incurred by Borrower for employer contributions to employee retirementplans: Line 8. Total amount paid or incurred by Borrower for employer state and local taxes assessed on employee
compensation: Compensation to Owners
Line 9. Total amount paid to owner-employees/self-employed individual/general partners: This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. If there is more than one individual included, attach a separate table that lists the names of and payments to each.
Total Payroll Costs
Line 10. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): Full-Time Equivalency (FTE) Reduction Calculation
If you satisfy any of the following three criteria, check the appropriate box, skip lines 11 and 12, and enter 1.0 on line 13; otherwise, complete lines 11, 12, and 13:
No reduction in employees or average paid hours: If you have not reduced the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period, check here ☐.
FTE Reduction Safe Harbor 1: If you were unable to operate between February 15, 2020, and the end of 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 for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19, check here ☐.
FTE Reduction Safe Harbor 2: If you satisfy FTE Reduction Safe Harbor 2 (see PPP Schedule A Worksheet), check here ☐. Line 11. Average FTE during the Borrower’s chosen reference period:
Line 12. Total Average FTE (add lines 2 and 5):
Line 13. FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if any of the above criteria aremet:
SBA Form 3508 (06/20) Page 3
35
PPP Loan Forgiveness
Regular Form
___________________ PPP Schedule A Worksheet, Table 1 Totals
Line 1. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: Line 2. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1:
Line 3. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1: If the average annual salary or hourly wage for each employee listed on the PPP
Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Covered Period was at least 75% of such employee’s average annual salary or hourly wage between January 1, 2020 and March 31, 2020, check here ☐ and enter 0 on line 3. PPP Schedule A Worksheet, Table 2 Totals
Line 4. Enter Cash Compensation (Box 4) from PPP Schedule A Worksheet, Table 2: Line 5. Enter Average FTE (Box 5) from PPP Schedule A Worksheet, Table 2:
Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period Line 6. Total amount paid or incurred by Borrower for employer contributions for employee healthinsurance: Line 7. Total amount paid or incurred by Borrower for employer contributions to employee retirementplans: Line 8. Total amount paid or incurred by Borrower for employer state and local taxes assessed on employee
compensation: Compensation to Owners
Line 9. Total amount paid to owner-employees/self-employed individual/general partners: This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. If there is more than one individual included, attach a separate table that lists the names of and payments to each.
Total Payroll Costs
Line 10. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): Full-Time Equivalency (FTE) Reduction Calculation
If you satisfy any of the following three criteria, check the appropriate box, skip lines 11 and 12, and enter 1.0 on line 13; otherwise, complete lines 11, 12, and 13:
No reduction in employees or average paid hours: If you have not reduced the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period, check here ☐.
FTE Reduction Safe Harbor 1: If you were unable to operate between February 15, 2020, and the end of 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 for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19, check here ☐.
FTE Reduction Safe Harbor 2: If you satisfy FTE Reduction Safe Harbor 2 (see PPP Schedule A Worksheet), check here ☐. Line 11. Average FTE during the Borrower’s chosen reference period:
Line 12. Total Average FTE (add lines 2 and 5):
Line 13. FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if any of the above criteria aremet:
SBA Form 3508 (06/20) Page 3
36
PPP Loan Forgiveness
Regular Form
___________________ PPP Schedule A Worksheet, Table 1 Totals
Line 1. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: Line 2. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1:
Line 3. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1: If the average annual salary or hourly wage for each employee listed on the PPP
Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Covered Period was at least 75% of such employee’s average annual salary or hourly wage between January 1, 2020 and March 31, 2020, check here ☐ and enter 0 on line 3. PPP Schedule A Worksheet, Table 2 Totals
Line 4. Enter Cash Compensation (Box 4) from PPP Schedule A Worksheet, Table 2: Line 5. Enter Average FTE (Box 5) from PPP Schedule A Worksheet, Table 2:
Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period Line 6. Total amount paid or incurred by Borrower for employer contributions for employee healthinsurance: Line 7. Total amount paid or incurred by Borrower for employer contributions to employee retirementplans: Line 8. Total amount paid or incurred by Borrower for employer state and local taxes assessed on employee
compensation: Compensation to Owners
Line 9. Total amount paid to owner-employees/self-employed individual/general partners: This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. If there is more than one individual included, attach a separate table that lists the names of and payments to each.
Total Payroll Costs
Line 10. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): Full-Time Equivalency (FTE) Reduction Calculation
If you satisfy any of the following three criteria, check the appropriate box, skip lines 11 and 12, and enter 1.0 on line 13; otherwise, complete lines 11, 12, and 13:
No reduction in employees or average paid hours: If you have not reduced the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period, check here ☐.
FTE Reduction Safe Harbor 1: If you were unable to operate between February 15, 2020, and the end of 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 for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19, check here ☐.
FTE Reduction Safe Harbor 2: If you satisfy FTE Reduction Safe Harbor 2 (see PPP Schedule A Worksheet), check here ☐. Line 11. Average FTE during the Borrower’s chosen reference period:
Line 12. Total Average FTE (add lines 2 and 5):
Line 13. FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if any of the above criteria aremet:
SBA Form 3508 (06/20) Page 3
37
PPP Loan Forgiveness
Regular Form
___________________ PPP Schedule A Worksheet, Table 1 Totals
Line 1. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: Line 2. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1:
Line 3. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1: If the average annual salary or hourly wage for each employee listed on the PPP
Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Covered Period was at least 75% of such employee’s average annual salary or hourly wage between January 1, 2020 and March 31, 2020, check here ☐ and enter 0 on line 3. PPP Schedule A Worksheet, Table 2 Totals
Line 4. Enter Cash Compensation (Box 4) from PPP Schedule A Worksheet, Table 2: Line 5. Enter Average FTE (Box 5) from PPP Schedule A Worksheet, Table 2:
Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period Line 6. Total amount paid or incurred by Borrower for employer contributions for employee healthinsurance: Line 7. Total amount paid or incurred by Borrower for employer contributions to employee retirementplans: Line 8. Total amount paid or incurred by Borrower for employer state and local taxes assessed on employee
compensation: Compensation to Owners
Line 9. Total amount paid to owner-employees/self-employed individual/general partners: This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. If there is more than one individual included, attach a separate table that lists the names of and payments to each.
Total Payroll Costs
Line 10. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): Full-Time Equivalency (FTE) Reduction Calculation
If you satisfy any of the following three criteria, check the appropriate box, skip lines 11 and 12, and enter 1.0 on line 13; otherwise, complete lines 11, 12, and 13:
No reduction in employees or average paid hours: If you have not reduced the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period, check here ☐.
FTE Reduction Safe Harbor 1: If you were unable to operate between February 15, 2020, and the end of 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 for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19, check here ☐.
FTE Reduction Safe Harbor 2: If you satisfy FTE Reduction Safe Harbor 2 (see PPP Schedule A Worksheet), check here ☐. Line 11. Average FTE during the Borrower’s chosen reference period:
Line 12. Total Average FTE (add lines 2 and 5):
Line 13. FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if any of the above criteria aremet:
SBA Form 3508 (06/20) Page 3
PPP Loan Forgiveness
EZ Form
Paycheck Protection Program
OMB Control No. 3245-0407PPP Loan Forgiveness Application Form 3508EZ Expiration date: 10/31/2020
SBA Form 3508EZ (06/20) Page 1
Business Legal Name (“Borrower”) DBA or Tradename, if applicable Business Address Business TIN (EIN, SSN) Business Phone
( ) -
Primary Contact E-mail Address
SBA PPP Loan Number: ________________________ Lender PPP Loan Number: __________________________
PPP Loan Amount: _____________________________ PPPLoan Disbursement Date: ________________________
Employees at Time of Loan Application: ___________ Employees at Time of Forgiveness Application: __________ EIDL Advance Amount: ________________________ EIDL Application Number: __________________________
Payroll Schedule: The frequency with which payroll is paid to employees is:
☐Weekly ☐ Biweekly (every other week) ☐ Twice a month ☐ Monthly ☐ Other _____________
Covered Period: ________________________ to ________________________
Alternative Payroll Covered Period, if applicable: ________________________ to _______________________
If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million, check here: ☐
Forgiveness Amount Calculation:
Payroll and Nonpayroll Costs
Line 1. Payroll Costs: _____________________
Line 2. Business Mortgage Interest Payments: _____________________
Line 3. Business Rent or Lease Payments: _____________________
Line 4. Business Utility Payments: _____________________
Potential Forgiveness Amounts
Line 5. Add the amounts on lines 1, 2, 3, and 4: _____________________
Line 6. PPP Loan Amount: _____________________
Line 7. Payroll Cost 60% Requirement (divide Line 1 by 0.60): _____________________
Forgiveness Amount
39
PPP Loan Forgiveness
EZ Form
SBA Form 3508EZ (06/20) Page 1
Business Address Business TIN (EIN, SSN) Business Phone
( ) -
Primary Contact E-mail Address
SBA PPP Loan Number: ________________________ Lender PPP Loan Number: __________________________
PPP Loan Amount: _____________________________ PPPLoan Disbursement Date: ________________________
Employees at Time of Loan Application: ___________ Employees at Time of Forgiveness Application: __________ EIDL Advance Amount: ________________________ EIDL Application Number: __________________________
Payroll Schedule: The frequency with which payroll is paid to employees is:
☐Weekly ☐ Biweekly (every other week) ☐ Twice a month ☐ Monthly ☐ Other _____________
Covered Period: ________________________ to ________________________
Alternative Payroll Covered Period, if applicable: ________________________ to _______________________
If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million, check here: ☐
Forgiveness Amount Calculation:
Payroll and Nonpayroll Costs
Line 1. Payroll Costs: _____________________
Line 2. Business Mortgage Interest Payments: _____________________
Line 3. Business Rent or Lease Payments: _____________________
Line 4. Business Utility Payments: _____________________
Potential Forgiveness Amounts
Line 5. Add the amounts on lines 1, 2, 3, and 4: _____________________
Line 6. PPP Loan Amount: _____________________
Line 7. Payroll Cost 60% Requirement (divide Line 1 by 0.60): _____________________
Forgiveness Amount
