Below was sourced from the SBA’s Paycheck Protection Program Loan Forgiveness Application as of 5/15/2020

· 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:

    a.       Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.

    b.       Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll 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.

    c.        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 (PPP Schedule A, lines (6) and (7)).

Below was sourced from the SBA’s Paycheck Protection Program Loan Forgiveness Application as of 5/15/2020

·  FTE: Documentation showing (at the election of the Borrower):

    a.     the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019;

    b.    the average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020 and February 29, 2020; or

    c.    in the case of a seasonal employer, the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive twelve-week period between May 1, 2019 and September 15, 2019.

·     The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period.

Below was sourced from the SBA’s Paycheck Protection Program Loan Forgiveness Application as of 5/15/2020

· Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.

    a.  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.

    b. 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.

    c.  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.

Below was sourced from the SBA’s Paycheck Protection Program Loan Forgiveness Application as of 5/15/2020

· PPP Schedule A Worksheet or its equivalent and the following:

    a.  Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary.

    b.   Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 2; specifically, that each listed employee received during any single pay period in 2019 compensation at an annualized rate of more than $100,000.

    c.   Documentation regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for reductions in work schedule.

    d.   Documentation supporting the PPP Schedule A Worksheet “FTE Reduction Safe Harbor.”

- All records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements. The Borrower must retain all such documentation in its files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request.

Update May 7, 2020:

The SBA has extended its deadline until May 14 for companies that want to pay their loan in full after reviewing the updated guidance on eligibility and economic need.

We continue to work hard to administer the Paycheck Protection Program for our customers. If you have a PPP loan, we want to be sure you see new guidance from the SBA and Treasury as you consider your loan, application or certifications. Please note for PPP loans funded, borrowers will likely be required to make the same certifications of eligibility as a condition of forgiveness.

The new guidance strengthens some of the language regarding qualifications for a Paycheck Protection Program loan. More specifically, it clarifies the “current economic uncertainty” requirement that borrowers must meet to apply for a loan. In view of the new guidance, we would like to remind you:

1. When you applied you certified that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Also, upon reviewing the new guidance (set forth below),

1. You have the opportunity to withdraw your application if you do not feel you meet this criteria.
2. If you’ve already been funded, and you believe you do not meet this criteria, you can repay your loan by May 14, 2020, and the SBA will treat that repayment as being in good faith.

Here is the additional eligibility information provided by the U.S. Department of the Treasury (Treasury) and/or the Small Business Administration for Paycheck Protection Program (PPP) loans:

• Hedge funds and private equity firms are not eligible for PPP loans, and many private equity portfolio companies are likely not eligible for PPP loans.
• Businesses owned by private companies with adequate sources of liquidity to support the business’s ongoing operations are not eligible for PPP loans.

Read the important information above before you make any decisions. Please be sure to read the FAQ shown in its entirety and, if necessary, consult with your counsel or advisor.

Update April 29, 2020: 

If you have received funding through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), you may be eligible to request loan forgiveness. We know that loan forgiveness is important to you and your business and that you have questions. Please view more details on loan forgiveness below or Find the latest information at SBA.gov and Treasury.gov.

Update April 23, 2020:

SBA PPP Loans are subject to new guidance. Learn the rules of the program.

The SBA issued a new FAQ #31 on April 23, 2020, which applies to existing borrowers, as well as those in the application process. The FAQ provides guidance on what it means to certify that: “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Please be sure to read FAQ #31 shown below in its entirety and, if necessary, consult with your counsel or advisor.