As a large portion of PPP loans have been disbursed and more funds on their way to businesses in need, SBA and Treasury have now turned their attention to the forgiveness portion of the PPP program. SBA and Treasury released the official PPP loan forgiveness application for borrowers to submit at the end of their 8 week covered period.
One of the key takeaways from the application is what documents borrowers must maintain in order to qualify for forgiveness. The application requires businesses to gather the following documents:
Payroll and Full-Time Equivalent Employees
As discussed in our article, PPP Loan Application Released: What Do Business Owners Need to Know? employers can use either the Covered Period or an Alternative Payroll Covered Period for these items.
- Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
- Tax Forms 941 and state employment reporting during the covered period
- Payment receipts, canceled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans
- Documentation to show the average number of Full-Time Equivalent employees (“FTEs”) for the covered period and selected comparison period. Typical documentation substantiating this will be payroll tax filings and state quarterly individual employee wage reporting
Dates for these documents range from February 2020 and the months of the Covered Period through one month after the end of the Covered Period
- Copy of lender amortization schedule and receipts or canceled checks verifying eligible payments or lender account statements that detail interest amounts.
- Copy of current lease agreement and receipts or canceled checks verifying eligible payments OR Lessor account statements verifying eligible payments
- Copy of invoices and receipts, canceled checks, or account statements verifying those eligible payments.
The application could clarify some outstanding issues relating to forgiveness, with Treasury and SBA promising additional guidance to follow in the near future.
Should you have questions on the forgiveness portion of your PPP loan, please reach out to your PBMares Advisor or the PBMares Quick Response Team at QuickResponseTeam@pbmares.com