SBA PPP Forgiveness Portal Instructions

The digital portal where you can request forgiveness of your loan under the guidelines communicated by the Treasury Dept. and the Small Business Administration (SBA) is now available1.

 

Apply for Forgiveness

 

This instruction page will walk you through the steps required for the forgiveness process:                

Remember, make sure you have these instructions handy at all times. You will need to be prepared to enter information from different time periods and upload supporting documents. You will be able to enter information and save your application and come back to continue to the process.

Portal Steps

1.   General Info: Basic information that you must complete and verify before moving on to the next step. This information will affect ranges and amounts needed for the application process.

2.   Worksheets: (a) Forgiveness Payroll, (b) FTE Base Calculation and (c) Wage Reduction Worksheets are to help you calculate the information needed for the Schedule A. For your convenience, all the calculations and rules are embedded into the system and will provide the required totals and line items for Schedule A and the Forgiveness Calculation.

3.   Schedule A: Completed by the worksheets, Schedule A only requires input of Non-Cash Compensation Payroll for line items 6-8.

4.   Forgiveness Calculation: The final part of the application will be complete, and Forgiveness will be calculated at this step.

5.   Capture Documents: Supporting evidence and documentation is uploaded in this section so your Forgiveness Application file is complete and organized.

6.   Certify, Sign & Submit: Here you can review and sign certifications and submit the completed application.

Get Prepared

Documentation and information required for SBA PPP Forgiveness process:

Payroll

2019 & 1st Quarter 2020

Employee level payroll information covering 2019 and the 1st Quarter of 2020 (for employees who made less than $100k in 2019) detailing eligible cash compensation.

  1. Be ready to upload corresponding supporting information for 2019 and 1st Quarter 2020 which includes.

Covered Period

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:

  1. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
  2. 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:
    1. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
    2. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
  3. 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)).

FTE Reduction Test

“FTE” or Full-time Equivalent will be used below referring to the number of employees that work an equivalent 40 hours per week.

If you have full-time salaried employees that work 40 hours per week they will be counted as 1 FTE for the Forgiveness process. If you have part-time or hourly workers that work less than 40 hours per week, you will have the option to calculate FTE in the following two ways:

  1. Any employee that works less than 40 hours per week can be treated as 0.5 FTE.
  2. Divide the total number of hours worked by these employees and divide their Pay Cycle Period based on 40 hours per week to calculate the actual FTE equivalent.

You will need Documentation showing (at the election of the Borrower):

  1. The average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019, and June 30, 2019;
  2. The average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020, and February 29, 2020; or
  3. 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.

Supporting 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.

Non-Payroll

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

  1. 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.
  2. 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.
  3. 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.

Documents that Each Borrower Must Maintain but is Not Required to Submit:

PPP Schedule A Worksheet or its equivalent and the following:

  1. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary.
  2. 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.
  3. Documentation regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for reductions in work schedule.
  4. 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.