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.
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.
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.
Documentation and information required for SBA PPP Forgiveness process:
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.
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:
“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:
You will need Documentation showing (at the election of the Borrower):
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.
Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.
Documents that Each Borrower Must Maintain but is Not Required to Submit:
PPP Schedule A Worksheet or its equivalent and the following:
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.