SBA PPP Forgiveness Portal Instructions

Payroll

2019 & 1^st Quarter 2020

Employee level payroll information covering 2019 and the 1^st 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 1^st Quarter 2020.

Covered Period

Documentation verifying the eligible cash compensation and non-cash benefit payments from the 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 week 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.
4. Covered operations expenditures: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.
5. Covered property damage costs: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments, and documentation that the costs were related to property damage and vandalism or looting due to public disturbances that occurred during 2020 and such costs were not covered by insurance or other compensation.
6. Covered supplier costs: Copy of contracts, orders, or purchase orders in effect at any time before the Covered Period (except for perishable goods), copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.
7. Covered worker protection expenditures: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments, and documentation that the expenditures were used by the Borrower to comply with applicable COVID-19 guidance during the Covered Period.