PPP Forgiveness Application Guide
The 11-page forgiveness application can be found at this link
It must be filled out and submitted to your lender
The application has four parts:
Loan Forgiveness Calculation Form (Pgs. 3-4)
PPP Schedule A (Pgs. 5-6)
PPP Schedule A Worksheet (Pgs. 7-10)
Borrower Demographic Info Form (Pg. 11)
Demographic Info Form is optional
It is recommended that the application be filled out in the following order:
Schedule A Worksheet - Schedule A - Loan Forgiveness Calculation Form - Borrower Demographic Info Form
Completing the Schedule A Worksheet:
Any person working 37-40+ hours per week is considered 1 FTE
Anyone working less than 37 hours per week is considered 0.5 FTE
Cash Compensation is the prorated sum of gross salary, wages, tips, commissions, paid leave, allowances over the 56-day covered period (see below)
Salary reduction column must be filled out whether you reduced wages or not
Completing the Schedule A:
Non-Cash Payroll: total amount paid for health insurance, contributions to retirement plans, and employer state and local taxes assessed on employee compensation
Completing the Loan Forgiveness Calculation Form:
Use information from Schedule A to complete fields
General Things to Know:
At least 75 percent of eligible loan forgiveness expenses must go towards payroll costs
The eight-week period of expenses that may be forgivable are the eight weeks (56 days) beginning on the day the PPP loan was disbursed or the eight weeks (56 days) beginning on the first day of the first pay period following the PPP loan disbursement
Borrowers are not punished for employees that were fired due to performance, voluntarily resigned, or willingly did not come back from a temporary furlough
Need bank statements or payroll record over duration of period, Tax information (ADP, QuickBooks, etc), IRS 941, and must document nonpayroll costs with mortgage interest payments, rent agreements, and/or utility payments
Useful Web Links:
Contact Us for More Info:
216-592-2208