Recommended Supporting Documents
The information contained in this page is based on laws, rules, regulations, and related guidance with respect to they Paycheck Protections Program (PPP) including guidance issued by the U.S. Small Businesses Administration (SBA) on August 11, 2020. We will periodically update this information, so please check back often and consider bookmarking this page. In the event of any discrepancies between the information on this site and the SBA's site, please follow offical SBA guidance.
Documents submitted should include all periods overlapping the 24-week covered period (or 8-weeks if selected).
While the bank may have some of these documents on file, the SBA requires you, as the borrower, to supply the documents to validate your expenses.
Notes on payroll documents:
Payroll Reports should include all periods overlapping the 24-week covered period or (8-weeks if selected), and show figures for each of the following eligible costs;
- Cash compensation;
- Employer contributions for employee health insurance;
- Employer contributions to employee retirement plans; and
- Employer state and local taxes assessed on employee compensations.
It is preferred if the report shows separate cash compensation figures for:
- Employees who received compensation at an annualized rate <=$100,000 for all pay periods in 2019; and
- Employees who received compensation at an annualized rate >$100,000 for all pay periods in 2019. [For Form 3508EZ, there is no need to separate employees by 2019 compensation level.]
If you have completed the PPP Schedule A Worksheet, we suggest you provide it when you submit your application. It can be found on Page 4 of Form 3508.
This detail helps us validate the line item figures shown on the forgiveness application forms.
- Eligible cash compensation includes; gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave) and allowances for dismissal or separation. This may include bonus, hazard pay, and salaries to furloughed employees.
- Do not include compensation in excess of an annual salary of $100,000 annualized, as prorated for the covered period. Therefore, the payroll schedule should show no employee with more than $46,154 in compensation if selecting the 24-week period (or $15,385 for the 8-week period, if eligible and selected.)
- Do not include payments to independent contractors, or compensation to employees whose principal place of residence is outside of the US; or qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act.
Compensation to owners:
- Owner-employees, self-employed individuals and partners are eligible for loan forgiveness on the basis of their 2019 compensation. The maximum amount of loan forgiveness you can claim as compensation per individual owner of partner is $20,833 (which is 2.5 months equivalent of $100,000 per year). Note that if you select the 8 week covered period, the maximum claim is set at $15,385 (or 8 weeks equivalent of $100,000).
- Self-employed Schedule C (or Schedule F) filers. If you did not submit 2019 IRS Form 1040 Schedule C (or F) when you initially applied for the PPP loan, include it with your forgiveness application.
- General Partners. If you are a partnership and did not submit 2019 IRS Form 1065 K-1s when you initially applied for the PPP loan, include it with the partnership's forgiveness application.
Note on full-time equivalency (FTE):
FTE counts both full-time (FT) and part- (PT) employees. A FT employee is counted as 1.0 FTE, and a PT employee is counted by average number of hours per week divided by 40. For example, a PT employee working 32 hours would count as 0.8 FTE. The SBA also offers a simplified method that assigns all PT employees as 0.5, if that is preferable.
Additional information on PPP loan forgiveness:
More information on SBA PPP loan forgiveness can be found on the SBA site. Instructions for PPP Loan Forgiveness Application Form 3508 and Form 3508EZ, including details on required documents, can be found on the following pages:
- SBA PPP Loan Forgiveness Application Form 3508 and Instructions
- SBA PPP Loan Forgiveness Application Form 3508EZ and Instructions