Small Business Assistance - Preparation
Get Prepared
Learn about what you should consider prior to applying for forgiveness and the documentation you may need to prepare.
Small Business Assistance - Preparation
Learn about what you should consider prior to applying for forgiveness and the documentation you may need to prepare.
On June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act (the “Flexibility Act”), which amended the CARES Act and modified the forgiveness provisions for Paycheck Protection Program (“PPP”) loans. Highlights of the Flexibility Act are included below; however, we encourage you to review the full Flexibility Act.
The Flexibility Act:
Reduced percentage of loan proceeds required to be used for payroll costs to 60% and increased the percentage for non-payroll costs to 40%.
Extended the loan deferment period.
Extended the loan repayment date for loans originated on or after June 5, 2020.
Extended the time period to use the loan funds.
Deferred employer’s payroll taxes for Social Security.
Provided additional Safe Harbor employee exemptions.
The “Covered Period” begins the day you received your PPP loan proceeds. For borrowers that received their PPP loans prior to June 5, 2020, they can elect either an 8-week period or a 24-week period. The advantage of the 8-week period is that it allows borrowers to receive their forgiveness faster while the 24-week period allows for a longer time to achieve forgiveness. If the 24-week period is chosen, borrowers must maintain staffing levels for the entire period and only expenses up to December 31, 2020, can be included.
At least 60% of your loan proceeds must be used for covered payroll costs for full forgiveness. Covered Payroll Costs include:
Documentation to be provided for Forgiveness
You will need to provide the following documentation to substantiate your request for loan forgiveness. You will be asked to submit the documentation electronically through the PPP Forgiveness Platform. If these documents are not in digital form, please take the time soon to scan these and get them ready for upload. Documents can be up to 25MB and the following file types: pdf, xls, xlsx, csv, doc, docx, jpg, jpeg, and png.
Payroll 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:
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