December 9, 2020

Paycheck Protection Program (PPP) Document Checklist for Applying

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The SBA loans under Section 1102 of the CARES Act (sometimes referred to as “7(a) Loans”) which are eligible for forgiveness are available to employers with less than 500 employees.

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Banks will need the following financial information in order to process the SBA loan application.

Checklist for Applying for a PPP Loan

• Copies of payroll tax reports file with the IRS (Forms 941, 940, 1099, 1096, state income and unemployment tax filing reports) for the entire year of 2019 and first quarter of 2020 (if available) should be presented.

• Copies of payroll reports for each pay period for the preceding 12 months. Such reports should include gross wages including PTO (which might include vacation, sick, and other PTO). This includes payroll reports through the pay period preceding the origination of the SBA loan. State and Local taxes assessed on the employee’s compensation for each employee. A report of payments made to independent contractors.

• Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for the immediately preceding 12 months prior to the date of the SBA loan origination. Copies of the monthly invoices should suffice.

• Documentation of all retirement plan funding by the employer for the immediately preceding 12 months. Copies of work papers, schedules, and remittances to the retirement plan administrator should be sufficient.

Checklist for Applying for PPP Loan Forgiveness

• Copies of payroll tax reports filed with the IRS (including Forms 941, 940, state income, and unemployment tax filing reports) for the 8 week period following the original of the loan.

• Copies of payroll reports for each pay period for the 8 week period following the origination of the loan. Gross wages including PTO (which might include vacation, sick, and other PTO) should be reflected.

• Copies of reports of funds paid to independent contractors for the 8 week period following the origination of the loan.

• Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for the 8 week period following the origination of the loan should be provided. Copies of the monthly invoices should suffice.

• Documentation of all retirement plan funding by the employer for the 8 weeks following the origination of the loan should be sufficient. Copies of work papers, schedules, and remittances to the retirement plan administrator should be available.

• Copies of all lease agreements for real estate and tangible personal property should be presented along with proof of payment during the 8 week period following the loan origination date.

• Copies of all statements of interest paid on debt obligations incurred prior to February 15, 2020, indicating payment amounts and proof of payment for the 8 week period following the loan origination date.

• Copies of canceled checks, statements or other evidence of utilities paid during the “covered period” for the 8 week period following the loan origination date.

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