• A borrower will not have to make any payments (principal or interest) for the portion of the PPP loan that is forgiven so long as the borrower submits its forgiveness application within ten months of the completion of the Covered Period
• The borrower is not required to make any payments until the forgiveness amount is remitted to the lender by the SBA.
• Sole proprietors, independent contractors, and self-employed individuals who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form automatically qualify to (and should) use the PPP Loan Forgiveness Application Form 3508EZ.
• Payroll costs incurred before, but paid during, the Covered Period (or Alternative Payroll Covered Period, if applicable) are eligible for forgiveness.
• Gross amounts should be used when calculating the cash component of payroll costs.
• Payroll costs include all forms of cash compensation paid to employees, including tips, commissions, bonuses, and hazard pay. 
• Forgivable cash compensation per employee is limited to $100,000 on an annualized basis. 
• Employer expenses for employee group health care benefits that are paid or incurred by the borrower during the Covered Period or the Alternative Payroll Covered Period are considered payroll costs and are eligible for loan forgiveness.
• Generally, employer contributions for employee retirement benefits that are paid or incurred by the borrower during the Covered Period or Alternative Payroll Covered Period qualify as payroll costs and are eligible for loan forgiveness. 
• The employer contributions for retirement benefits included in the loan forgiveness amount as payroll costs cannot include any retirement contributions deducted from employees’ pay or otherwise paid by employees. 
• Forgiveness is not provided for employer contributions for retirement benefits accelerated from periods outside the Covered Period or Alternative Covered Period.
• The amount of compensation of owners who work at their business that is eligible for forgiveness depends on the business type and whether the borrower is using an eight-week or 24-week Covered Period. 
• The amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at $20,833 per individual in total across all businesses in which he or she has an ownership stake. 
• For borrowers that received a PPP loan before June 5, 2020 and elect to use an eight-week Covered Period, this cap is $15,385. 
• If their total compensation across businesses that receive a PPP loan exceeds the cap, owners can choose how to allocate the capped amount across different businesses.
• Eligible business mortgage interest costs, eligible business rent or lease costs, and eligible business utility costs incurred prior to the Covered Period and paid during the Covered Period are eligible for loan forgiveness.
• Nonpayroll costs are eligible for loan forgiveness if they were incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.
• Interest on unsecured credit is not eligible for forgiveness.
• Rent payments on leases that were renewed and interest payments on mortgage loans that were refinanced are eligible for forgiveness if the original lease and mortgage loan was in existence prior to February 15, 2020.
• The Alternative Payroll Covered Period applies only to payroll costs, not to nonpayroll costs.
• Covered utility payments for transportation only includes transportation utility fees assessed by state and local governments. Payment of these fees by the borrower is eligible for loan forgiveness.
• Payments of interest on business mortgages on real or personal property (such as an auto loan) are eligible for loan forgiveness.
• If a lease that existed prior to February 15, 2020 expires on or after February 15, 2020 and is renewed, the lease payments made pursuant to the renewed lease during the Covered Period are eligible for loan forgiveness.
• The entire electricity bill payment is eligible for loan forgiveness (even if charges are invoiced separately), including supply charges, distribution charges, and other charges such as gross receipts taxes.
• In calculating its loan forgiveness amount, a borrower may exclude any reduction in FTE employees if the borrower is able to document in good faith the following: (1) an inability to rehire individuals who were employees of the borrower on February 15, 2020 and (2) an inability to hire similarly qualified individuals for unfilled positions on or before December 31, 2020. 
• Borrowers are required to inform the applicable state unemployment insurance office of any employee’s rejected rehire offer within 30 days of the employee’s rejection of the offer.
• A seasonal employer that elects to use a 12-week period between May 1, 2019 and September 15, 2019 to calculate its maximum PPP loan amount must use the same 12-week period as the reference period for calculation of any reduction in the amount of loan forgiveness.
• The full time equivalent (FTE) Reduction Exception in Table 1 of the PPP Schedule A Worksheet can include employees listed in Table 2 of the PPP Schedule A Worksheet (those making more than $100,000 in 2019).
• If the salary or hourly wage of a covered employee6 is reduced by more than 25% during the Covered Period or the Alternative Payroll Covered Period, the portion in excess of 25% reduces the eligible forgiveness amount unless the borrower satisfies the Salary/Hourly Wage Reduction Safe Harbor (as described in the Loan Forgiveness Application (SBA Form 3508 or lender equivalent)).
• For purposes of calculating reductions in the loan forgiveness amount, the borrower should only take into account decreases in salaries or wages.