On May 15 th, the SBA released a Paycheck Protection Program (PPP) Loan Forgiveness Application. This is the form all PPP borrowers will submit to their banks at the end of their loan period to request forgiveness for qualified expenses paid with the loan funds. It appears that it will be the borrower’s responsibility to complete this form rather than the bank’s. When your loan period ends, we will be glad to assist you in the completion of this application. As of right now, all indications are that this application will have some revisions before it is truly considered final. However, it does provide us with some good information and some guidelines to help prepare for the final version of the form.

We are happy to answer your questions and talk through situations with you; but we believe that it would be a disservice to you to calculate any projections at this time. We would need to perform lengthy calculations for an answer that is likely to change.

Even with those anticipated changes, we believe that the documentation required to support your loan forgiveness application is not likely to change. Now would be a great time to make sure you have what you need or have a system in place to collect the information in the coming weeks. The documents you will need to have on hand and ready to submit are:

For Payroll Documentation-Wages, Health Insurance, Retirement Benefits:
  • Bank Statements, payment receipts, cancelled checks, etc. since the date of the loan disbursement
  • Payroll Reports since the date of the loan disbursement
  • Payroll tax filings (941, SUTA) for the quarters that overlap with your loan period
  • Any documents regarding employee job offers/refusals, firings for cause, voluntary resignations, and/or written requests by any employee for reductions in work schedule

For Nonpayroll Costs Documentation-all obligations/services must have been in place prior to 2/15/2020:
  • For business rent or lease payments: Copy of your current lease agreement and payment receipts or lessor account statements beginning February 2020
  • For business utility payments: Copy of invoices beginning with February 2020 and receipts, cancelled checks, etc to verify payments
  • For business mortgage interest payments: Lender account statements beginning with February 2020 or lender amortization schedule with receipts or cancelled checks to verify payments

As always, please do not hesitate to reach out to us with questions. While we may not have all the answers right now, we will continue to do our best to help you make informed decisions for your business.


--The Team at Rader & Rader