The Small Business Administration (SBA) has released initial details regarding the forgiveness of Paycheck Protection Program (PPP) loans. If you received a PPP Loan through us, you will need to submit an application for forgiveness and supporting documentation to us in order for your loan to be forgiven. The Forgiveness Application can be accessed below:
Supporting documentation required to process the PPP loan forgiveness include:
- Payroll Documents
- Bank Account Statements or third-party payroll service provider reports documenting cash compensation.
- Tax forms or payroll reports overlapping with the 8-week period for payroll tax filings and state quarterly wage reporting and unemployment insurance tax filings. Examples: IRS Form 941, State Quarterly Payroll reports, etc.
- Payment receipts, cancelled checks, or account statements documenting payment of employer contributions to employee health insurance and retirement plan.
- Sole Proprietors, Owner-Employees, and Self Employed Individuals must also submit your 2019 IRS Form 1040 with supporting Schedule C or Schedule F or business income. For Partnerships, also include copies of the 2019 K-1 Forms.
- Full-Time Employees (FTEs):
- Documentation showing the number of FTEs for the 8-week period. Documentation may include payroll tax filings and state quarterly wage reporting and unemployment insurance tax filings. Examples: IRS Form 941, State Quarterly Payroll reports, etc.
- Documentation showing number of FTEs for your chosen base periods. Base Periods may be between February 15, 2019 and June 30, 2019 OR January 1, 2020 and February 29, 2020. For seasonal businesses, you also have an option to select a consecutive 12-week period between May 1, 2019 and September 15, 2019.
- Non-payroll Expenses:
- Documentation verifying existence of obligations/services prior to February 15, 2020.
- Documentation demonstrating eligible payments from the Covered Period (56 days from when you first received your funds).
- Examples by Non-payroll expense type:
- Business mortgage interest payments: amortization schedule and cancelled checks or lender account statements from February 2020 and covering the 8-week period.
- Business rent and lease payments: copy of current lease and receipts or lessor account statements from February 2020 and covering the 8-week period.
- Business utility payments: copy of invoices or account statements from February 2020 and the 8-week period
The U.S. Chamber of Commerce has put together a great document explaining the loan forgiveness process and the documentation required to be submitted by the borrower.
If you are a small business, sole proprietor, non-profit or church, that received one of these loans through 1st State Bank, please fill out and upload the following web form. Please note, we cannot process PPP Forgiveness for businesses who received PPP funds with another bank.