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Small Business Relief 2

Over the last several weeks, we’ve been closely monitoring updates released from the Small Business Administration and the U.S. Department of the Treasury regarding the Paycheck Protection Program.  On May 15th, the SBA released an application for loan forgiveness. Then on June 5th, legislative amendments were enacted in HR 7010 (the “Paycheck Protection Program Flexibility Act” or PPPFA).  Specifically, the PPPFA:

Start preparing now

To prepare for the documentation requirements that come with applying for loan forgiveness, you will need to keep very good payroll and expense records.  Proof of these qualified expenses will need to be provided for your loan to be considered for forgiveness. If you don’t already, you may consider working with a tax professional or CPA for help with record-keeping.  The following actions may help increase the likelihood of forgiveness after the eight-week period:

  • Keep the PPP funds separate: If you have not already done so, consider putting the loan into its own designated account to better keep track of the funds.  
  • Keep disciplined records: Create account codes or sub-codes so there’s an organized paper trail for qualified expenses.   
  • Keep supporting documents: Stay organized with your documentation of PPP fund usage - especially for payroll, interest, rent, and utilities payments.
    • Payroll: Retain payroll registers and proof of ACH transfers. If you outsource to a professional employer organization (PEO), save your payroll invoice that shows payroll costs and employee benefits.
    • Utilities: Keep invoices and statements for electric, gas, water, phone, internet and transportation.  Gather documents showing that utility agreements were in effect prior to February 15, 2020. 
    • Rent and mortgage interest: Keep proof of payments (cancelled checks, ACH records, etc.). Gather documents showing that utility agreements were in effect prior to February 15, 2020.

Note: The SBA has stated that borrowers must retain PPP documents for at least six years after the date the loan is forgiven or paid in full. 






when can borrowers apply for forgiveness?

We encourage you to begin preparing your documentation for forgiveness now.  Because the changes with the PPPFA are largely beneficial to borrowers, we recommend that you allow additional time for the SBA to implement the new rules and update the PPP forgiveness process prior to submitting your application for loan forgiveness.  

  • You may not submit your forgiveness application any sooner than 8 weeks after the funding date of your PPP loan. 
  • You must submit your forgiveness application within 10 months after the last day of your covered period. 
  • We've created a checklist of items to gather before applying for forgiveness.  Access the checklist here. 
  • If you have already spent your PPP funds and believe you qualify for 100% forgiveness under the current PPP rules, you can submit a completed application package to us.  We will review and hold your application until the SBA opens its forgiveness processing system.

How long will the forgiveness process take?

Within 60 days of receiving your application we will review all calculations, documentation, and the forgiveness amount requested.  We will then submit your application to the SBA for approval.  The decision for full or partial forgiveness may be at the SBA’s sole discretion. 

Where is the forgiveness application located?

The SBA released an application for PPP Loan Forgiveness on its website.  In addition, we are actively developing tools to simplify and streamline the application process.  Once we are able to begin submitting forgiveness requests to the SBA, we will communicate the process for submitting your forgiveness application on this page.

Be sure to check this page frequently, as we’ll be updating it with the latest information and guidance from the SBA. 

 For more information about the Paycheck Protection Program, please visit the U.S. Small Business Administration's website.