PPP Forgiveness Supporting Docs Wayback

Summary

A customer guidebook titled PPP Forgiveness Required Documents, copyright 2021 by Biz2Credit, setting out documentation requirements for Paycheck Protection Program loan forgiveness based on Small Business Administration guidance. It explains how to choose among SBA Form 3508, 3508-EZ and 3508-S, with criteria such as self-employment without employees, loans greater than $150,000, and loans of $150,000 or less with affiliate loans totaling $2 million or less. For each form it lists required payroll documents, such as bank statements, payroll provider reports and IRS Form 941 filings, and documents required only if the borrower had non-payroll costs. It also lists proof of revenue reduction for second draw applicants and a section for sole proprietors. The guidebook states that its information may not be comprehensive and that SBA guidance is subject to change.

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PPP
Forgiveness
Required
Documents
Customer Guidebook




                     Copyright 2021, Biz2Credit
Overview

This is a guideline for documentation requirements for PPP loan forgiveness that is based
on the Small Business Administration’s latest guidance. The guideline describes
requirements based on the type of application form that the client will complete, either
a Form 3508, 3508-EZ or 3508-S.
Although this is intended to help applicants prepare a PPP forgiveness application, the
information contained in this guidebook may not be comprehensive. The SBA may issue
additional requirements for documentation above and beyond the standard
document requests that are included in this guidebook at their sole discretion.


Guidance on PPP forgiveness is subject to change. Check the latest information on
SBA.gov to ensure you have referred to the latest rules and regulations before you start
the application.
Table of Contents

Supporting Documentation for PPP Loan Forgiveness
(Applies to First and Second Draw Loans)

o Understanding SBA 3508, 3508-EZ and 3508-S
1. SBA Form 3508
2. SBA Form 3508-EZ
3. SBA Form 3508-S
4. Special Information for Sole Proprietors
 Loan Forgiveness Applications
 There are now three different versions of the PPP forgiveness application. When applying for PPP
 forgiveness, be sure to choose the right application for your business using the conditions listed
 below as a guide.

         Criteria for choosing correct form                                                    SBA 3508                             SBA 3508-EZ                  SBA 3508-S

                                                                                                                                    ✓                            ✓
         (examples below may not be comprehensive)


                                                                                                                                                               
                                                                                                                                    ✓
         1. Self-employed without any employees


                                                                                                                                                               
                                                                                                                                    ✓
         2. Did not reduce salary or wages by more than 25%




                                                                                               ✓
         3. Experienced decrease in business activity as result of
                                                                                                                                                               
                                                                                                                                    ✓
            health directives and maintained salary / wages



                                                                                               ✓
         4. Received a loan greater than $150,000                                                                                                              

                                                                                               ✓
         5. Applying with safe harbor                                                                                                                          
                                                                                                                                                               
                                                                                                                                                                 ✓
         6. Self-employed with employees

         7. Received loan of $150,000 or less and together with
            its affiliates, received loans totaling $2 million or less                                                                                         

Note: For Biz2Credit clients, when you create your PPP forgiveness application the system will automatically guide you to select the correct application form.
SBA Form 3508 – Documentation List
Required (In All Cases)
• Payroll Costs (choose one or more)
    • Bank statements or third-party payroll service provider reports
    • IRS Form 941 and state quarterly tax filings
    • Payment receipts, cancelled checks, or account statements supporting employer contributions
• Documentation to support average number of FTE employees per week
    • From 2/15/19 – 6/30/19: IRS Form 941 or equivalent state tax filing
    • From 1/1/20 – 2/29/20: IRS Form 941 or equivalent state tax filing
    • Covering the entire covered period: IRS Form 941s or equivalent state tax filing(s)

Required If Borrower Had These Expenses / Optional for All Others
• Non-payroll costs
    • Mortgage Statement or Business Rent and Lease Payment Invoices / Statements
    • Business Utility Payment Statements
    • Receipts for Payments on Covered Operations Cost
    • Receipts or Invoices for Payments on Covered Property Damage Cost
    • Receipts or Invoices for Payments on Covered Supplier Costs
    • Receipts for Payments on Covered Worker Protection Expenditure
SBA Form 3508-EZ – Documentation List
Required (In All Cases)
• Payroll Costs (choose one or more)
    • Bank statements or third-party payroll service provider reports
    • IRS Form 941 and state quarterly tax filings
    • Payment receipts, cancelled checks, or account statements supporting employer contributions
• Covers 1/1/2020 and at the entire covered period: IRS Form 941 or equivalent state tax filing(s)


Required If Borrower Had These Expenses / Optional for All Others
• Non-payroll costs
    • Mortgage Statement or Business Rent and Lease Payment Invoices / Statements
    • Business Utility Payment Statements
    • Receipts for Payments on Covered Operations Cost
    • Receipts or Invoices for Payments on Covered Property Damage Cost
    • Receipts or Invoices for Payments on Covered Supplier Costs
    • Receipts for Payments on Covered Worker Protection Expenditure
SBA Form 3508-S – Documentation List
Required for Second Draw PPP Applicants Only
• If the proof of revenue reduction was not provided at the time of the application, the borrower is required
  to provide the following covering the periods used to calculate a revenue reduction:
      • Annual IRS Income Tax Filings (required for annual reduction)
      • Quarterly Financial Statements
      • Quarterly or Monthly Bank Statements
      • Accounting Software Summary Report
      • Credit Card Receipts
      • Sales Receipts

Optional for All Borrowers

•   Payroll Costs                                 •   Non-payroll costs
     • Bank statements or third-party payroll          • Mortgage or Rent Statements
        service provider reports                       • Business Utility Payment Statements
     • IRS Form 941 and state quarterly tax            • Receipts for Payments on Covered Operations Cost
        filings                                        • Receipts for Payments on Covered Property
     • Payment receipts, cancelled checks,                Damage Cost
        or account statements supporting               • Invoices for Payments on Covered Supplier Costs
        employer contributions                         • Receipts for Payments on Covered Worker
                                                          Protection Expenditure
SBA Form 3508-S – Sole Proprietors
Sole Proprietors who do not have employees on payroll are not required to provide documentation
demonstrating the use of funds on ‘payroll expenses.’ Sole proprietors with employees should still
demonstrate the use of funds for payments made to employees, but likewise do not need to provide
documentation related to owner compensation or distributions taken by the owner.


Required
• For Second Draw Applicants Only – If the proof of revenue reduction was not provided at the time of the
  application, your client will be required to provide the following:
    • Annual IRS Income Tax Filings (required for annual reduction)
    • Quarterly Financial Statements
    • Quarterly or Monthly Bank Statements
    • Accounting Software Summary Report
    • Credit Card Receipts
    • Sales Receipts

Optional
•   Payroll Costs                               •   Non-payroll costs
     • See list on 3508-S page                       • See list on 3508-S page
                      Proud to help tens of
                      thousands of small
                      business owners
                      participate in the PPP
Paycheck Protection
Program               Learn more:
                      biz2credit.com/PPP


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