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THE APPLICATION PROCESS, FORMS AND FORGIVENESS PROCESS HAVE NOT BEEN FINALIZED AND THE INFORMATION PRESENTED BELOW IS SUBJECT TO THE REGULATIONS UNDER THE PAYCHECK PROTECTION PROGRAM, AND MAY BE REVISED BY THE US TREASURY AND THE SMALL BUSINESS ADMINISTRATION.
Under the Paycheck Protection Program (PPP), the principal amount of the loan and accrued interest may be eligible for forgiveness. This document provides important information regarding what you need to
know to request forgiveness.
How can PPP loans be used?
• Payroll costs (For details, see): https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf)
• Note: 75% of the loan must be used for payroll costs to be eligible for forgiveness • Interest on mortgage obligations, incurred before February 15, 2020 • Rent, under lease agreements in force before February 15, 2020
• Utilities, for which service began before February 15, 2020
How much of the loan will be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than the items listed above over the 8 weeks after getting the loan. You will also owe money if you do not maintain your staff and payroll.
• Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time equivalent employee headcount.
• Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
• Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
How do I request forgiveness on my loan?
Submit a request to your banker with the following:
• Payroll documentation that verifies the amount paid in the 8 weeks after getting the loan, number of full-time equivalent employees, and pay rates.
• Evidence of payment for interest on mortgage debt, rent, and utilities.
• A signed certification stating that the documents provided are true, and that you used the forgiveness amount to keep employees, pay eligible mortgage interest, rent and utility payments.