SBA Paycheck Protection Program

SBA Paycheck Protection Program

It has been our privilege to provide you an SBA Paycheck Protection Program (PPP) loan. While the SBA has extended the PPP loan program, many clients are ready to process their Loan Forgiveness Application. Over the last several weeks, PSB has been busy establishing a secure online portal that will aid you in submitting the documentation necessary to seek loan forgiveness.


What You Will Need For This Process:


• Loan Forgiveness Portal Link


Information you need to set up an account:

• SBA Loan #, which can be found on your loan closing documents

• Borrower’s Tax ID or Social Security Number


Tutorial: 

• View the Lenders Cooperative’s video guide to using the portal 


Preparing To Submit Your Loan Forgiveness Application:

• It will be helpful to review the Paycheck Protection Program Loan Forgiveness Application ahead of time to understand what questions you need to answer and supporting documentation you are required to submit.  

• The full application can be found here.

• EIDL Advance information can be found here.


Once you start your Loan Forgiveness Application in the portal, you will be able to save and return to the application at a later time if needed.  


SBA Paycheck Protection Program


EZ Form Loan Forgiveness Eligibility:

You may be eligible to use the EZ Form, which is a streamlined Loan Forgiveness Application.  Basic qualifications for the EZ form applies to borrowers that:

• Are self-employed and have no employees 

• Did not reduce their employees' salaries or wages by more than 25 percent and did not reduce their employees' number of hours 

• Experienced reductions in business activity due to health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25 percent.  


Documentation That Requires Upload To Portal:


Payroll: 

• Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:

    • Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees. 

    • Tax forms or third-party payroll service provider reports that overlap with the Covered Period or the Alternative Payroll Covered Period:

      • i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and 

      • ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.

  • Payment receipts, canceled checks, or account statements documenting the amount of employer contributions to employee health insurance & retirement plans that the Borrower included in the forgiveness amount (PPP Schedule A, lines (6) and (7)). 


Full-Time Equivalency (FTE) Calculation:


• Documentation showing one of the following: 

    • The average number of FTE employees on payroll per month employed by the Borrower between February 15th and June 30, 2019;

    • The average number of FTE employees on payroll per month employed by the Borrower between January 1st and February 29, 2020; or 

    • For seasonal employers, the average number of FTE employees on payroll per month between February 15th and June 30, 2019; between January 1st and February 29, 2020; or any consecutive twelve-week period between May 1st and September 15, 2019.

    • The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include payroll tax filings reported, or that will be reported to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or will be reported to the relevant state. Documents submitted may cover periods longer than the specified time period but in no case less than the covered time period.


SBA Paycheck Protection Program

Non-Payroll Expenses:


• Documentation verifying the existence of the obligations/services prior to February 15, 2020, and eligible payments from the Covered Period. 

  • Business mortgage interest payments: 

    • Copy of lender amortization schedule and receipts or canceled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments. 

  • Business rent or lease payments: 

    • Copy of current lease agreement and receipts or canceled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. 

  • Business utility payments: 

    • Copy of invoices from February 2020 and those paid during the Covered Period and receipts, canceled checks, or account statements verifying those eligible payments.


Upon submitting your Loan Forgiveness Application and supporting documentation, PSB will review and respond to your request. If more information is required to complete a review of your application, you will receive communication through the secure portal requesting this missing documentation. Once the application is approved, you will be requested to electronically sign the submission at which time we will present the package to SBA for final processing.


If you have any questions, please do not hesitate to contact your account officer. Again we appreciate the opportunity to serve you through this Paycheck Protection Loan Program.

SBA Paycheck Protection Program