SBA has simplified the loan forgiveness process

Ferrone & Associates CPAsBlog

Good news for borrowers with PPP loans of $50,000 or less: The SBA has simplified the loan forgiveness application process. Now you just need to fill out a 1-page application, provide supporting documentation, and certify that funds were used for approved purposes in order to qualify for forgiveness.

Documents Required:

  • 3rd Party payroll reports (Gusto, ADP, Paychex, etc.) or self-generated payroll report, supported by bank statements, that show gross wages paid out to employees, and, if hourly, the number of hours worked for the covered period
  • Tax forms (or equivalent 3rd party payroll reports) for the periods that overlap with the covered period – specifically Federal 941, 944, or 940 forms and State quarterly wage and unemployment tax filings that are or will be filed with the state

If you are going to include Rent, mortgage interest, and/or utilities, you will need to provide the following:

Rent:

  • Current lease agreement!
  • Canceled checks/receipts for the covered period

Mortgage Interest:

  • Lender amortization schedule and canceled checks/receipts for the covered period OR
  • mortgage statements from February 2020 and the covered period through one month after the end of either period.

Utilities:
(These can include: Electricity, Gas, Water, Phone, Internet, and some transportation costs)

  • Utility bills
  • proof of payment for utility bills incurred or paid for during the covered period.
  • (Please note on utilities that this does not include equipment or vehicle lease or loan payments)