PPP Loan Forgiveness - Documentation

1 As of October 2, 2020 PPP loan Forgiveness -DocumentationAs of Oct. 2, 2020 Table of Contents2 TopicPagesPayrollDocumentation3 Cash Compensation EmployeeHealth Insurance Employee Retirement Plans State & Local TaxesNon-payroll Documentation4 Mortgage InterestPayments Rent or Lease Payments Utility PaymentsFTE Documentation5 -6 DocumentsBorrowers Must Maintain7 -8As of Oct. 2, 2020 All Borrowers -Payroll Expense Documentation3 Expense TypeAcceptableDocumentsCash Compensation(StandardApp Schedule A Lines 1, 4, and 9&Standard App loan Forgiveness Calculation Form Line 1)(EZ App-Line1)Please note: Acceptable documents for each employee are capped at annualized rate of $100,000 ($15,385 for 8-week covered period, $46,154 for 24-week covered period). Employee must have been employed during the covered period and have a principal residence.

2 Third-party payroll service provider reports or Tax forms (reported or tobe reported): Payroll tax filings (typically Form 941) and State quarterly business and individualemployee wage reporting and unemployment insurance tax filings or Bank Account StatementsEmployerContributionsfor Employee Health Insurance(Standard App Schedule A Line 6&Standard App loan Forgiveness Calculation Form Line 1)(EZ App Line 1) CancelledChecks (front and back) or Payment Receipts or Account Statements/Bills/Invoices Excludeemployer contributions made on behalf of owner employees Employer Contributions for Employee Retirement Plans(Standard App Schedule A Line 7&Standard App loan Forgiveness Calculation Form Line 1)(EZ App Line 1) CancelledChecks (front and back) or Payment Receipts or Account Statements/Bills/Invoices Excludeemployer contributions made on behalf of owner employees Employer Contributions for State and Local TaxesAssessed on Employee Compensation(Standard App Schedule A Line 8&Standard App loan Forgiveness Calculation Form Line 1)(EZ App Line 1) Tax forms (reported or to be reported) orequivalent third-party payrollservice provider reports.

3 Payroll tax filings reported (typically Form 941) and State quarterly business and individual employee wage reporting and unemployment insurance tax filings Documentation is neededfor all expense types for which borrower is claiming Forgiveness All Documentation should cover,in entirety, the period for which borrower is claiming forgivenessDocumentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Covered PeriodAs of Oct. 2, 2020 All Borrowers -Non-payroll Expense Documentation4 Expense TypeProof of Existence on or before February 15, 2020andProofof your Covered Period Payments(8 or 24 week covered period)MortgageInterest Payments(StandardApp Forgiveness Calculation Form Line 2)(EZ App Line 2) LenderAccount Statements / Bill from February 2020 or earlieror Original loan Documentation ( , Note, Amortization Schedule)AND Lender Account Statements/Bills or CancelledChecks (front and back)or Payment ReceiptsEnsure that your Mortgage Interest Documentation shows the breakout of interest and principal and supports the amount spent/claimed on your Forgiveness applicationRent orLease Payments(Standard App Forgiveness Calculation Form Line 3)(EZ App Line 3)

4 Copy of Account Statements / Bill from February 2020 or earlieror Copy offully executed Lease Agreement dated on or before February 15, 2020 AND Lender Account Statements/Bills or CancelledChecks (front and back)or Payment Receipts Provide all verifying payments that support the amount spent/claimed on your Forgiveness applicationUtility Payments(Standard App Forgiveness Calculation Form Line 4)(EZ App Line 4) Copy of Utility Bill(s)from February 2020 or earlierAND Copy of Utility Bill(s) from the Covered Period and Cancelled Checks (front and back)or Payment Receipts or Account StatementsProvide all verifying payments that support the amount spent/claimed on your Forgiveness application In all instances you must provide Documentation showing proofof existence andproof of payment For utility payments proof of existence and proof of payment is required for eachutility for which the borrower is claiming Forgiveness .

5 Utilities consists of the following categories: Electricity, Gas, Internet, Transportation, Telephone and verifying the existence of the obligations/services on or before February 15, 2020 and eligible paymentsfrom your Covered PeriodAs of Oct. 2, 2020 Standard Application -FTE Documentation5 Validation OfAcceptableDocumentsAverage Number of FTE(Schedule A Line 11) Payroll tax filings reported or to be reported to the IRS (typically Form 941) and State quarterly business and individualemployee wage reporting and unemployment insurance tax filings reported orto be reported Documentation must overlap completelywith the reference period chosen by the borrower for the purposes of completing Schedule A, line 11 Documentation may extend beyondthe reference periodDocumentation verifying the average number of FTE employees on payroll per month during the borrowers chosen reference periodAs of Oct.

6 2, 2020EZ Application -FTE Documentation6 Validation OfAcceptableDocumentsAverage Number of FTE Payroll tax filings reported or to be reported to the IRS (typically Form 941) and State quarterly business and individualemployee wage reporting and unemployment insurance tax filings reported orto be reported FTE Documentation is onlyneeded by borrowers using the EZ Application if they checked the second box (see below) to verify eligibility for using the EZ Application. This box indicatesthat they did not reduce salaries, the number of employees, or the average paid hours of verifying the average number of FTE employees on payroll as of January 1, 2020and at the end of the covered of Oct. 2, 2020 Standard Application -Documents the Borrower Must Maintain7 Borrowers are required to maintain, but do not need to submit, the below documentsIn addition to the ScheduleA Worksheet, borrowers must also maintain Documentation .

7 Supporting the listing of each individual employee in PPP Schedule A WorksheetTable 1 Including the Salary/Hourly Wage Reduction calculation, when applicable Supporting the listing of each individual employee in PPP Schedule A Worksheet Table 2 Including demonstrating that each listed employee received during any single pay period in 2019 compensation at an annualized rate of more than $100,000 Regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for a reduction in work schedule If applicable, supporting the certification that the borrower was unable to operate between February 15, 2020 and the end of the covered period at the same level of business activity before February15, 2020 due to compliance with health guidelines established between March 1, 2020 and December 31, 2020 related to COVID-19 safety requirements Supporting PPP Schedule A Worksheet FTE Reduction Safe Harbor 2 Relating to the borrower s original PPP loan ApplicationAs of Oct.

8 2, 2020EZ Application -Documents the Borrower Must Maintain8 Maintain Documentation : Supporting the certification that annual salaries/wageswere not reduced by more than 25% Including payroll records that separately list each employee and show the amounts paid to each employee during the period between January 1, 2020 and March 31, 2020 and during the Covered or Alternative Covered period Regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for a reduction in work schedule as well as Documentation reflecting the inability to hire similarly qualified employees before December 31, 2020 If applicable, supporting the certification that the borrower did not reduce the number of employees or the average paid hours of employees Including payroll records that separately list each employee and show the amounts pa id to each employee between January 1, 2020 and the end of the Covered Period If applicable, supporting the certification that the borrower was unable to operate between February 15, 2020 and the end of the covered period at the same level of business activity as prior to February 15, 2020 due to compliance with health guidelines established between March 1, 2020 and December 31.

9 2020 related to COVID-19 safety requirements Including copies of applicable requirements for each borrower location and relevant borrower financial records Relating to the borrower s original PPP loan ApplicationBorrowers are required to maintain, but do not need to submit, the below documents