SBA Paycheck Protection Program

SBA PPP Loan Forgiveness FAQ’s:

 

Q:When can I submit my Application for Forgiveness?

  1. You can submit your Application after you finish spending your PPP funds, you do not have to wait for the end of either the 8-week Covered Period or the 24-week Covered Period. However, One World Bank is still waiting on Guidance from the Treasury Department (“Treasury”) and the US Small Business Administration (“SBA”) on how to submit Borrower PPP Loan Forgiveness Applications to the SBA.  Until we receive that Guidance, we can not accept the Applications for Forgiveness.  Please get your documentation ready and we will notify you as soon as we receive the Guidance.

 

Q:Is there a deadline to submit the Application for Forgiveness?

  1. The deadline to submit the Application for Forgiveness is 10 months after the end of your Covered Period for spending the loan proceeds.

 

Q:How do I apply for Forgiveness

  1. By filling out either SBA Form 3508 or 3508EZ and attachments

 

Q:How do I know which form to use?

  1. You can use SBA Form 3508EZ if any of the following 3 conditions are met by the borrower:
  2. The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP application AND did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
  3. The Borrower did not reduce annual salary or hourly wages of any employee by more

than 25 Percent during the Covered Period or the Alternative Payroll Covered Period compared to the period between January 1, 2020 and March 31, 2020

AND

The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period.  (Ignore reductions that arose from an  inability to rehire individuals who were employees on February 15, 20209 if the
Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020.Also ignore reductions in an  employee’s hours that the Borrower offered to restore and the employee refused.

 

  1. The Borrower did not reduce annual salary or hourly wages of any employee by more

than 25 Percent during the Covered Period or the Alternative Payroll Covered Period compared to the period between January 1, 2020 and March 31, 2020

AND

The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or distancing, or any other work or customer safety requirement related to COVID-19

 

 

Q: Where can I find out more information about completing my Application for Forgiveness?

  1. You can go to the SBA website at SBA.gov and click on the Coronavirus ribbon at the top of the web page. You can also go to the Treasury webpage:

                https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

 

Q:How much of my PPP can be forgiven?

  1. Up to 100% of your PPP loan is eligible for Forgiveness. The amount of forgiveness is equal to the amount you spend during the Covered Period on eligible expenses, including:
    1. Payroll Costs – 60% of PPP Loan Funds must be used to pay Payroll Costs
    2. No more than 40% of PPP Loan Funds may be used for the following eligible expenses:
      1. Interest on Mortgage Obligations incurred in then ordinary course of business in place before February 15, 2020
      2. Rent on a lease agreement in place before February 15, 2020
  • Utilities

 

Q: Can the amount forgiven be reduced?

  1. The amount forgiven can be reduced two ways:
    1. There is more than a 25% reduction in wages paid to employees
    2. There is a reduction in the number of employees
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