Windham Region Chamber of Commerce

by

REMINDERS ABOUT PPP FORGIVENESS

Allowable Costs
The SBA requires that payroll costs be documented as follows:
  • Bank accounts or third-party payroll service reports documenting cash compensation paid to employees
  • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the covered period or alternative payroll covered period.
  • Payment receipts, cancelled checks, or account statements documenting employer contributions to employee health insurance and retirement plans.
Other costs allowed:
  1. Rent includes “business rent or lease payments pursuant to lease agreements for real or personal property in force between February 15, 2020.”
  2. Personal property items such as copiers, servers, vehicles, and other leased items can be included with forgivable non-payroll costs.
  3. The mortgage interest payment definition includes loans for real property and personal property, with interest paid on loans for equipment, vehicles, and other items eligible for forgiveness.
  4. Personal property items such as copiers, servers, vehicles, and other leased items can be included with forgivable non-payroll costs.
  5. Utility expenses are also allowed, and include “electricity, gas, water, transportation, telephone, or internet access, for which service began before February 15, 2020.”
Documentation
  1. The SBA requires that borrowers document rent, mortgage interest, and utility costs, to prove the existence of an obligation or service prior to February 15, 2020 and evidence of payments during the eight-week post-loan period.
  2. Lender amortization schedule, payment receipts, and statements from February 2020 and during the eight-week covered period are acceptable for documenting mortgage interest payments.
  3. PPP lenders are required to act on loan forgiveness applications within 60 days.
  4. For rent or lease payments, the SBA requires a copy of the lease agreement and copies of account statements or cancelled checks.
  5. Utility payments must be documented with invoices or account statements from February 2020.
  6. Borrowers are required to submit PPP forgiveness applications to their lender, with the lender then required to act on the application within 60 days.
To date:
Almost 73,000 Connecticut small businesses—representing 79% of the state’s small business payrolls were approved for a total of $10.82 billion in PPP loans. If you have not applied there is still money in the Payroll Protection Program.