Teach you how to prepare for PPP loan exemption application! [Dry goods collection]-Food squad

Catering boss must read the blue words above

On May 5, the US Federal Small Business Administration (SBA) finally launchedPPP loan relief application form 3508 (Paycheck Protection Program Loan Forgiveness Application SBA Form 3508), The application form is filled out for business owners who have applied for PPP and apply for loan relief from the borrower.

In this issue we will introduce how to apply for PPP loan exemption.If you need help filling out the application form, please consult a professional accountant, this article is for reference only.At present, the policy changes frequently, please follow us, the news of the North American catering industry is the first to know!

If you don’t know anything about PPP, please review our previous articles:

U.S. SBA policy is fully interpreted, how can small restaurant owners borrow money without paying it?

Banking Commissioner redraws SBA policy priorities!

Submit the required documents for the waiver application

This timePPP Loan Relief Application Form 3508There are 11 pages including instructions,Divided into 4 forms.If you need to download the application form, please pull to the end of the article and click the original text to jump to download.These include:

PPP Loan Forgiveness Calculation Form

PPP Schedule A (PPP Schedule A)

PPP Schedule A Worksheet

(Not required) PPP Borrower Demographic Information Form (Optional PPP Borrower Demographic Information Form)

Required form when submitting the application

PPP Loan Forgiveness Calculation Form
PPP Schedule A PPP Schedule A

Must prove when submitting the application

Prove your Payroll expenses:Bank bills, third-party compensation service providers' cash compensation reports to employees, tax forms, state quarterly wage reports, unemployment insurance tax returns, receipts for medical insurance receipts, etc.;
Prove your FTE number:Tax forms,State Quarterly Wage Report and Unemployment Insurance Tax ReturnWait (to be able to reflect your02/15/2019-06/30/2019期间雇佣平均每月FTE员工数量和01/01/2020-02/29/2020期间雇佣平均每月FTE员工数量的对比）；
Prove your Non-Payroll expenses:Receipts for commercial loan payments, bills starting in February 2020, commercial lease contracts, bills, receipts for payment of water and gas, etc.

Documents that must be kept when submitting the application for exemption

PPP Schedule A Worksheet or other equivalent documents

PPP loan deduction calculation table (PPP Loan Forgiveness Calculation Form)

The borrower must complete and submit this form.There are 4 pages in this form, the first 2 pages are instructions for you to fill in, and the last XNUMX pages include yourBasic information和Calculate the amount.

Fill in basic information

Business Legal Name Borrower's company name
Contact information Company address, telephone, email
SBA PPP Loan Number (provided by SBA)
Lender PPP Loan Number (provided by your borrowing bank, financial institution)
PPP Loan Amount PPP loan amount
Number of employees when applying for a loan
Number of employees when applying for exemption
Date of receipt of PPP loan (if there are multiple dates, fill in the earliest date received)
EIDL Advance amount
EIDL Application Number
Types of Payroll Schedule (weekly, biweekly, twice a month, monthly or other)
Covered Period: Counted from the day the loan was received, a total of 56 days (8 weeks)
Alternative Payroll Covered Period: If the pay period is biweekly or more frequently, the first day of calculating the qualifying salary cost can be calculated from the first payday after receiving the PPP loan
Check if you receive more than 200 million loans

⚠️ If you choose"Alternative Payroll Covered Period (Additional pay coverage period）", Any reference to "Covered Period" or "Alternative Payroll Covered Period" in the application must use this date, but mention"Covered Period Only"Where you need to use the normal coverage period.

Calculation of loan repayment amount

Line 1 Total cost of qualified salary accrued or paid during the coverage period

(This number is calculated by Line 2 of PPP Schedule A in the second table)

Line 2 Loans that occurred before February 2020, 2, and interest paid during the coverage period (excluding Prepayment)

Line 3 Rent paid during the coverage period of commercial lease contracts that existed before February 2020, 2

Line 4 The payment of water, electricity, transportation, and telephone network fees for services that exist before February 2020, 2 during the coverage period

Line 5 Enter the amount of PPP Schedule A Line 3. This amount reflects the reduction in the amount of exemption caused by a reduction of more than 25% of the salary of a specific employee

Line 6 adds up the numbers in the first 5 rows of this table

Line 7 Enter the amount of PPP Schedule A Line 13

Line 8 Input the amount of Line 6 * the amount of Line 13 in this table

Line 9 PPP loan total

Line 10 Use the amount in line 1 of this table*0.75 (judge whether at least 75% of the exempted amount is used for wage costs)

Line 11 free amount (minimum value in line 8, line 9, and line 10 of this table)

⚠️ Note that Line 2-4 does not need to calculate any expenses that are not included in the exempt amount; it should be included in the coverage period and the non-remuneration costs paid before the next regular billing day after the coverage period.

PPP Schedule A

The borrower must complete and submit this form.

Line 1-5 direct referencePPP Schedule A WorksheetFill in the amount;

Line 6 Fill in the period covered by all employersmedical insurancePartial amount

Line 7 Fill in the period covered by all employersEmployee pension

Line 8 Fill in the period covered by all employersState or local payroll tax, unemployment insurance tax, etc.

Line 9 fill in the amount paid to the owner during the coverage period, with a maximum of $15385 per person

Line 10 adds up Line 1+4+6+7+8+9 in this table (this is Line 1 in the first table)

Line 11 reference period FTE quantity

（可以选的参考期有02/15/2019-06/30/2019 或01/01/2020-02/29/2020；季节性雇主还可以选择05/01/2019-09/15/2019连续的12周）

⚠️If you cover the number of FTEless thanThe number of FTEs in your reference period,The amount of the waiver may be reduced.But if you meetThe conditions of FTE Reduction Safe Harbor can be waived. We will explain in detail in the next tableFTE Reduction Safe Harborconditions of.

Line 12 Line 2 of this table plus Line 5 of this table

Line 13 Divide Line 11 of this table by Line 12 of this table

(The maximum value is 1, if you meet FTE Reduction Safe Harbor, enter 1 directly)

PPP Form A Worksheet

(PPP Schedule A Worksheet)

The borrower must complete this form and need to keep it.If your salary is usually handled by the salary system or a third party, you can also use the report provided by the salary system or the third party.

Table 1 & Table 2 are used to fill in basic employee information and salary level, the difference isTable 1 is used to fill in the information of employees who have an employment relationship during the coverage period and whose total salary in 2019 is less than US$10, or who were not hired in 2019;Table 2 is used to fill in the information of employees who have an employment relationship during the coverage period and whose salary exceeds US$2019 in 10.

Table 1 & Table 2 need the following information

Employee's Name Your employee's name
Employee Identifier The last four employees of SSN
Cash Compensation Salaries, commissions, tips, paid leave compensation, separation allowance for all periods covered
Average FTE: Divide each employee's weekly working hours during the coverage period by 40, and retain up to 1 decimal place.(To simplify calculations, write 40 for employees who work 1 hours or more, and 0.5 for less work)
Salary / Hourly Wage Reduction 相比起01/01/2020-03/31/2020，对PPP覆盖期间薪酬减少25%或以上的员工进行这一项计算

There are many issues that bosses care about most. If I want employees to be hired back, but the employees are unwilling, what should I do if my money cannot be sent out and the FTE is reduced?

Inside and outsideFTE Reduction Exceptions can fill in the number of new employees who meet the following conditions and the position has not been recruited, and will not affect your exempt amount:The boss issued a written offer willing to cover the periodThe employee was hired back, but the employee refused; or the employee was fired for a valid reason during the coverage period, voluntarily resigned, and voluntarily requested to reduce working hours.So during this time, please be sure to keep the proof of written communication with employees.

⚠️FTE Reduction Safe Harbor conditions:如果您在02/15/2020-04/26/2020期间减少了员工FTE数量，但是在06/30/2020之前恢复了包含02/15/2020当天在内的Pay Period的员工FTE数量，也不会影响您的免还金额。

The SBA, which is currently restoring the number of FTE employees on June 6, is under discussion and may be extended to the end of the year. If there is the latest news, we will continue to follow up!

Financial Advisor | Lemon Jun

Text finishing | Chenpi Red Bean Paste

Under the new crown epidemic, the Chinese restaurant industry in North America has encountered unprecedented challenges. If you can guarantee cash and guarantee safety, your restaurant survival chance will be greatly improved! The Chinese are hard-working and not afraid of hardships. As long as we can work together and work together, we will definitely be able to overcome the difficulties together!

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