1st
Is loan forgiveness automatic?
No, request needs to submitted online
Can the customer upload documents using phone?
No
If the client do not have their Debit card with them, what step can we take to authenticate
OTP
What is the other term of Funding Date?
Disbursement date
What is the maturity of PPP loans funded on or after June 5?
5 years maturity
How to apply for loan forgiveness?
Customer must request forgiveness through Chase online
Give the two information that the Customer can only edit during the application?
Phone number and Email Address
Give examples of what covers the 60% of the PPP loan.
payroll
medical
incetives
what are examples of non eligible costs?
mortgage principal, inventory, equipment
what are the three important websites to visit in relation to ppp forgiveness?
When does an Alternative Covered Period start?
Alternative Payroll Covered Period starts the first day of the first pay period following deposit of loan funds.
This is a kind of document which is only optional if Client want to provide this kind of Document or not and it doesn't have any impact on the application.
DEMOGRAPHIC FORM/DOC
What payroll costs qualify for Forgiveness?
Payroll costs consist of compensation to your employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation.
How should I use my loan proceeds to be eligible for Forgiveness?
- Under current SBA guidance:
•You must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%
•You can use up to 40% of funds for eligible non-payroll costs, up from 25%
Give examples of what covers the 40% of the ppp loan
rent
operational costs
If I'm enrolled in the SBA subsidy program. Am I still eligible to sign up for chase 90-day deferral program?
No, If you are already enrolled in the SBA subsidy program you are no longer eligible to sign up for the 90-day deferral program.
Can I request Forgiveness if I didn't use all of my loan funds within the 8-week or 24-week Covered Period or Alternative Payroll Covered Period?
Based on the latest SBA announcements, you may be eligible for partial Forgiveness. However, since you can only request Forgiveness once, it would be beneficial to use all of your funds before requesting Forgiveness.
what are the 2 general reasons for ineligibility for sba subsidy?
account is more than 120 days past due, sba guarantee has expired.
What is the first step in submitting a PPP Forgiveness request?
Tell client you will send them an SBA PPP forgiveness application via DocuSign to complete and they can attach supporting documents when they return the document
Give at least 2 acceptable documents for clients to provide for payroll expenses:
1. Bank statements or third-party payroll service-provider reports documenting cash compensation paid to employees
2. Tax forms (or equivalent third-party payroll service-provider reports) for the periods that overlap with the covered period or the alternative payroll covered period
If I want to use the 24-week Covered Period instead of the 8-week Covered Period, do I need to amend the note document to the loan?
No, no need to update the Note document if you will choose a different covered period.
Difference of Form 3508EZ and 3508
3508EZ is the simplied form where it can be used by business that is self employed, independent contractor or sole prop who had no employees at the time of the PPP Loan Application.
3508 is the full form where the business is not a sole prop and form includes additional schedule A worksheet and documents for Safe Harbor
What is the covered period?
The 24-week (168-day) period beginning on the PPP Loan Disbursement Date, or
The 8-week (56-day) period beginning on the PPP Loan Disbursement Date if you received your PPP loan before June 5, 2020, and elect to use an eight-week (56-day) Covered Period.
What are the qualifications for 3508 EZ?
- Are self-employed, an independent contractor, or a sole proprietor and had no employees when you applied for the loan and did not include employee salaries in payroll costs
- Did not reduce by more than 25% the salary or hourly wages of any employee earning $100,000 or less annually during the Covered Period or Alternative Payroll Covered Period -- compared to January 1, 2020 through March 31, 2020 -- and did not reduce the number of employees or hours of your employees
- Did not reduce by more than 25% the salary or hourly wages of any employee earning $100,000 or less annually during the Covered Period or Alternative Payroll Covered Period -- compared to January 1, 2020 through March 31, 2020 -- and did experience reductions in business activity as a result of health directives related to COVID-19. Business activity reductions could have resulted directly or indirectly from compliance with COVID Requirements or Guidance from federal, state or local government shutdown orders that prohibited you from maintaining the same Full Time Equivalency (FTE) employee levels.
How should I use my loan proceeds to be eligible for Forgiveness?
•You must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%
•You can use up to 40% of funds for eligible non-payroll costs, up from 25%