PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
Use these instructions to help ensure the completeness and accuracy of your documents necessary for
requesting Loan Forgiveness. It’s important that you upload only documents that are acceptable by the Small
Business Administration (SBA). These instructions do not replace the SBA’s documentation instructions, so please
visit SBA.gov/ppp or Treasury.gov to familiarize yourself with the latest Form 3508S, Form 3508 or Form 3508EZ
instructions.
Before reading about which documents to upload based on the costs you are submitting, please note the top
five reasons we have to ask for more information.
If you’re requesting Forgiveness on a second PPP Loan of $150,000 or less, you may be required to identify the
reference period, calculate your gross receipts and submit documentation supporting a reduction of at least
25% in your gross receipts.
You also must attest to their accuracy of the information by signing and dating the first page and initialing all
other pages of documentation.
How to avoid these five common issues with documents
1. Issue:
Not verifying that a third-party pa
yroll provider prepared your payroll documents
Solution:
Submit verification that a third party prepared your payroll documents. This could include:
• A letter signed by the third party confirming it is providing the service to you
• Documents or calculations for your business with the third-party logo, name or watermark
2. Issue: Not submitting any proof of payment for payroll
Solution: If you prepare your own payroll documents, remember to submit proof of payment, such as bank
statements or canceled checks.
3. Issue: Not submitting a summary of your payroll
Solution: If you prepare your own payroll documents, remember to submit a summary page of your payroll
reconciling the amount you are requesting for Forgiv
eness. It must include:
• Name of each employee
• For each payroll period:
• Net pay that matches your proof of payment
• Gross pay for each employee
• Excess compensation — prorated per week — for all employees whose annual gross pay exceeds $100,000
• Total payroll costs eligible for Forgiveness (gross pay minus excess compensation)
• For your Covered Period:
• Consolidated total payroll costs eligible for Forgiveness
We don’t require you to submit EVERY payro
ll statement, but you should submit a document with a consolidated
column for the total amount for each employe
e
that matches the amount of Forgiveness you are requesting.
4. Issue: Not providing federal tax documents
Solution: When preparing your own documents, also submit the associated payroll tax forms during the
payroll period(s) for which you are seeking Forgiveness. For many companies, IRS Form 941 Employer’s
Quarterly Federal Tax Return would meet the requirement.
If the payroll period extends beyond the dates covered by Form 941s you’ve already led, include on your
payroll document the tax liability you will report for that period. For example, if the last payroll for your
Covered Period ended Oct. 15, and your 941 covered through Sept. 30, you would submit the 941 through
Sept. 30 as well as a document summarizing the tax liability you will report for Oct. 1 through Oct. 15.
5. Issue: Not submitting information supporting Full-Time Equivalency (FTE) employee calculations
Solution: For Form 3508EZ, submit proof of average number of FTE employees on Jan. 1, 2020.
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
On the next page, check the boxes “Included in
request?” or “In Borrower’s name?” for any
applicable rows as a conrmation that you have
submitted the correct documentation to support
your Forgiveness request.
Please make sure documents:
• Are easy to read
• Have any password protections removed
• Have le names no longer than 40 characters
• Don’t include special characters, such as *|”<\>?/,
in the le name
Acceptable le formats:
PDF (preferred), XLSX, JPG or PNG
Maximum le sizes:
Each document: 5MB
Maximum number of les:
• Up to 20 documents per category:
• Business utilities
• Payroll
• Up to 5 documents per category:
• Business mortgage interest
• Business rent or lease
• Covered operations
expenditures
• Covered property damages
• Covered supplier costs
• Covered worker protection
expenditures
• FTE
• Gross receipts
TIP: If you work with a payroll provider, you
may want to ask if it can provide a specialized
report that documents a number of payroll
and FTE costs.
Reminder of denitions:
Covered Period
The Covered Period begins on the date the loan was
disbursed. It ends on a date you choose that is at least
8 weeks but no more than 24 weeks after the loan
disbursement date.
Reference Period
The comparison period in which total average FTE
is calculated is either Feb. 15, 2019, to June 30, 2019,
or Jan. 1, 2020, to Feb. 29, 2020. Seasonal employers
can use a consecutive 12-week period between
Feb. 15, 2019, and Feb. 15, 2020.
Full-Time Equivalency (FTE)
FTE is a numerical calculation for determining
employee headcount. When requesting Forgiveness,
the Borrower may elect to use 1.0 for employees
who work 40 hours or more per week and 0.5 for
employees who work less than 40 hours per week.
The FTE calculation may be dierent than simply
counting the number of employees. For the latest
information, please refer to the Loan Forgiveness
Application Instructions for Borrowers.
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
Payroll documents
Cash compensation*
Your three types of document(s) below must show that you:
• Paid the costs during your Covered Period OR
• Incurred them during your Covered Period and paid them on or before the next regular
payroll date
Included in
request?
In Borrower’s
name?
**
1. Proof of cash compensation paid to employees; two examples are:
• Third-party payroll service provider reports
• Bank account statements together with self-prepared payroll reports
TIP: If you’re not using a third-party payroll service provider, you’ll need to submit at least
two documents, including proof of payment such as bank statements, receipts or
canceled checks.
2. Payroll tax lings, such as IRS Form 941s that have been or will be reported
TIP: These may already be part of the report generated by your third-party payroll service provider.
3. State quarterly business and individual employee wage reporting and unemployment
insurance tax lings reported, or that will be reported, to the relevant state
TIP: These may already be part of the report generated by your third-party payroll service provider.
Borrowers who file IRS Form 1040 Schedule C, Schedule F, or Schedule K-1
If you received your PPP Loan in 2020:
• If you led an IRS Form 1040 Schedule C or Schedule F for 2019, you must upload it
with your supporting documents. This may apply to sole proprietors, self-employed
individuals, independent contractors and some single-member LLCs.
• If you led an IRS Schedule K-1 (Form 1065) for general partners for 2019, you must
upload it with your supporting documents.
If you received your PPP Loan in 2021:
• If you used an IRS Form 1040 Schedule C or Schedule F from 2019 or 2020 to calculate
your loan amount, you must upload it with your supporting documents. This may apply
to sole proprietors, self-employed individuals, independent contractors and some
single-member LLCs.
• If you used an IRS Schedule K-1 (Form 1065) for general partners from 2019 or 2020 to
calculate your loan amount, you must upload it with your supporting documents.
* We also recommend you review the summary of costs Eligible for Forgiveness in the Loan Forgiveness Application Instructions for Borrowers. Check the latest SBA
Forgiveness Forms and Instructions at SBA.gov or Treasury.gov.
** May also be in Borrower’s registered DBA or trade name.
TIP: If your Covered Period overlaps multiple reporting periods, you should submit all documents showing you’ve met FTE,
payroll and/or non-payroll guidelines for the full amount for which you’re requesting Forgiveness. This means you may
need to submit documents for multiple reporting periods. For example, to show payroll costs across multiple quarters, you
may need to submit two or three quarterly lings of IRS Form 941, state quarterly business and individual employee wage
reports, or unemployment insurance tax lings.
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
Payroll compensation – non-cash compensation
Employee health and retirement benefits*
Your two types of document(s) below must show that you:
• Paid the costs during your Covered Period OR
• Incurred them during your Covered Period and paid them on or before the next regular
payroll date
Included in
request?
In Borrower’s
name?
**
1. Statements verifying employer contributions to employee group health, life, disability,
vision and dental insurance, as well as retirement
TIP: This should exclude employee contributions.
2. Proof of payment, such as bank statements, receipts or canceled checks
State and local taxes assessed on employee compensation*
Yo
ur two types of documents below must show that you:
• Paid the costs during your Covered Period OR
• Incurred them during your Covered Period and paid them on or before the next regular
payroll date or billing cycle
1. Quarterly business and individual employee wage and unemployment insurance tax lings
reported, or that will be reported, to the relevant state
2. Proof of payment, such as bank statements, receipts or canceled checks
* We also recommend you review the summary of costs Eligible for Forgiveness in the Loan Forgiveness Application Instructions for Borrowers. Check the latest SBA Forgiveness Forms
and Instructions at SBA.gov or Treasury.gov.
** May also be in Borrower’s registered DBA or trade name.
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
Full-Time Equivalency (FTE)
Your document(s) must provide proof of average number of FTE employees during the time
periods specied.
Included in
request?
In Borrower’s
name?
**
For Borrowers who use 3508S: The SBA doesn’t require you to submit FTE documentation
with your Forgiveness request. However, the SBA may request information and documents
as part of its loan review process.
For Borrowers who use 3508EZ:
• If you check only Box 1 in the Checklist for Using SBA Form 3508EZ, you must submit
FTE supporting documents for the two requirements below:
• Proof verifying average number of FTE at the end of your Covered Period
†
• Proof verifying average number of FTE on Jan. 1, 2020
• If you check Box 2 in the Checklist for Using SBA Form 3508EZ, you don’t need to submit
FTE supporting documents.
For Borrowers who use the full Form 3508: You must submit FTE supporting documents
that meet the requirement below:
• Proof verifying average number of FTE at the end of your chosen Reference Period
‡
If your calculated payroll costs, including salary/hourly wage reduction and FTE information (if applicable), are equal to
or greater than your Paycheck Protection Program (PPP) Loan amount, then you can request Forgiveness for your full
PPP Loan without submitting your non-payroll costs.
Keep in mind: Once we submit your Forgiveness request to the SBA, you might not be able to submit additional
supporting payroll or non-payroll costs or documents.
** May also be in Borrower’s registered DBA or trade name.
† Or the date you submit the Forgiveness request if you submit before the end of the 24-week Covered Period.
‡ The selected time period must be the same time period selected for purposes of completing PPP Schedule A, Line 11, available on page 3 of the 3508
PPP Loan Forgiveness Application
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
Non-payroll costs
These are defined as business mortgage interest, business lease/rent payments and business utilities.
Business mortgage interest*
Included in
request?
In Borrower’s
name?
**
Your documents must meet all three requirements for costs incurred or paid during
the Covered Period.
1. Mortgage statements or copy of lender amortization schedule verifying the existence of the
mortgage prior to Feb. 15, 2020
2. Mortgage statements or copy of lender amortization schedule verifying mortgage
interest incurred and included in your request
TIP: You should include only the portion of your payment that goes to interest, not principal.
3. Mortgage statements, bank statements, receipts or canceled checks verifying mortgage
interest paid for each month of the Covered Period through one month after the end of
the Covered Period
Included in
request?
In Borrower’s
name?
**
Business lease/rent*
Your documents must meet all three requirements for costs incurred or paid during
the Covered Period.
1. A rent or lease agreement documenting that the obligation was in place prior to Feb. 15, 2020
2. A current rent or lease agreement documenting that the obligation was in place during the
Covered Period
TIP: The current rent or lease agreement may be the same as the agreement that was in place
prior to Feb. 15, 2020.
3. Bank statements, receipts or canceled checks verifying rent or lease payments during the
Covered Period and/or through one month after the end of the Covered Period
Included in
request?
In Borrower’s
name?
**
Business utilities*
Your documents must meet all three requirements for costs incurred or paid during
the Covered Period.
1. An invoice, bill or statement verifying that the service was in existence prior to Feb. 15, 2020
2. An invoice, bill or statement verifying each expense paid or incurred during the
Covered Period
3. Bank statements, receipts or canceled checks for utility payments during the Covered
Period and/or before the next regular billing date after the end of the Covered Period
* We also recommend you review the summary of costs Eligible for Forgivenes
s in the Loan Forgiveness Application Instructions for Borrowers. Check the latest SBA
Forgiveness Forms and Instructions at SBA.gov or Treasury.gov.
* * May also be in Borrower’s registered DBA or trade name.
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
Included in
request?
In Borrower’s
name?
**
Covered operations expenditures*
You must submit documents that meet BOTH requirements below for costs incurred or paid
during your Covered Period.
1. Copy of invoices, orders or purchase orders incurred or paid during your Covered Period
2. Receipts, canceled checks or account statements verifying you paid those invoices, orders
or purchase orders
Included in
request?
In Borrower’s
name?
**
Covered property damage costs*
Your documents must meet all three requirements for costs incurred or paid during
your Covered Period.
1. Copy of invoices, orders or purchase orders incurred or paid during your Covered Period
2. Receipts, canceled checks or account statements verifying that you paid those invoices,
orders or purchase orders
3. Documentation that the costs:
• Were related to property damage and vandalism or looting due to public disturbances
that occurred during 2020
• Weren’t covered by insurance or other compensation
If no other documentation is available, you can provide a letter explaining the property damages,
including conrmation that the costs were not covered by insurance or other compensation.
Included in
request?
In Borrower’s
name?
**
Covered supplier costs*
You must submit documents that meet BOTH requirements below for costs incurred or paid
during your Covered Period.
1. Copy of contracts, orders or purchase orders in eect at any time before your Covered
Period (except for perishable goods) as well as copy of invoices, orders or purchase orders
incurred or paid during your Covered Period
2. Receipts, canceled checks or account statements verifying that you paid those invoices,
orders or purchase orders
*We also recommend you review the summary of costs Eligible for Forgiveness in the Loan Forgiveness Application Instructions for Borrowers. Check the latest SBA
Forgiveness Forms and Instructions at SBA.gov or Treasury.gov.
**
May also be in Borrower’s registered DBA or trade name.
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
Included in
request?
In Borrower’s
name?
**
Covered worker protection expenditures*
Your documents must meet all three requirements for costs incurred or paid during
your Covered Period.
1. Copy of invoices, orders or purchase orders incurred or paid during your Covered Period
2. Receipts, canceled checks or account statements verifying that you paid those invoices,
orders or purchase orders
3. Documentation that you spent the funds to comply with applicable COVID-19 guidance
during your Covered Period
Included in
request?
In Borrower’s
name?
*
Reduction in gross receipts*
If you’re requesting Forgiveness on a second PPP Loan of $150,000 or less, you may be required to
submit documentation supporting of at least a 25% reduction in your gross receipts.
If so, you may submit one of the following:
1. Quarterly nancial statements for the business
• If your nancial statements are not audited, you must attest to their accuracy by signing
and dating the rst page of the nancial statement and initialing all other pages.
• If the nancial statements do not specically identify the line item(s) that constitute
gross receipts, you must annotate which line item(s) constitute gross receipts.
2. Annual IRS income tax lings for the business
• You must submit these if you’re using an annual reference period.
• If you have not yet led a federal tax return for 2020, you must ll out the return forms,
compute the relevant gross receipts value and sign and date the return, attesting that
you used the same values in your gross receipts computation that you will le in your
business tax return.
3. Quarterly or monthly bank statements for the business showing deposits from the
relevant quarters
• If it isn’t clear, you must annotate which deposits listed on the bank statement constitute
gross receipts (such as payments for goods sold and services) and which do not (such as
capital infusions).
**
May also be in Borrower’s registered DBA or trade name.
*
We
also recommend you review the summary of costs Eligible for Fo
rgiveness in t
he Loan Forgi
veness Application Instructions for Borrowers. Check the latest
SBA Forgiveness Forms and Instructions at SBA.gov or Treasury.gov.
PAYCHECK PROTECTION PROGRAM
SUPPORTING DOCUMENT INSTRUCTIONS
®
IMPORTANT INFORMATION: J.P. Morgan and Chase are marketing names for certain businesses of JPMorgan Chase & Co. (“JPMC”) and its subsidiaries
worldwide. Products and services may be provided by commercial bank aliates, securities aliates or other JPMC aliates or entities.
This document was created for informational purposes only and should not be considered advice. You should seek individualized advice from nancial,
legal, tax and other professional advisors that take into account all of the particular facts and circumstances of the Client’s own situation. In no event
shall JPMC or any of its directors, ocers, employees or agents be liable for any use of, for any decision made or action taken in reliance upon or for any
inaccuracies or errors in, or omissions from information in this content. We are not acting as any Client’s agent, duciary or advisor, including, without
limitation, as a Municipal Advisor under the Securities and Exchange Act of 1934. JPMC assumes no responsibility or liability whatsoever to any Client
with respect to such matters.
NOTICE: The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion,
national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s
income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection
Act. The federal agency that administers compliance with this law concerning this credit is the Consumer Financial Protection Bureau, 1700 G Street NW.,
Washington, DC 20006.
All loans are subject to other requirements and availability of funds under the SBA program.
JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender.
©2021 JPMorgan Chase & Co.
Last updated June 9, 2021
