Recommended Supporting Documents

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The following documents are the types of supporting documentation that borrowers may need to submit with a PPP loan forgiveness application.

The information contained in this page is based on laws, rules, regulations, and related guidance with respect to the Paycheck Protection Program, including guidance issued by the U.S. Small Business Administration (SBA) on June 26, 2020. We will periodically update this information, so please check back often. You may even want to consider bookmarking this page.

On June 5, 2020, the “Paycheck Protection Program Flexibility Act” (Flexibility Act) was passed and makes various changes to the PPP. The Flexibility Act aims to provide small businesses with more time to spend loan funds and qualify for loan forgiveness.

In the event of any discrepancies between the information on this site and the SBA’s site, please follow official SBA guidance.

Payroll

Eligible Cost
Recommended Supporting Documents

Cash Compensation

[see following notes on payroll documents]

  • Payroll report from third-party provider (such as ADP®, etc.);

Or each of these:

  • Payroll tax form (such as Form 941), plus state quarterly wage reporting and unemployment insurance filing, and 
  • Proof of payment (e.g. bank statement), and
  • Self-prepared payroll report or schedule

Please provide a consolidated payroll register with summary figures from all paycheck dates in the covered period selected.

Reports above must include company totals and clearly list employer-paid state and local taxes.

Employer contributions for employee health insurance and employee retirement plans
  • Account statements from insurance or plan administrator verifying eligible payments or proof of payment

Average full-time equivalency (FTE) for Form 3508

[see following note on FTE]

  • FTE report showing average number of FTE during one of these periods:
    • February 15, 2019 to June 30, 2019; or 
    • January 1, 2020 to February 29, 2020; or 
    • For a seasonal employer, select a period above or any consecutive 12-week period May 1, 2019 to September 15, 2019
Average full-time equivalency (FTE) for Form 3508EZ
  • FTE report showing average number of FTE employees on Jan 1, 2020 and at the end of covered period selected.

For Form 3508EZ, an FTE report is required if you met the following conditions: You 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; and you 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.

Non-Payroll

Eligible Cost
Recommended Supporting Documents
Business Mortgage Interest Payments, and Business Debt Interest Payments
  • Lender/bank statements, verifying eligible payments – showing interest portion of payments; include statement covering Feb 15, 2020

Or

  • Proof of payment, showing interest portion
Business Rent or Lease Payments
  • Rent/lease statements verifying eligible payments; include statement covering Feb 15, 2020

Or

  • Copy of rent or lease agreement and proof of payment
Business Utility Payments
  • Copy of invoices covering Feb 15, 2020, and receipts, cancelled checks, or account statements verifying those eligible payments, include statement covering Feb 15, 2020

Or

  • Invoices and proof of payment

Documents submitted should include all periods overlapping the 24-week covered period (or 8-weeks if selected).

While the bank may have some of these documents on file, the SBA requires you, as the borrower, to supply the documents to validate your expenses.

Notes on payroll documents:

Payroll Reports should include all periods overlapping the 24-week covered period (or 8-weeks if selected), and show figures for each of the following eligible costs:

  • Cash compensation;
  • Employer contributions for employee health insurance;
  • Employer contributions to employee retirement plans; and 
  • Employer state and local taxes assessed on employee compensation.

It is preferred if the report shows separate cash compensation figures for: 

  • Employees who received compensation at an annualized rate <=$100,000 for all pay periods in 2019; and 
  • Employees who received compensation at an annualized rate >$100,000 for all pay periods in 2019
    [For Form 3508EZ, there is no need to separate employees by 2019 compensation level.]

This detail helps Wells Fargo validate the line item figures shown on the forgiveness application forms.  

Cash Compensation:

  • Eligible cash compensation includes: gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave), and allowances for dismissal or separation.  This may include bonus; hazard pay; and salaries to furloughed employees.
  • Do not include compensation in excess of an annual salary of $100,000 annualized, as prorated for the covered period.  Therefore, the payroll schedule should show no employee with more than $46,154 in compensation if selecting the 24-week period (or $15,385 for the 8-week period, if eligible and selected).
  • Do not include payments to independent contractors, or compensation to employees whose principal place of residence is outside the US; or qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act.

Employer-paid state and local taxes assessed on employee compensation:

  • Payroll reports should also show total amount paid by the borrower for employer state and local taxes assessed on employee compensation (e.g., SUI - state unemployment insurance tax).

Note on full-time equivalency (FTE):

FTE counts both full-time (FT) and part-time (PT) employees. An FT employee is counted as 1.0 FTE, and a PT employee is counted by average number of hours per week divided by 40. For example, a PT employee working 32 hours would count as 0.8 FTE. SBA also offers a simplified method that assigns all PT employees as 0.5, if that is preferable.

Additional information on PPP loan forgiveness 

More information on SBA PPP loan forgiveness can be found on the SBA site. Instructions for PPP Loan Forgiveness Application Form 3508 and Form 3508EZ, including details on required documents, can be found on the following pages:

PPP Loan Forgiveness Application Form 3508 instructions

PPP Loan Forgiveness Application Form 3508EZ instructions

If you received a PPP loan through Wells Fargo, please do not attempt to submit a PPP loan forgiveness application downloaded from the SBA site. All forgiveness applications for Wells Fargo PPP loans must be submitted using the Wells Fargo PPP loan forgiveness online application, accessible through Wells Fargo Business Online®, or the Commercial Electronic Office® (CEO®). We will notify you once the online application becomes available.

Loan Forgiveness Center

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