One area of question and concern we have received regarding the PPP loan forgiveness is this:
“What documentation will I need to provide at the end of the 8-week period?”
That is a good question that deserves a good answer. Unfortunately, the SBA and Treasury Department have not provided any meaningful guidance so far as to what will be required. We will communicate any information that is published as soon as possible
Following is copied from the original Borrower Fact Sheet published when the program was first announced:
How can I request loan forgiveness?
You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments.
Citizens Bank suggests two things as you consider what records to keep and provide:
- When in doubt, document. Plan to provide every possible record of funding use: Payroll logs or journals, IRS reports, check stubs, check registers, utility bills, cancelled checks, etc. Your ultimate loan forgiveness depends on accurate and timely reporting.
- Consult your outside professionals such as CPA’s and attorneys. Citizens Bank will do all we can to give you good advice, but the burden of verification rests with the borrower. Be sure to gather as much expert advice as possible.