FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
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loans may be entirely forgiven if spent for
the proper purposes primarily payroll
during the proper time period. Keep in
mind you will apply for forgiveness with
the lender who gave you your PPP loan. It
may use an online application form. There
are three PPP loan forgiveness applications:
• Form 3508
• Form 3508EZ
• Form 3508S
Form 3508S is a simplified form that previously
was available for loans of $50,000
or less. Now it covers loans of $150,000 or
less. It requires the borrower to:
• Describe the number of employees
retained due to the PPP loan;
• The estimated amount of the loan
proceeds spent on payroll; and
• The total amount of the loan.
Borrowers will have to certify they have
complied with the requirements of the
loan and retain records to prove compliance.
Employment related records must be
retained for four years while others must
be retained for three years.
We recommend considering opening a
separate bank account to deposit your PPP
funds and track expenditures.
How must I spend the money?
Similar to the first round of PPP, this
program is primarily intended to keep
employees including the business owner
or independent contractor on payroll and
to pay other specific expenses.
To obtain full forgiveness, borrowers will
need to spend at least 60% of loan proceeds
on qualified payroll expenses during
the covered period. Eligible nonpayroll
costs cannot exceed 40 percent of the loan
forgiveness amount. The list of eligible
nonpayroll expenses has been expanded
and now includes:
• Rent
• Mortgage interest
• Utilities
• Covered operations expenditure*
• Covered property damage cost*
• Covered supplier cost*
• Covered worker protection expenditure*
Covered operations expenditures
means payment for any business software
or cloud computing service that
facilitates business operations, product or
service delivery, the processing, payment,
or tracking of payroll expenses, human
resources, sales and billing functions, or
accounting or tracking of supplies, inventory,
records and expenses.
Covered property damage cost means
a cost related to property damage and vandalism
or looting due to public disturbances
that occurred during 2020 that was not covered
by insurance or other compensation.
Covered supplier cost means an expenditure
made by an entity to a supplier
of goods for the supply of goods that:
• Are essential to the operations of the
entity at the time at which the expenditure
is made; and
• Is made pursuant to a contract, order,
or purchase order — i in effect at any time
before the covered period with respect to
the applicable covered loan; or ii with respect
to perishable goods, in effect before
or at any time during the covered period.
Covered worker protection expenditure
means an operating or a capital
expenditure to facilitate the adaptation
of the business activities of an entity to
comply with requirements established or
guidance issued by the Department of
Health and Human Services, the Centers
for Disease Control and Prevention, the
Occupational Safety and Health Administration
or any equivalent requirements
established or guidance issued by a state
or local government, during the period
beginning on March 1, 2020, and ending
the date on which the national emergency
declared by the president under the
National Emergencies Act 50 U.S.C. 1601
et 8 seq. with respect to the coronavirus
disease 2019 COVID-19 expires related to
the maintenance of standards for sanitation,
social distancing or any other worker >>
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