COVID-19: PPP & EIDL Loan Information

certifications

Forms 3508 and 3508EZ requires nine certifications:

  1. Forgiveness Amount is calculated correctly according to the form instructions and SBA regulations.
  2. If funds used for unauthorized purposes, the SBA may seek to recover loan amounts and/or civil or fraud charges.
  3. Borrower has accurately verified the payroll and non-payroll costs.
  4. Borrower has submitted required documentation as outlined in the form instructions.
  5. If forgiveness application is for a Second Draw PPP Loan, all of the First Draw PPP Loan amounts have been used on eligible expenses prior to the disbursement of the Second Draw PPP Loan.
  6. The information provided in the application is true and correct in all material respects.
  7. The tax documents submitted are consistent with those sent to the IRS.
  8. Borrower understands that the SBA may request additional information.
  9. If the Borrower checked the box for FTE Reduction Safe Harbor #1, the complied with the rules regarding the safe harbor rule. Form form 3508EZ:
  10. Borrower did not reduce any employees’ salary or hourly rates more than 25% during the Covered Period.
  11. Borrower was able to check at least ONE of the following two items:

Box One

  • Borrower did not reduce more than 25% the salary or hourly rate of any employees during the Covered Period compared to the preceding full quarter AND
  • Borrower 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, excluding any FTE Reduction Exceptions.

Box Two

  • Borrower did not reduce more than 25% the salary or hourly rate of any employees during the Covered Period compared to the preceding full quarter AND
  • Borrower was unable operate during the Covered Period at the same levels as before February 15, 2020 due to compliance issues involving COVID customer and employee safety guidance issued by the HHS, CDC, or OSHA.

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