SBA Loan Forgiveness Application

3508S Form Qualification

You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using SBA Form 3508S only if the total PPP loan amount you received from your Lender was $150,000 or less. However, a borrower that, together with its affiliates, received PPP loans totaling $2 million or more cannot use this form. If you are not eligible to use this form, please continue to next question in this form as you must apply for forgiveness of your PPP loan using SBA Form 3508 or 3508EZ.

Checklist for Using SBA Form 3508EZ

You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using the SBA Form 3508EZ if your PPP loan amount is more than $150,000 and you can check at least one of the two boxes below.

1. The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period. (For purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000.);

AND

The 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. • Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020 (or, for a PPP loan made after December 27, 2020, the last day of the Covered Period). • Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details.

2. The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period compared to the most recent full quarter before the Covered Period. (For purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000,);

AND

The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 (or, for a PPP loan made after December 27, 2020, requirements established or guidance issued between March 1, 2020 and the last day of the Covered Period) by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

By selecting yes to at least one of the above, you will be routed to the SBA Form 3508EZ application.

By answering no to all of the above, you will be routed to the SBA Form 3508 full application

LOAN FORGIVENESS APPLICATION INSTRUCTIONS FOR BORROWERS

To apply for forgiveness of your Paycheck Protection Program (PPP) loan, you (the Borrower) must complete this application as directed in these instructions.

This application has the following components:
(1) PPP Schedule A
(2) the PPP Loan Forgiveness Calculation Form
(3) the (optional) PPP Borrower Demographic Information Form

A completed PPP Schedule A Worksheet is required to complete this application. However, First Financial Bank is not requiring the PPP Schedule A Worksheet to be submitted unless a Paycheck Protection Program loan is selected for review by the SBA. If a request is received, First Financial will contact the Borrower for a copy of this document. Please retain a copy of the PPP Schedule A Worksheet for your records.

Need Help: Select this link to reference the SBA Paycheck Protection Program Loan Forgiveness Application for detailed instructions on each of these forms.

PPP Schedule A

PPP Schedule A Worksheet, Table 1 Totals

Need Guidance: Click here for Summary of Costs Eligible for Forgiveness

Lines 1 through 5: Enter the amounts from PPP Schedule A Worksheet Table as directed

Line 1. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1

Line 2. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1

Must be Whole Number, no decimal.

If the average annual salary or hourly wage for each employee listed on the PPP Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Covered Period was at least 75% of such employee's average annual salary or hourly wage between January 1, 2020 and March 31, 2020.

Depending upon selection, Line 3 may default to 0 and not be available for input.

Line 3. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1.

PPP Schedule A Worksheet, Table 2 Totals

Line 4. Enter Cash Compensation (Box 4) from PPP Schedule A Worksheet, Table 2

Line 5. Enter Average FTE (Box 5) from PPP Schedule A Worksheet, Table 2

Must be Whole Number, no decimal.

Non-Cash Compensation Payroll Costs During the Covered Period of the Alternative Payroll Covered Period

Line 6: Total amount paid or incurred by Borrower for employer contributions for employee health insurance

Enter the total amount paid by the Borrower for employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after tax contributions by employees. Do not add employer health insurance contributions made on behalf of a self-employed individual, general partners, or owner-employees of an S-corporation, because such payments are already included in their compensation.

Line 7. Total amount paid or incurred by Borrower for employer contributions to employee retirement plans

Enter the total amount paid by the Borrower for employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees. Do not add employer retirement contributions made on behalf of a self-employed individual or general partners, because such payments are already included in their compensation.

Line 8. Total amount paid or incurred by Borrower for employer state and local taxes assessed on employee compensation

Enter the total amount paid by the Borrower for employer state and local taxes assessed on employee compensation (e.g., state unemployment insurance tax); do not list any taxes withheld from employee earnings.

Compensation to Owners

Line 9. Total amount paid to owner-employees/self-employed individual/general partners:

This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. If there is more than one individual included, attach a separate table that lists the names of and payments to each.

Enter any amounts paid to owners (owner-employees, a self-employed individual, or general partners). For Borrowers using a 24-week Covered Period, this amount is capped at $20,833 (the 2.5-month equivalent of $100,000 per year) for each individual or the 2.5-month equivalent of their applicable compensation in 2019, whichever is lower. For Borrowers using an 8-week Covered Period, this amount is capped at $15,385 (the eight-week equivalent of $100,000 per year) for each individual or the eight-week equivalent of their applicable compensation in 2019, whichever is lower.

Total Payroll Costs

Line 10. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9)

Full-Time Equivalency (FTE) Reduction Calculation

If you satisfy any of the following three criteria, select yes within appropriate box, skip lines 11 and 12, and enter 1.0 on line 13; otherwise, complete lines 11, 12, and 13:

No reduction in employees or average paid hours: If you have not reduced the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period

FTE Reduction Safe Harbor 1: If you were unable to operate between February 15, 2020, and the end of the Covered Period at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19

FTE Reduction Safe Harbor 2: If you satisfy FTE Reduction Safe Harbor 2 (see PPP Schedule A Worksheet)

Depending on above selections, Lines 11-12 may default to 0 and not be available for input.

Line 11. Average FTE during the Borrower's chosen reference period

MUST BE WHOLE NUMBER, no decimal. Enter the Borrower’s total average weekly full-time equivalency (FTE) during the chosen reference period. For purposes of this calculation, the reference period is, at the Borrower’s election, either (i) February 15, 2019 to June 30, 2019; (ii) January 1, 2020 to February 29, 2020; or (iii) in the case of seasonal employers, either of the preceding periods or any consecutive 12-week period between May 1, 2019 and September 15, 2019. For each employee, follow the same method that was used to calculate Average FTE on the PPP Schedule A Worksheet. Sum across all employees during the reference period and enter that total on this line. The calculations on lines 11, 12, and 13 will be used to determine whether the Borrower’s loan forgiveness amount must be reduced based on reductions in full-time equivalent employees, as required by the statute. Specifically, the actual loan forgiveness amount that the Borrower will receive may be reduced if the Borrower’s average weekly FTE employees during the Covered Period (or the Alternative Payroll Covered Period) was less than during the Borrower’s chosen reference period. The Borrower is exempt from such a reduction, and should skip lines 11 and 12, if any of the three criteria listed on PPP Schedule A under Full-Time Equivalency (FTE) Reduction Calculation has been met.

Line 12. Total Average FTE (add lines 2 and 5)

Line 13. FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if FTE Safe Harbor is met

Divide line 12 by line 11 (or enter 1.0 if any of the three criteria listed on PPP Schedule A under Full-Time Equivalency (FTE) Reduction Calculation has been met). If more than 1.0, enter 1.0. Enter this amount on line 7 of the Loan Forgiveness Calculation Form.

Total Harbor Calc

Line 13 Calculation 12/11

LOAN FORGIVENESS APPLICATION INSTRUCTIONS FOR BORROWERS

Need Help: Select this link to reference the SBA Paycheck Protection Program Loan Forgiveness Application for detailed instructions on each of these forms.

PPP Loan Forgiveness Application Form

PPP Borrower & Loan Detail

Need Help Accessing the Lender PPP Loan Number, Click Here!

Lender PPP Loan Number

Click Above Link in Need Help section for examples on where you can access this number.

Employees at Time of Loan Application

Must be whole number, no decimals and should match the number of employees input on the Paycheck Protection Program Application.

Employees at Time of Forgiveness Application

Must be whole number, no decimals and should reflect current number of employees

Select Number of Days in Covered Period, we will create the Covered Period Term for you.

The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the Borrower that is at least 56 days following the date of loan disbursement and not more than 168 days after the date of loan disbursement. For example, if the Borrower received their PPP loan proceeds on Monday, April 20, 2020, the first day of the Covered Period is Monday, April 20, 2020 and the final day of the Covered Period is any date selected by the Borrower between Sunday, June 14, 2020 and Sunday, October 4, 2020.

If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million, check here

Yes

PPP Loan Draw

Forgiveness Amount Calculation:

Payroll and Nonpayroll Costs

Line 1. Payroll Costs (enter the amount from the PPP Schedule A, line 10)

NOTE: For lines 2-8, you are not required to report payments that you do not want to include in the forgiveness amount.

Line 1. Payroll Costs

Line 2. Business Mortgage Interest Payments

Enter the amount of business mortgage interest payments during the Covered Period for any business mortgage obligation on real or personal property incurred before February 15, 2020. Do not include prepayments.

Line 3. Business Rent or Lease Payments

Enter the amount of business rent or lease payments for real or personal property during the Covered Period, pursuant to lease agreements in force before February 15, 2020.

Line 4. Business Utility Payments