This Section is one of five sections, labeled Section A to Section E, that have been created to assist you in completing the initial PPP application on this site. Please use the navigation buttons at the bottom. If you need to update an existing application, or check your status, please click on the green button at the bottom of the Update / Status menu tab at the top.

Please do not start multiple applications - it delays the process!

Section D-1 – Application Details: Employers

For-profit employers have employees that receive an annual W-2 wage statement.   A for-profit employer can be one of many types of legal entities, including corporations, limited liability companies and partnerships, and general partnerships.  A for-profit employer can even be a sole proprietorship.

In cases where the owners are not paid as employees, but through compensation that is reported on a Schedule C, the PPP application for payroll can include both the employee compensation and the owners’ compensation, each limited to the $100,000 annual compensation discussed in Section C.

Loan Information Page

The application form has the following categories for Average Monthly Payroll (“AMP”) Costs:

  • Salary, Wage, Commission, or Similar Compensation
  • Payment of cash tip or equivalent
  • Payment for vacation, Parental, Family, Medical, or Sick Leave
  • Allowance for Dismissal or Separation
  • Payment required for the provisions of Group Health Care Benefits, including Insurance Premiums
  • Payment of any Retirement Benefit
  • Payment of State or local tax on the compensation of employees

The application form also requests Average Monthly Exclusions:

  • Compensation of an individual employee in excess of an annual salary of $100,000
  • Any compensation of an employee whose principal place of residence is outside of the United States
  • Qualified Sick Leave Wages
  • Qualified Family Leave Wages

Explanations of these categories can be found on the SBA website.   The sum of the categories for the Exclusions is subtracted from the sum of the AMP Costs for the Average Month Payroll, which is multiplied by 2.5 for the total loan amount.

The application also provides for the entry of:

Outstanding EIDL, Net of Advance (if Applicable):  The outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).​

 

If there is an entry for the EIDL loan made in this period can be added to the Average Monthly Payroll for the PPP forgivable loan.  The information about the EIDL is uploaded in Documents as Addendum B.

For each of the AMP Costs and Exclusions entered, and the EIDL, individual documentation is to be provided that substantiates the entry.

For monthly payroll, the SBA requires a list of each payday by employee.  Similar detail is required for each of the other categories and uploaded in the Documents section.  In addition, the quarterly 941 forms and annual 940 form are to uploaded.

The PPP also requires documentation on whether the applicant was in business on February 15, 2020.  One good way to provide this documentation is a list of employees and their pay for the month of February.