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Paycheck Protection Program
PPP Loan Forgiveness Application Form 3508S Revised July 30, 2021
2. 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.
3. Employer state and local taxes paid by the Borrower and assessed on employee compensation (e.g., state
unemployment insurance tax), excluding any taxes withheld from employee earnings.
Owner Compensation: Any amounts the Borrower paid to owners (owner-employees (with an ownership stake of 5% or
more), aself-employed individual, or general partners). For each individual owner in total across all businesses, this
amount iscapped at (a) $20,833 (the 2.5-month equivalent of $100,000 per year), or (b) the 2.5-month equivalent of the
individual’s applicable compensation in the year that was used to calculate the loan amount (2019 or 2020), whichever is
lower. If Borrower applied for the loan using SBA Form 2483-C or 2483-SD-C, owner compensation includes proprietor
expenses (business expenses plus owner compensation). Proprietor expenses equal the difference between the Borrower’s
gross income and employee payroll costs. The Borrower’s proprietor expenses are capped at (a) $20,833 (the 2.5-month
equivalent of $100,000 per year), or (b) the 2.5-month equivalent of the borrower’s gross income in the year that was used
to calculate the loan amount (2019 or 2020), whichever is lower.
Payroll costs are considered paid on the day that paychecks are distributed or that the Borrower originates an ACH credit
transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid
during the Borrower’s last pay period of the Covered Period are eligible for forgiveness if paid on or before the next regular
payroll date. Otherwise, payroll costs must be paid during the Covered Period. Count payroll costs that were both paid and
incurred only once. Include only payroll costs for employees whose principal place of residence is in the United States. For
information onwhat qualifies as payroll costs, see SBA’s interim final rule posted on January 6, 2021 (86 FR 3692), as amended
by SBA’s interim final rule posted on March 18, 2021 (86 FR 15083). For information on what qualifies as payroll costs for a
Borrower that applied for the loan using SBA Form 2483-C or 2483-SD-C, see SBA’s interim final rule on loan amount
calculation and eligibility posted on March 3, 2021 (86 FR 13149), as amended by SBA’s interim final rule posted on March 18,
2021 (86 FR 15083).
Requested Loan Forgiveness Amount: Enter the total amount of your PPP loan that is eligible for loan forgiveness. This
amount isthe “Amount of Loan Spent on Payroll Costs” plus any amount spent on eligible nonpayroll costs (described below)
minus any required reductions (described below), up to the principal amount of the PPP loan.
Nonpayroll Costs: Eligible nonpayroll costs consist of:
a. covered mortgage obligations: payments of mortgage interest (not including any prepayment or payment of principal) on any
business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest
payments”);
b. covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force
before February 15, 2020 (“business rent or lease payments”);
c. covered utility payments: business payments for a service for the distribution of electricity, gas, water, telephone,
transportation, or internet access for which service began before February 15, 2020 (“business utility payments”);
d. covered operations expenditures: payments 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 of tracking of supplies, inventory, records, and expenses;
e. covered property damage costs: costs related to property damage and vandalism or looting due to public disturbances that
occurred during 2020 that were not covered by insurance or other compensation;
f. covered supplier costs: expenditures made to a supplier of goods for the supply of goods that are essential to the operations of
the Borrower at the time at which the expenditure is made, and made pursuant to a contract, order, or purchase order in effect
prior to the beginning of the Covered Period (for perishable goods, the contract, order, or purchase order may have been in
effect before or at any time during the Covered Period); and
g. covered worker protection expenditures: operating or capital expenditures that facilitate the adaptation of the business
activities ofentityan to comply with the requirements established or guidance issued by the Department of Health and
Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent
requirements established or guidance issued by a State or local government, during the period starting March 1, 2020 and
ending on the date on which the national emergency declared by the President with respect to the Coronavirus Disease 2019
(COVID-19) expires related to maintenance standards for sanitation, social distancing, or any other worker or customer
safety requirement related to COVID-19, but does not include residential real property or intangible property.
Eligible nonpayroll costs cannot exceed 40% of the total forgiveness amount. An eligible nonpayroll cost must be either paid
during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the
billing date is after the Covered Period. Count nonpayroll costs that were both paid and incurred only once.
FTE and Salary/Wage Reductions: Borrowers that received a PPP loan of more than $50,000 and Borrowers of $50,000 or less that
SBA Form 3508S (07/21)
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