PPP Forgiveness Request Glossary

Your Business can only qualify for Forgiveness on a second PPP loan if it experienced at least a 25% reduction in gross receipts between comparable periods in 2019 and 2020. You will need to provide documentation to show the 25% reduction in gross receipts when you request forgiveness if your second PPP loan is $150,000 or less. If your PPP loan amount is greater than $150,000, you will have provided this documentation in your loan application.

See SBA Form 3508.

See SBA Form 3508EZ.

See SBA Form 3508S.

See IRS Form 941.

A network that coordinates electronic payments and automated money transfers; a way to move money between banks without using paper checks, wire transfers, credit card networks or cash. See also Payroll costs.

Exists when 1 business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses. You’ll need to let us know if your Business, together with its affiliates, received PPP loans that totaled more than $2 million. For more information, see the SBA affiliation rules as they relate to PPP. See also PPP.

A rate of return for a period less than 1 year but calculated as if the rate were for a full year. You’ll need to include the annualized compensation (compensation for the full year) for employees on the SBA’s PPP Schedule A Worksheet, Tables 1 and 2. See also PPP Schedule A Worksheet.

The page where you can track the status of your PPP Forgiveness request when you sign in to your Chase Business online dashboard.

Refers to approval. The SBA makes the decision about authorizing your requested PPP Forgiveness amount.

You must be an authorized representative—an individual(s) who's authorized to take actions on behalf of the Business that are binding and enforceable against the Business—to complete the PPP Forgiveness request.

See Full-time equivalency (FTE).

The Business that received PPP loan funds; an authorized representative of the Borrower/Business must complete and submit the PPP Forgiveness request.

Interest payments on any business mortgage obligation on real or personal property that was paid or incurred during the Covered Period. These obligations should have existed before February 15, 2020. Don't include prepayments or payments on principal. You’ll need to upload documents verifying these payments, which may include bank or mortgage statements. If you use the 3508S form, you are not required to submit documentation for business mortgage interest payments as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Incurred.

Payments on business rent obligations on real or personal property under a lease agreement paid or incurred during the Covered Period. These obligations should have existed before February 15, 2020. You’ll need to upload documents verifying these payments, which may include bank statements or rent/lease obligations. If you use the 3508S form, you are not required to submit documentation for business rent or lease payments as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Incurred.

Taxpayer identification number. Your TIN may be an employer identification number (EIN) or your Social Security number (SSN).

Payments for the distribution of electricity, gas, water, transportation, telephone or internet access on services paid or incurred during the Covered Period. These services should have existed before February 15, 2020. You’ll need to upload documents verifying these payments, which may include copies of invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for business utility payments as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Incurred.

Coronavirus Aid, Relief and Economic Security Act (CARES Act or the Act). The Act, signed into law on March 27, 2020, included appropriations for the initial SBA Paycheck Protection Program.

The sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave) paid or incurred during the Covered Period; for each employee, the total amount of cash compensation eligible for Forgiveness may not exceed an annualized salary of $100,000. Cash compensation for owner-employees, self-employed individuals or general partners is capped at $46,154 (for a 24-week Covered Period) or at $15,385 (for an 8-week Covered Period). See also Incurred.

The unique number Chase gave your original PPP loan application after you submitted it. We’ll populate the loan number for you.

The comparison period in which total average FTE is calculated, either: February 15, 2019 to June 30, 2019; or January 1, 2020 to February 29, 2020; for seasonal employers, either of these 2 periods or a consecutive 12-week period between February 15, 2019 and February 15, 2020.

See Business mortgage interest payments.

Payments for any business software or cloud computing service that facilitates business operations; product or service delivery; the processing, payment or tracking of the following: payroll expenses, human resources, sales and billing functions; or accounting of tracking of supplies, inventory, records and expenses. If you include this cost in your forgiveness request, you’ll need to upload documents verifying these payments, which may include copies of invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for covered operations expenditures as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit.

The time period you’ll use to calculate all eligible payroll and non-payroll costs paid or incurred from the date the SBA authorized your PPP loan amount. 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 8 weeks following the date of loan disbursement and not more than 24 weeks 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.

Costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 and weren’t covered by insurance or other compensation. If you include this cost in your Forgiveness request, you’ll need to upload documents verifying these payments, which may include copies of invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for covered property damage costs as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit.

See Business rent or lease payments.

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). If you include these costs in your Forgiveness request, ou’ll need to upload documents verifying these payments, which may include copies of contracts, orders or purchase orders in effect at any time before the Covered Period (except for perishable goods); invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for covered supplier costs as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit.

See Business utility payments.

Operating or capital expenditures that facilitate the adaptation of business activities to comply with the requirements established or guidance issued by the U.S. government 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. If you include these costs in your Forgiveness request, ou’ll need to upload documents verifying these payments, which may include copies of invoices; canceled checks/bank statements; or other documents showing that the Borrower used these expenditures to comply with applicable COVID-19 guidance during the Covered Period. If you use the 3508S form, you are not required to submit documentation for covered worker protection expenditures as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Borrower; Covered Period.

See Doing Business As (DBA).

The period of time after loan disbursement during which interest accrues, but no payments of principal or interest on your PPP loan are due. If the Business applies for Forgiveness within 10 months after the end of its Covered Period, then no payments are due until the SBA remits payment of a Forgiveness amount or determines that no Forgiveness is authorized. Note that no payments will be due at all if the SBA authorizes your full loan amount for Forgiveness. If the Business fails to submit a complete request for Forgiveness within 10 months after the end of the Covered Period, the deferral period is 10 months after the end of the maximum 24-week Covered Period.

A voluntary form in the PPP Forgiveness request that asks for veteran, gender, race and ethnicity data about each of the Borrower’s Principals; data is collected for program reporting purposes only. Disclosure is voluntary and will have no bearing on the loan Forgiveness decision. See also Principals.

You’ll need to upload documentation verifying your payroll costs, non-payroll costs and reduction in gross receipts, if applicable. Please organize your documents by payroll and non-payroll costs (instead of uploading 1 file that contains both). Please refer to the SBA Form 3508S, 3508EZ or 3508 instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Non-payroll costs; Payroll costs; Reduction in gross receipts.

When the Business operates under a name other than its legal name; also known as a "trade name," "fictitious name" or "assumed name." We’ll populate your Business’s DBA for you using the name you provided in your PPP loan application.

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act) was enacted and extended the authority to make PPP loans through March 31, 2021. The Act revised certain PPP requirements and permits second PPP loans. See also PPP.

See Non-payroll costs.

See Payroll costs.

You’ll need to separately list the names of your employees on the SBA’s PPP Schedule A Worksheet. Please don’t include the names of independent contractors, owner-employees, self-employed individuals or general partners, but you’ll need to tell us their costs on our PPP Schedule A. See also PPP Schedule A; PPP Schedule A Worksheet.

Non-cash compensation paid or incurred during the Covered Period that you’ll need to enter in this request if applicable. This includes the total amount paid by the Borrower for employer contributions for employee group health, life, disability, vision, or dental insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excludes any pre-tax or after-tax contributions by employees. This does not include contributions for these benefits 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. See also Incurred; Non-cash compensation.

Non-cash compensation paid or incurred during the Covered Period that you’ll need to enter in this request; enter the total amount paid by the Business, but don’t include any pre-tax or after-tax employee contributions. See also Incurred; Non-cash compensation.

You’ll need to provide the total number of employees the Business had when requesting PPP loan Forgiveness.

You’ll need to provide the total number of employees the Business had when it applied for a PPP loan.

The amount the SBA authorized for your PPP Forgiveness request. See also Loan Forgiveness.

The amount the SBA didn’t authorize for your PPP Forgiveness request. The Business is responsible for paying back any PPP loan funds that weren’t forgiven plus any accrued and unpaid interest. See also Loan Forgiveness.

The amount from your PPP loan that you’re asking the SBA to forgive.

The number of full-time equivalent employees your Business has; you’ll need to determine the Business’s average FTE during the Covered Period and enter it on the SBA’s Schedule A Worksheet.

Documents you can upload to support the average number of full-time equivalency (FTE) employees during the Covered Period. These documents may include personal tax filings, state quarterly business tax filings, individual employee wage reporting and unemployment insurance tax filings that you’ve reported or will report. See also Full-time equivalency (FTE).

Exempts your Business from loan Forgiveness reductions based on FTE employee levels if you document: (1) Any positions for which you made a good-faith, written offer to rehire an individual who was an employee on February 15, 2020 and you were unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020 for a PPP loan made before (a) December 27, 2020 or (b) the last day of the Covered Period, for a PPP loan made after December 27, 2020; (2) Any positions for which you made a good-faith, written offer to restore any reduction in hours, at the same salary or wages, during the Covered Period and the employee rejected the offer; and (3) Any employees who, during the Covered Period were fired for cause, voluntarily resigned or voluntarily requested and received a reduction of their hours. See also Full-time equivalency (FTE) reductions.

See Full-time equivalency (FTE) reduction Safe Harbor 1 & 2.

Exempts the Business from full-time equivalency (FTE) reductions if the Business, in good faith, is able to document that it was unable to operate between February 15, 2020 and the end of the Covered Period at the same level of activity as before February 15, 2020 due to COVID-19-related compliance with 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). See also Full-time equivalency (FTE) reductions.

Exempts the Business from full-time equivalency (FTE) reductions if the following conditions are met: (1) reduced FTE employee levels in the period beginning February 15, 2020 and ending April 26, 2020; and (2) then restored FTE employee levels in the Borrower’s pay period that included February 15, 2020 but not later than (i) December 31, 2020 for a PPP loan made before December 27, 2020 or (ii) the last day of the Covered Period for a PPP loan made after December 27, 2020. See also Full-time equivalency (FTE) reductions.

Used to determine whether the Business's loan Forgiveness amount must be reduced based on reductions in full-time equivalent employees, as required by the statute. Your Business may be exempt from FTE reductions if you meet any of the FTE reduction exceptions, if you qualify for Safe Harbor, if you didn’t reduce the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period, or if your PPP loan was less than $50,000 and you and your affiliates collectively did not have PPP loans greater than $2 million. See also Covered Period; Full-time equivalency (FTE) reduction Safe Harbor 1 & 2.

See PPP loan disbursement date.

See Employee.

Expenses the Business owes but hasn’t yet paid. You’ll need to verify the Business’s eligible payroll, non-payroll and non-cash compensation costs paid or incurred during the Business’s Covered Period. See also Non-cash compensation; Non-payroll costs; Payroll costs.

See Employee.

Also known as the "employer’s quarterly tax form." Employers use this form to report the number of employees receiving wages, tips and other compensation and those amounts.

If Borrowers are individuals with self-employment income and filed this tax form in 2019 or 2020, they’re required to upload it as part of their Forgiveness supporting materials. This may apply to sole proprietors, self-employed individuals, independent contractors and some single-member LLCs.

If Borrowers are individuals with self-employment income and filed this tax form in 2019 or 2020, they’re required to upload it as part of their Forgiveness supporting materials. This may apply to sole proprietors, self-employed individuals, independent contractors and some single-member LLCs.

If Borrowers are general partners and filed this tax form in 2019 or 2020, they’re required to upload it as part of their Forgiveness supporting materials.

The financial institution where you received your PPP loan. Chase is your PPP loan lender.

Businesses may have their PPP loans fully or partially forgiven if the funds were used for eligible payroll and non-payroll costs according to SBA guidelines. See also Non-payroll costs; Payroll costs.

This number should match the Borrower’s business activity code provided on IRS income tax filings, if applicable. This number will be prepopulated for you in your Forgiveness request using the NAICS code submitted in your PPP loan application.

Employer contributions to group health care coverage, retirement plans and state and local taxes assessed on employee compensation.

Eligible costs and obligations consisting of business mortgage interest, rent or lease, utilities, covered operations expenditures, covered property damage costs, covered supplier costs and covered worker protection expenditures paid or incurred during the Covered Period. Up to 40% of your funded PPP loan amount may be used for eligible non-payroll costs. See also Incurred.

See Documentation/Document upload.

See Employee.

At least 60% of your funded PPP loan amount must be used for eligible payroll costs to be eligible for full loan Forgiveness. See also Documentation/Document upload; Payroll costs.

Consist of compensation to your employees (whose principal place of residence is the United States) in the form of: (1) salary, wages, commissions or similar compensation; (2) cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips; (3) payment for vacation, parental, family, medical or sick leave; (4) allowance for separation or dismissal; (5) payment for the provision of employee benefits consisting of group health care or group life, disability, vision or dental insurance, including insurance premiums, and retirement; (6) payment of state and local taxes assessed on compensation of employees; (7) for an independent contractor or sole proprietor: wages, commissions, income or net earnings from self-employment or similar compensation; (8) Payroll costs that are qualified wages taken into account in determining the Employer Retention Credit are not eligible for loan Forgiveness. See also Cash compensation; Covered Period; Non-cash compensation.

See Documentation/Document upload.

The SBA’s Paycheck Protection Program was established by the CARES Act on March 27, 2020 to provide economic relief to businesses and other entities impacted by the COVID-19 pandemic. A subsequent relief package called the Economic Aid Act was enacted on December 27, 2020. See also Economic Aid Act.

See Demographic information.

The section of the full SBA Form 3508 used to calculate eligible payroll and non-cash compensation to employees. See also Non-payroll costs; Payroll costs.

The section of the SBA Form 3508 used to calculate eligible payroll and non-cash compensation to employees. See also Non-payroll costs; Payroll costs.

The section on the full SBA Form 3508 where you capture each employee’s cash compensation, average FTE and salary/hourly wage reductions (for employees who make $100,000 or less). Independent contractors, owner-employees, self-employed individuals or partners are not included in the Schedule A Worksheet, but you’ll need to document those costs, if they apply to the Business. See also Cash compensation; Full-time equivalency (FTE); Salary/hourly wage reduction.

On the SBA’s demographics form, the possible positions a principal may hold. Example positions include self-employed individual, independent contractor, sole proprietor, general partner, owner, officer, director, member or key employee. See also Principals.

The SBA has a specific definition for principals on its demographics form. Examples include self-employed individuals or contractors, officers, directors or individuals with ownership stakes in partnerships, corporations and limited liability companies. See SBA Form 3508S, Form 3508EZ or full Form 3508 for the SBA’s full definition of "principals." See also Principal position.

See Third-party payroll service providers.

Borrowers must retain all applications and documentation supporting their PPP loan application and Forgiveness request for 6 years after the date the loan is forgiven or repaid in full.

Only Borrowers who had second PPP loans of $150,000 or less are required to complete this section of the Forgiveness request. See also 25% reduction in gross receipts.

See Chosen reference period.

We may be in touch and ask you to provide additional information or documents before we submit your Forgiveness request to the SBA. You can always check the status of your Forgiveness request by signing in to Application Status. See also Application Status.

See Full-time equivalency (FTE) reduction Safe Harbor 1 & 2.

Salary or hourly wages may have been reduced during the Covered Period compared to salary and wages for employee(s) between January 1, 2020 and March 31, 2020. If the Business was able to restore its salary levels by December 31, 2020, it can avoid a corresponding reduction in its Forgiveness amount.

You can save your Forgiveness request and return to it if you need more time to gather information and documents.

Small Business Administration. This is the U.S. governmental agency administering the PPP loan application and PPP Forgiveness request.

The SBA’s PPP Loan Forgiveness Application including the Forgiveness Calculation Form, PPP Schedule A, PPP Schedule A Worksheet and PPP Borrower Demographic Information Form (Optional).

A shortened version of Form 3508 that can be used by self-employed individuals, independent contractors, sole proprietors and Businesses that didn’t reduce salary/hourly wages of any employee by more than 25% during the Covered Period and didn’t reduce the number of employees. You may be able to use Form 3508EZ if the Business was unable to operate due to COVID-19 and didn’t reduce salary/hourly wages of any employee by more than 25% during the Covered Period.

A simplified Forgiveness request for loans of no more than $150,000. SBA Form 3508S doesn’t require Borrowers to show the calculations used to determine their loan Forgiveness amount.

The unique number the SBA gave to your original PPP loan application once Chase submitted it to the SBA. We’ll populate the loan number for you.

See PPP Schedule A Worksheet.

If the Borrower is submitting a second PPP loan application, they must have used all their first PPP loan funds on eligible expenses prior to the disbursement of the second PPP loan. If the Borrower’s second PPP loan is more than $150,000, they must submit a loan Forgiveness application for their first PPP loan before (or simultaneously) with the loan Forgiveness application for the second PPP loan.

Companies that help employers administer and process payroll costs and tax obligations. Such a company may be referred to as a professional employer organization (PEO).

Employers must report employee tips, commissions and other compensation, typically on IRS Form 941; See also IRS Form 941.

The sum of cash and non-cash compensation made to employees during the Covered Period. See also Cash compensation; Non-cash compensation.

See Doing Business As (DBA).