Business (fewer than 500 employees) and Nonprofit Support

 

STAR PPP Loan Forgiveness Information

Thank you for putting your trust in STAR to obtain your PPP loan. We are here to help you with the forgiveness portion; however, we are not quite ready to accept forgiveness applications as we are awaiting additional SBA guidance. We know that obtaining forgiveness is extremely important and that you have many questions. Rest assured that STAR is working hard to make sure that your forgiveness process is as streamlined and seamless as possible.
 
STAR will send you an email as soon as you can submit your application for forgiveness under the SBA PPP loan program, along with instructions to get you started. In the meantime, we have included some information to help you prepare. This information will be updated regularly to incorporate the most recent SBA guidance as it is made available.
 
 
Some common questions you may have:
 
Q: What is my SBA PPP Loan Number?
A: Your SBA Loan Number and Lender Loan Number are the same and can be found at the top left hand corner on page 2 of your Promissory Note.
 
Q: What is my disbursement date?
A: The date your loan funds were deposited to your account.
 
Q: What documents will STAR require me to submit with my PPP Loan Forgiveness Application:
PPP Loan Forgiveness Calculation Form (starts on page 3 of the application)
PPP Schedule A (page 6 of the application)
 
Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:
 
  1. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees. 
  2. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
         i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
         ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. 
  3. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount (PPP Schedule A, lines (6) and (7)).
 
FTE: Documentation showing (at the election of the Borrower):
 
  1. the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019;
  2. the average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020 and February 29, 2020; or
  3. in the case of a seasonal employer, the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive twelve- week period between May 1, 2019 and September 15, 2019.
The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period.
 
Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.
 
  1. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.
  2. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through
    one month after the end of the Covered Period verifying eligible payments.
  3. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.

Forgiveness is not automatic and is subject to all terms and criteria contained in the SBA interim final rule(s) and program guidance.

 

 

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