On May 18th, the SBA and Treasury came out with the long awaited PPP Forgiveness application with some preliminary guidance.

Then, two days later on May 2o, they issued “final” guidance.  They may release even more guidance as we move forward, but we seem to have a good start, so let’s dive in.

If you have employees, you can visit the following sites to get more information:

How to Fill Out Your PPP Forgiveness Application Form

May 22 PPP Final Interim Rules Provide Further Guidance And Some Surprises


First, we will define two important terms:

PPP Loan Disbursement Date: This is the date that the loan funds showed up in your bank account, which is very important because it starts your Covered Period.

Covered Period:  The eight-week period beginning on the date you received the loan funds and ending 8 weeks later.

Second, let’s look at some important information:

If you want to include utilities, mortgage or loan interest, or lease payments in the forgiveness, they had to be in place before February 15th.  There will be no adding fancy cell phone packages or office spaces to up your forgiveness amount.

The applications cannot be submitted until after the covered period ends, but should be submitted as soon as possible.  You may need to wait in order to get your next months utility bills to factor those costs in.

Once your PPP Forgiveness Application has been submitted to your lender, they have 60 days to review and request payment from the SBA, who then has an additional 90 days to review and then remit the appropriate forgiveness amount to the lender.  After the SBA has made their decision, the lender is responsible for notifying you.  This means that you could be waiting for up to 5 months to receive confirmation that your loan was forgiven.

Finally, you will need to submit the required documentation listed on page 10, and they also give you a list of documents to keep “for six years after the date the loan is forgiven or repaid in full.”

Now down to business. 

The application has 5 parts.

  1. The Application (pages 1-4)
  2. Schedule A (pages 5-6)
  3. Schedule A Worksheet (pages 7-9)
  4. List of required documents  (page 10)
  5. OPTIONAL PPP Borrower Demographic Information Form (page 11)


This is the last page, but I encourage you to do this first.  Everyone hates to answer these types of questions and there is quite a bit of skepticism over what is really done with the data.  I think and hope the SBA will utilize these stats to see who this program has helped and to find out which groups have been left behind, which in turn could help them develop a better program the next time a need arises.

Schedule A Worksheet and Schedule A

Self-Employed individuals, independent contractors, owner-employees should not have to fill out Schedule A Worksheet or lines 1-8 on Schedule A, so you can move directly to Schedule A number 9.  This number was your net income from self-employment last your, which can be found by dividing the amount on line 31 of  your 2019 Schedule C by 52 and then multiplying that number by 8 (up to $15,385).  Since you did not have to fill in lines 1-8, line 10 is the same number as line 9.  Lines 11-13 will also not apply, so you can move on to the actual application.

PPP Application

After you fill in the necessary business information, you can copy the information from Schedule A Line 10 on Line 1.

Lines 2-4 can get a bit complicated if you do not have an office space.  If you have an office space, you include costs that are either paid or incurred during the covered period, just remember not to double count expenses to try and get extra forgiveness.  If you have a home office, and it was set up and in use as a deduction on your 2019 taxes, you can use that formula to figure out how much mortgage interest, lease payments, or utilities to input on these lines.  One thing to keep in mind here is that if you use PPP to pay a portion of these home office expenses, you most likely will not be able to deduct that portion on your 2020 taxes.

Line 5 does not apply to those without employees.

Line 6 is the total of Lines 1-4, and Line 8 should be the same as line 6.

Line 9 is the total amount of your loan.

Line 10 is the value of line 1, which is your “owner compensation replacement” divided by 0.75

Line 11 is just the smallest number from Lines 8,9, and 10

Here Come the Certifications

Check and double check your math and information, so that you can certify that everything on your application is right, and that you are using them for the correct purposes.  We all remember the hullabaloo that ensued with the last PPP certification.   

And there you have it, your Self-Employed Payroll Protection Program Loan Forgiveness Application is complete.  

If you need a deeper dive with examples, you can visit this article on Forbes.

Also, if you need information on PPP Forgiveness with employees you can visit the links below:

How to Fill Out Your PPP Forgiveness Application Form

May 22 PPP Final Interim Rules Provide Further Guidance And Some Surprises


Disclaimer:  Please note that we are not CPA’s, so anything you see on our blog is just for your information and should not be considered advice as we do not know your specific needs or issues.  Please consult your CPA or Advisor.

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Trackbacks & Pingbacks

  1. […] owners in need, the criticism of the program has started to die down and now firms are starting to figure out how to attain forgiveness.  This new bill will give business owners more flexibility as they try to turn this loan into a […]

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