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Payment Protection Program – Required Documents To Process the SBA Paycheck Protection Program loan application, please

submit:

Application • Paycheck Protection Program Application – SBA Form 2483

Business Entity Documentation

• Articles of Incorporation/Organization for each applicant/entity • Bylaws/Operating Agreement for each applicant/entity

Business Owner Identification • Copies of all owners’ State Issued picture ID

Payroll Expense Verification Documents

Ø IRS Form 940 and 941 Ø Payroll Summary Report with corresponding bank statement Ø Employee Pay Stubs as of February 15, 2020 with corresponding bank statement Ø Breakdown of Payroll Benefits

Payroll for Independent Contractors

Ø 1099’s for Independent Contractors

Business Financials • Trailing 12 Month P&L Statement (as of the date of PPP application for all applicants (month

by month)) • Balance Sheet at 12/31/19 or last period available (no later than 12/31/18).

Building Related Documents

• Most recent Mortgage Statement or Rent Statement (Lease Agreement) • Most recent Utility Bills

Ø Electric Ø Gas Ø Telephone Ø Internet Ø Water)

Calculation of PPP Loan Amount

• Provide Spreadsheet showing calculation of loan amount based on 2.5X salary calculation. (see page 2 for calculation formula per the SBA’s Interim Final Rule).

• Source Document of each number in your calculation should be referenced.

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• Purdue Federal Credit Union is not responsible per the CARES Act to verify your calculation and will not be liable for any miscalculations or loan balance that is not forgiven from the SBA. We highly recommend you seek your CPA’s professional services in verifying your loan calculation is correct.

Calculation of PPP Loan Amount Source: Small Business Administration [Docket No. SBA-2020-0015]

13 CFR Part 120 Business Loan Program Temporary Changes; Paycheck Protection Program

RIN 3245-AH34 Action: Interim Final Rule

Page 8 of 31 of the Interim Final Rule

1. Calculating Loan Amount: § Step 1: Aggregate “Payroll Costs” (defined in detail below) from the last twelve

months for employees whose principal place of residence is the United States. • “Payroll Cost Definition” –

o Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; 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); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation.

• Payroll Costs Items that must be excluded: o Any compensation of an employee whose principal place of

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residence is outside of the United States; o ii. The compensation of an individual employee in excess of an

annual salary of $100,000, prorated as necessary; o iii. Federal employment taxes imposed or withheld between

February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and

o iv. Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).

§ Step 2: • Subtract any compensation paid to an employee in excess of an annual

salary of $100,000 and/or any amounts paid to an independent contractor in excess of $100,000 per year.

§ Step 3: • Calculate average monthly payroll costs (divide the amount from Step 2

by 12) § Step 4:

• Multiply the average monthly payroll costs from Step 3 by 2.50. § Step 5:

• Add the outstandings amount of an Economic Injury Disaster Loan (EIDL) made between 1/31/20 and 4/3/20, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).

§ Here are some examples of calculation methodology: • Example 1 – No employees make more than $100,000

o Annual payroll: $120,000 o Average monthly payroll: $10,000 o Multiply by 2.5 = $25,000 o Maximum loan amount is $25,000

• Example 2 – Some employees make more than $100,000 o Annual payroll: $1,500,000 o Subtract compensation amounts in excess of an annual salary of o $100,000: $1,200,000 o Average monthly qualifying payroll: $100,000 o Multiply by 2.5 = $250,000 o Maximim loan amount is $250,000

• Example 3 – No employees make more than $100,000, outstanding EIDL loan of $10,000.

o Annual payroll: $120,000 o Average monthly payroll: $10,000

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o Multiply by 2.5 = $25,000 o Add EIDL loan of $10,000 = $35,000 o Maximum loan amount is $35,000

• Example 4 – Some employees make more than $100,000, outstanding EIDL loan of $10,000

o Annual payroll: $1,500,000 o Subtract compensation amounts in excess of an annual salary of o $100,000: $1,200,000 o Average monthly qualifying payroll: $100,000 o Multiply by 2.5 = $250,000 o Add EIDL loan of $10,000 = $260,000 o Maximum loan amount is $260,000