SBA PPP Documentation Checklist
It is the responsibility of Macatawa Bank, under the Paycheck Protection Program (PPP), to verify the dollar amount of average payroll costs submitted by borrowers on written applications. The verification is necessary for the average monthly payroll costs for the twelve months ending 12/31/19 or 12/31/20, with the period utilized to be determined by the business.
Supporting Payroll Records to be submitted with PPP application by most businesses:
- Detailed calculation of maximum loan amount (show your math).
- Third party payroll administrator records for the applicable period.
- List of all employees with compensation over $100,000, and a worksheet showing each employee has been reduced to $100,000 for the purposes of this formula, if applicable.
- Copies of quarterly 941 payroll tax reports filed with the IRS or equivalent (note 941 statements may not be available for Q4 of 2020), if applicable.
- State quarterly wage unemployment tax reporting forms for each quarter in the year utilized to determine the loan amount, if applicable.
- Records of payments made for employer paid group health care benefits, if applicable.
- Records of payments made for employer paid retirement plan benefits, if applicable.
- Records of payments made for state or local taxes assessed on the compensation of employees, if applicable.
- Payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish that you were in operation on February 15, 2020.
Sole Proprietors or Self-Employed:
- 2019 or 2020 Schedule C (whichever period is chosen to calculate loan amount).
- IRS Form 1099-Misc. detailing nonemployee compensation (box 7), invoice, bank statement or bank record to establish you are self-employed (if applicable).
- 2020 invoice, bank statement or bank record to establish you are self-employed and were in operation on or around February 15, 2020.
- If you have employees, include the supporting payroll documentation shown above.
For PPP Second Draw Borrowers for loans greater than $150,000: