To receive loan forgiveness, a borrower must complete and submit the Loan Forgiveness Application (SBA Form 3508, 3508EZ, 3508S or lender equivalent) to NCB.
NCB will send a link to log in to the Atlas Platform for the Loan Forgiveness Application. The link is good for 72 hours, so please start the application as soon as you receive the email.

Borrowers can use the EZ form if they meet the following criteria:

• PPP Loan is more than $150,000; and
  Did not reduce the wages of their employees by more than 25%, and did not reduce the number or hours of their employees; or
• Experienced reductions in business activity as a result of federal health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

Borrowers can use the new S form if their PPP loan amount is $150,000 or less.
Borrowers that received a PPP loan of more than $50,000 (and borrowers with a PPP loan of less than $50,000 that together with their affiliates received PPP loans totaling $2 million or more) must adjust their “Requested Loan Forgiveness Amount” due to statutory requirements concerning reductions in either full-time equivalent (FTE) employees or employee salary and wages.

All borrowers completing the new S form must also adjust their “Requested Loan Forgiveness Amount” if less than 60% of the PPP loan was used on payroll costs or if the PPP loan amount was used to pay owners or employees in excess of the caps.

When submitting this S form, borrowers are not required to submit calculations or documentation unless the forgiveness application is for a Second Draw loan that did not provide documentation of the 25% revenue reduction requirement on the PPP loan application. However, borrowers are still required to maintain records of their calculations and documentation.

While up to 100% of the loan is eligible for forgiveness, requirements must be met for the funds to qualify for forgiveness. First, only loan proceeds that are used for an eligible purpose under the program may be forgiven. Eligible purposes include payroll and non-payroll costs such as payments of interest on mortgage obligations, rent, and utilities in place before February 15, 2020. Other non -payroll costs include covered operations expenditures, covered property damages costs, covered supplier costs, and covered worker protection expenditures incurred in the covered period. Second, these expenses are only eligible if they were paid or incurred in the covered period.
Third, the forgiveness amount will be reduced for the following reasons: the percentage of loan proceeds spent on payroll is less than 60%, the employee count has decreased, or employees had their compensation reduced by more than 25%.

Depending on the type of loan forgiveness application you complete, there are four broad categories of documentation that must be provided with your loan forgiveness application: payroll expenses, your full-time equivalent (FTE) employee count, non-payroll eligible expenses, and revenue reduction documentation. There are also several documents that need to be maintained in addition to those that must be provided with the application.

Documents that Must Be Submitted with Your Application:

• Payroll Expenses during the Covered Period (3508 and 3508EZ)
  You must submit the following documents showing your use of PPP funds for payroll expenses during the covered Period:
• Bank statements or third-party service provider reports documenting compensation paid to employees
  Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941)
• State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
• Payment receipts, canceled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans
• Additional Requirement for Certain EZ Form Users: the average number of full-time equivalent employees on payroll employed by the borrower on January 1, 2020 and at the end of the Covered Period.
  
  Non-Payroll Eligible Expenses (Please note that you do not need to provide documentation for these items if your payroll expenses are sufficient to receive full forgiveness of your PPP loan.)
  You must submit the following documents verifying the existence of debt/services prior to February 15, 2020 and showing your use of PPP funds for eligible payments during the Covered Period (8 to 24 weeks after disbursement at the borrower’s election):
• Business mortgage interest payments
• Copy of lender amortization schedule and receipts or canceled checks verifying payments; 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 payments.
• Business rent or lease payments: Copy of current lease agreement and receipts or canceled checks verifying 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 payments.
  
  
• Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, canceled checks, or account statements verifying those payments.
• Covered operations expenditures: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.
• Covered property damage costs: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments, and documentation that the costs were related to property damage and vandalism or looting due to public disturbances that occurred during 2020 and such costs were not covered by insurance or other compensation.
  Covered supplier costs: Copy of contracts, orders, or purchase orders in effect at any time before the Covered Period (except for perishable goods), copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.
  Covered worker protection expenditures: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments, and documentation that the expenditures were used by the Borrower to comply with applicable COVID-19 guidance during the Covered Period.

No more than 40% of the loan forgiveness amount can be for eligible expenses other than payroll (i.e. mortgage interest, rent, and/or utilities). The SBA and Treasury Department have indicated that if a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.

The definition of “payroll costs” for the Paycheck Protection Program includes the following:

• Salary, wage, commission, or similar compensation
• Payment of cash tip or equivalent
• Hazard pay and cash bonuses
• Payment for vacation, parental, family, medical, or sick leave
• Allowance for dismissal or separation
• Payment required for the provisions of group health care benefits, including insurance premiums
• Payment of any retirement benefit
• Payment of State or local tax assessed on the compensation of employees

The sum of payments of any compensation to a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in 1 year, as prorated for the covered period

Payroll costs, however, do not include the following expenses:

• The compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the covered period
• Taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period
• Any compensation of an employee whose principal place of residence is outside of the United States
• Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–127)
• Qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act (Public Law 116–127)

Payroll costs may be counted even if the payments were to furloughed employees.

For PPP forgiveness purposes, a covered utility payment includes payment for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020.