Recommended Supporting Documents

The information contained in this page is based on laws, rules, regulations, and related guidance with respect to the Paycheck Protection Program (PPP), including updates based on the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act and guidance issued by the U.S. Small Business Administration (SBA). We will be updating this page with new information as we receive it. Please check back often and consider bookmarking this page. In the event of any discrepancies between the information on this site and the SBA’s site, please follow official SBA guidance.

For loans of $150,000 or less

If you use Form 3508S, you do not need to submit any documentation in support of PPP loan forgiveness. However, if you are applying for forgiveness for a Second Draw PPP loan, you will be required to provide documentation on your revenue reduction (i.e. reduction in gross receipts), if you did not provide it at the time of your Second Draw PPP loan application. In addition, even if you are not required to submit any documents, you must retain all documents for the required periods and provide them upon request.

Payroll

• Third-party payroll service provider reports documenting the amount of cash compensation paid to employees and taxes reported, if included. Please provide tax information detailed below, if not included in third-party payroll service provider reports.
  Or
  
• Bank account statements and payroll tax forms (e.g. form 941) and state quarterly wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.

Note: If providing self-prepared payroll report or schedule, please provide a consolidated payroll register with summary figures from all paycheck dates in the covered period. Reports must include company totals and clearly list employer-paid state and local taxes.

Employer contributions for employee health insurance and employee retirement plans

Account statements, payment receipts or cancelled checks documenting the amount of any employer contributions to employee health insurance and retirement plans included in the forgiveness amount, unless details are included in the third-party payroll service report (if applicable).

Average full-time equivalency (FTE) for Form 3508

FTE report showing average number of FTE employees per week during one of these periods:

• February 15, 2019 to June 30, 2019; or
• January 1, 2020 to February 29, 2020; or
• For a seasonal employer, one of the periods above or any consecutive 12-week period May 1, 2019 to September 15, 2019

Documents may include payroll reports, or payroll tax forms (e.g. form 941) and state quarterly wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.

If using Form 3508EZ and you meet the conditions related to reduction of salaries, number of employees and hours, you will need to document the average number of FTE employees on payroll employed on January 1, 2020 and at the end of the covered period.

You only need to provide an FTE report if you selected the first eligibility condition, related to reduction of salaries, number of employees and hours. The report needs to include the average number of FTE employees on payroll employed on January 1, 2020 and at the end of the covered period.

Compensation to Owners:

Payroll documents detailing cash compensation paid to owner-employee(s) during the covered or alternative covered period selected, up to the maximum eligible amount stated previously.

Make sure the payroll report indicates clearly any owner-employees on the payroll report.

NonPayroll

• 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.
  And
  
• Copy of lender amortization schedule and receipts, or cancelled checks verifying eligible payments from the covered period.

• Lessor account statements, from February 2020 and from the covered period through one month after the end of the covered period, verifying eligible payments.
  And
  
• Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the covered period.

• Account statements or a summary page as long as it contains account owner and address, date of service and amount paid.
  And
  
• Invoices from February 2020 and invoices paid during the covered period and receipts and cancelled checks.

Includes payment for any software or cloud computing service that facilitates business operations, product or service delivery, human resources, or accounting, among other things.

• Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.

Cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance.

• 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 activity that occurred during 2020 and such costs were not covered by insurance or other compensation.
  

Expenditure to a supplier of goods for the supply of goods that are essential to operations when the expenditure is made and relates to a contract, order, or purchase order in effect prior to taking out the loan. With respect to perishable goods, the contract, order, or purchase order must be in effect at any time during the covered period.

• 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.

Operating or capital expenditure to facilitate the adaptation of business activities to comply with requirements or guidance issued by federal, state, or local authorities in relation to COVID-19, including personal protective equipment.

• 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 you to comply with applicable COVID-19 guidance during the Covered Period.

Gross Receipts Reduction

If you selected Annual 2019 and Annual 2020 as your comparison Time Periods to show 25% gross receipts reduction:

• Annual IRS income tax filings.

If you have not yet filed a tax return for 2020, you must fill out the return forms, compute the relevant gross receipts value and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.

If you chose quarterly as your Time Periods to show 25% gross receipts reduction:

• Quarterly financial statements from the relevant quarters or quarterly or monthly bank statements for the entity showing deposits from the relevant quarters

If the financial statements are not audited, you must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify gross receipts as a line item(s), you must annotate which line item(s) constitute gross receipts.

If it is not clear, you must annotate which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions).

Documents submitted should include all periods overlapping the covered period.

While the bank may have some of these documents on file, the SBA requires you, as the borrower, to supply the documents to validate your expenses.

Notes on payroll documents:⁠

Payroll Reports should include all periods overlapping the covered period, and show figures for each of the following eligible costs:

• Cash compensation;
• Employer contributions for employee health insurance (Medical, Dental, Vision);
• Employer contributions to group life and disability insurance;
  
• Employer contributions to employee retirement plans; and
• Employer state and local taxes assessed on employee compensation.

It is preferred if the report shows separate cash compensation figures for:

• Employees who received compensation at an annualized rate
• Employees who received compensation at an annualized rate >$100,000 for all pay periods in the year that was used to calculate the loan amount (2019 or 2020).
  [For Form 3508S and Form 3508EZ, there is no need to separate employees by 2019 compensation level.]

If you have completed the PPP Schedule A Worksheet, we suggest you provide it when you submit your application. It can be found on Page 4 of Form 3508.

This detail helps us validate the line item figures shown on the forgiveness application forms.

Cash compensation:

• Eligible cash compensation includes: gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave), and allowances for dismissal or separation. This may include bonus, hazard pay, and salaries to furloughed employees.
• Do not include compensation in excess of an annual salary of $100,000 annualized, as prorated for the covered period. Therefore, the payroll schedule should show no employee with more than $46,154 in compensation if selecting a 24 week period - the maximums are lower for periods of less than 24 weeks.
• Do not include payments to independent contractors, or compensation to employees whose principal place of residence is outside the US; or qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act.

Compensation to owners:⁠

• Owner-employees, self-employed individuals and partners are eligible for loan forgiveness on the basis of their 2019 compensation. The maximum amount of loan forgiveness you can claim as compensation per individual owner or partner is $20,833 (which is 2.5 months equivalent of $100,000 per year) - the maximums are lower for periods of less than 24 weeks.
• Self-employed Schedule C (or Schedule F) filers. If you did not submit 2019 IRS Form 1040 Schedule C (or F) when you initially applied for the PPP loan, include it with your forgiveness application.
• General Partners. If you are a partnership and did not submit 2019 IRS Form 1065 K-1s when you initially applied for the PPP loan, include it with the partnership’s forgiveness application.
• For owner-employees of C-corps & S-corps, to claim forgiveness, you must submit payroll documents detailing cash compensation paid to owner-employee(s) during the covered period selected, up to the eligible amount stated previously.
• Owner-employees with less than 5% ownership stake in a C- or S-Corporation are not subject to the owner-employee compensation limits and are eligible for a maximum payroll claim of $46,154 in cash compensation if selecting a 24 week period - the maximums are lower for periods of less than 24 weeks.

Non-cash compensation:⁠ ⁠

The caps detailed relate to maximums that you can claim for cash compensation. In addition, borrowers may claim non-cash compensation for employer contributions for employee health insurance; employer contributions to employee retirement plans; and state and local taxes assessed on employee compensation, as explained in the FAQs.

Full-time equivalency (FTE):⁠⁠

FTE counts both full-time (FT) and part-time (PT) employees. An FT employee is counted as 1.0 FTE, and a PT employee is counted by average number of hours per week divided by 40. For example, a PT employee working 32 hours would count as 0.8 FTE. The SBA also offers a simplified method that assigns all PT employees as 0.5 FTE, if that is preferable.

Additional information on PPP loan forgiveness:

More information on SBA PPP loan forgiveness can be found on the SBA site. Instructions for PPP Loan Forgiveness Application Form 3508S, Form 3508EZ, and Form 3508 including details on required documents, can be found on the following pages:

PPP Loan Forgiveness Application Form 3508S (for loans of $150,000 or less)

PPP Loan Forgiveness Application Form 3508EZ

PPP Loan Forgiveness Application Form 3508

All forgiveness applications for Wells Fargo PPP loans must be submitted using our online application. Once the application is available, you can access it through Wells Fargo Business Online ® . Please do not attempt to submit the PPP loan forgiveness application downloaded from the SBA site.

Loan Forgiveness Center

What you need to know about PPP loan forgiveness

How to Prepare

Learn more about the essentials of the Paycheck Protection Program

FAQs

Learn more about PPP and loan forgiveness

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A.

Wells Fargo Bank, N.A. Member FDIC.