There are no experts when it comes to the PPP. The rules continue to change. Since we are in this together, VBO is sharing what we know currently. This will be updated as we go along. If there is anything you would like us to share, please email

Here is what we know :

  • Form 3508 has been published by the SBA. Our bank advised us not to fill this form out. Our bank will be filling out most of this application for us.
  • Covered Period has been updated by the SBA. Instead of the 8 week loan period running 8 weeks from date of deposit, the SBA is allowing businesses to use the start of the next pay period as day #1. For example, if your pay period runs Monday through Sunday but you received your deposit on a Wednesday, the 8 week period will begin the following Monday. {This has been updated again to be a 24 week period instead of 8 week period.}
  • Payroll must represent 75% of the funds needed. {This has been updated to be 60% instead of 75%}.
  • Payroll includes gross wages plus employer state payroll taxes. Employer federal payroll taxes are not included in the forgiveness portion.
  • Sick pay, vacation pay, holiday pay, and severance pay are all allowed payroll expenses.
  • The remaining 25% can be used for employee benefits, rent, lease, mortgage interest, and utilities. {This has been updated to be 40%}.
  • 1099’s are not an approved expense to be paid with these funds.
  • 1st payment will be due 6 months after the deposit. It will be the 1st of the month following. For example, if you received a deposit in May, the first payment will be due December 1st.
  • The payback period will be over a 5 years span.
  • Payments will be automatically deducted from the account used for the deposit.
  • Any unused funds can be paid back without penalties.

Here is what we are doing to prepare for the PPP paperwork :

  • For each payroll, we are printing copies of the pay stubs to PDF.
  • For each payroll, we are printing a payroll summary report to PDF.
  • For each utility check, we are printing copies of the invoice to PDF.
  • We have created a folder on our server reserved for all PDFs.
  • We are keeping a list of the required documents to use as a checklist.

Please note : If you are an existing client of VBO, we are already handling this behind the scenes for you.

Last updated 06/07/2020