For more detailed explanations of these terms, please see the SBA’s PPP Loan Forgiveness Application Form 3508S, Full Form 3508, or Form 3508EZ instructions. Keep in mind: Depending on which SBA form you use, not all of the following glossary terms will apply to your Forgiveness request.
We recommend you review the program details available at SBA.gov or Treasury.gov for the latest Forgiveness guidance and instructions.
25% reduction in gross receipts
Your Business can only qualify for Forgiveness on a second PPP loan if it experienced at least a 25% reduction in gross receipts between comparable periods in 2019 and 2020. You will need to provide documentation to show the 25% reduction in gross receipts when you request forgiveness if your second PPP loan is $150,000 or less. If your PPP loan amount is greater than $150,000, you will have provided this documentation in your loan application.
3508 (SBA Form 3508)
See SBA Form 3508.
3508EZ (SBA Form 3508EZ)
See SBA Form 3508EZ.
3508S (SBA Form 3508S)
See SBA Form 3508S.
941 (IRS Form 941)
See IRS Form 941.
ACH credit transaction
A network that coordinates electronic payments and automated money transfers; a way to move money between banks without using paper checks, wire transfers, credit card networks or cash. See also Payroll costs.
Exists when 1 business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses. You’ll need to let us know if your Business, together with its affiliates, received PPP loans that totaled more than $2 million. For more information, see the SBA affiliation rules as they relate to PPP. See also PPP.
A rate of return for a period less than 1 year but calculated as if the rate were for a full year. You’ll need to include the annualized compensation (compensation for the full year) for employees on the SBA’s PPP Schedule A Worksheet, Tables 1 and 2. See also PPP Schedule A Worksheet.
The page where you can track the status of your PPP Forgiveness request when you sign in to your Chase Business online dashboard.
Refers to approval. The SBA makes the decision about authorizing your requested PPP Forgiveness amount.
You must be an authorized representative—an individual(s) who's authorized to take actions on behalf of the Business that are binding and enforceable against the Business—to complete the PPP Forgiveness request.
See Full-time equivalency (FTE).
The Business that received PPP loan funds; an authorized representative of the Borrower/Business must complete and submit the PPP Forgiveness request.
Business mortgage interest payments
Interest payments on any business mortgage obligation on real or personal property that was paid or incurred during the Covered Period. These obligations should have existed before February 15, 2020. Don't include prepayments or payments on principal. You’ll need to upload documents verifying these payments, which may include bank or mortgage statements. If you use the 3508S form, you are not required to submit documentation for business mortgage interest payments as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Incurred.
Business rent or lease payments
Payments on business rent obligations on real or personal property under a lease agreement paid or incurred during the Covered Period. These obligations should have existed before February 15, 2020. You’ll need to upload documents verifying these payments, which may include bank statements or rent/lease obligations. If you use the 3508S form, you are not required to submit documentation for business rent or lease payments as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Incurred.
Taxpayer identification number. Your TIN may be an employer identification number (EIN) or your Social Security number (SSN).
Business utility payments
Payments for the distribution of electricity, gas, water, transportation, telephone or internet access on services paid or incurred during the Covered Period. These services should have existed before February 15, 2020. You’ll need to upload documents verifying these payments, which may include copies of invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for business utility payments as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Incurred.
Coronavirus Aid, Relief and Economic Security Act (CARES Act or the Act). The Act, signed into law on March 27, 2020, included appropriations for the initial SBA Paycheck Protection Program.
The sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave) paid or incurred during the Covered Period; for each employee, the total amount of cash compensation eligible for Forgiveness may not exceed an annualized salary of $100,000. Cash compensation for owner-employees, self-employed individuals or general partners is capped at $46,154 (for a 24-week Covered Period) or at $15,385 (for an 8-week Covered Period). See also Incurred.
Chase PPP loan number
The unique number Chase gave your original PPP loan application after you submitted it. We’ll populate the loan number for you.
Chosen reference period
The comparison period in which total average FTE is calculated, either: February 15, 2019 to June 30, 2019; or January 1, 2020 to February 29, 2020; for seasonal employers, either of these 2 periods or a consecutive 12-week period between February 15, 2019 and February 15, 2020.
Covered mortgage obligations
See Business mortgage interest payments.
Covered operations expenditures
Payments for any business software or cloud computing service that facilitates business operations; product or service delivery; the processing, payment or tracking of the following: payroll expenses, human resources, sales and billing functions; or accounting of tracking of supplies, inventory, records and expenses. If you include this cost in your forgiveness request, you’ll need to upload documents verifying these payments, which may include copies of invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for covered operations expenditures as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit.
The time period you’ll use to calculate all eligible payroll and non-payroll costs paid or incurred from the date the SBA authorized your PPP loan amount. The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the Borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement. For example, if the Borrower received their PPP loan proceeds on Monday, April 20, 2020, the first day of the Covered Period is Monday, April 20, 2020 and the final day of the Covered Period is any date selected by the Borrower between Sunday, June 14, 2020 and Sunday, October 4, 2020.
Covered property damage costs
Costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 and weren’t covered by insurance or other compensation. If you include this cost in your Forgiveness request, you’ll need to upload documents verifying these payments, which may include copies of invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for covered property damage costs as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit.
Covered rent obligations
See Business rent or lease payments.
Covered supplier costs
Expenditures made to a supplier of goods for the supply of goods that are essential to the operations of the Borrower at the time at which the expenditure is made, and made pursuant to a contract, order or purchase order in effect prior to the beginning of the Covered Period (for perishable goods, the contract, order or purchase order may have been in effect before or at any time during the Covered Period). If you include these costs in your Forgiveness request, ou’ll need to upload documents verifying these payments, which may include copies of contracts, orders or purchase orders in effect at any time before the Covered Period (except for perishable goods); invoices or canceled checks/bank statements. If you use the 3508S form, you are not required to submit documentation for covered supplier costs as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit.
Covered utility payments
See Business utility payments.
Covered worker protection expenditures
Operating or capital expenditures that facilitate the adaptation of business activities to comply with the requirements established or guidance issued by the U.S. government or guidance issued by a state or local government during the period starting March 1, 2020 and ending on the date on which the national emergency declared by the President with respect to the Coronavirus Disease 2019 (COVID-19) expires related to maintenance standards for sanitation, social distancing or any other worker or customer safety requirement related to COVID-19. If you include these costs in your Forgiveness request, ou’ll need to upload documents verifying these payments, which may include copies of invoices; canceled checks/bank statements; or other documents showing that the Borrower used these expenditures to comply with applicable COVID-19 guidance during the Covered Period. If you use the 3508S form, you are not required to submit documentation for covered worker protection expenditures as part of your forgiveness request. However, you must retain any relevant documentation for your records. Please refer to the 3508S instructions for information on the documents that you must retain in connection with an SBA review or audit. See also Borrower; Covered Period.