SQUARE CAPITAL GUIDE
Applying for PPP loan forgiveness
If you received your PPP loan through Square Capital, this guide will outline how loan forgiveness works, including the steps you’ll need to take and the documents you’ll need to apply.
Since the SBA and Congress can still change forgiveness guidelines, follow our Support Center article for the latest news.
Once your application arrives
If you’re ready, you can apply as soon as you receive your application link from us.
Or wait for more expenses
You may want to wait until you’ve accumulated more eligible expenses during your covered period in order to maximize your forgiveness amount.
Your covered period for forgiveness-eligible expenses lasts up to 24 weeks after you received your loan. You can choose a covered period between 8 and 24 weeks. You’ll have up to 10 months after your covered period ends to apply for loan forgiveness.
Payroll
60% (or more) of your loan needs to be spent on payroll. Also, if your loan is more than $50,0000, your employee headcount and wages must be back up to pre-COVID rates to qualify for full loan forgiveness.
Business costs
40% (or less) of your loan can be used on eligible business expenses like utilities, rent, and mortgage interest.
Reductions
If your loan is more than $50,000 and you reduced your number of employees or their wages by more than 25% during the covered period and aren’t back to previous levels by the time you apply, expect partial loan forgiveness unless your loan size is $50,000 or less.
We’re working to make the process easy for anyone who received a PPP loan through Square Capital. We’ll help you calculate how much of your loan could be eligible for forgiveness.
Employers
If you applied for your PPP loan with a Form 940, 941, 944, or W-2—use these documents:
-
Payroll/Wages: Taxable wage filings such as a Quarterly Form 941
-
Employee compensation: Third-party payroll provider reports
-
Benefits: Third-party payroll provider reports or benefit provider account statements
-
Utilities: Utility account statements verifying payments for February 2020 and each month during your covered period
-
Rent: Monthly landlord (lessor) account statements for February 2020 and each month during your covered period
-
Mortgage interest: Lender account statements for February 2020 and each month during your covered period
-
Covered operations expenditures: Copy of invoices, orders, or purchase orders paid during the covered period, plus receipts, canceled checks, or account statements verifying those eligible payments.
Covered property damage costs: Copy of invoices, orders, or purchase orders paid during the covered period, plus receipts, canceled checks, or account statements verifying those eligible payments. You’ll also need documentation that the costs related to property damage, vandalism, and/or looting due to public disturbances in 2020 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, plus receipts, canceled checks, or account statements verifying those eligible payments.
-
Covered worker protection expenditures: Copy of invoices, orders, or purchase orders paid during the covered period, plus receipts, canceled checks, or account statements verifying those eligible payments. You’ll also need documentation that the expenditures were used to comply with applicable COVID-19 guidance during the covered period.
Non-employers
If you applied for your PPP loan with a Form 1040 Schedule C, use the following documents:
-
Payroll/Wages: 2019 Form 1040 Schedule C
-
Utilities: Utility account statements verifying payments for February 2020 and each month during your covered period
-
Rent: Monthly landlord (lessor) account statements for February 2020 and each month during your covered period
-
Mortgage interest: Lender account statements for February 2020 and each month during your covered period
-
Covered operations expenditures: Copy of invoices, orders, or purchase orders paid during the covered period, plus receipts, canceled checks, or account statements verifying those eligible payments.
-
Covered property damage costs: Copy of invoices, orders, or purchase orders paid during the covered period, plus receipts, canceled checks, or account statements verifying those eligible payments. You’ll also need documentation that the costs related to property damage, vandalism, and/or looting due to public disturbances in 2020 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, plus receipts, canceled checks, or account statements verifying those eligible payments.
-
Covered worker protection expenditures: Copy of invoices, orders, or purchase orders paid during the covered period, plus receipts, canceled checks, or account statements verifying those eligible payments. You’ll also need documentation that the expenditures were used to comply with applicable COVID-19 guidance during the covered period.
What’s the timeline for forgiveness?
After you apply, getting your final decision from the SBA will likely take some time, as thousands of businesses will be applying at once. Here’s a breakdown of the forgiveness schedule:
Up to 24 weeks to use the funds.
10-month window for you to submit your application.
60 days for Square to verify your application.
90 days for SBA to review and make a final decision.
Timeline and repayment details can vary depending on when your loan was disbursed.
For the most recent updates and SBA guidelines, please refer to the SBA website.
Square, the Square logo, Square Capital, and others are trademarks of Square, Inc. and/or Square Capital, LLC. Square Capital, LLC is a wholly owned subsidiary of Square, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY.
All loans are issued by Square Capital, LLC, a PPP lender licensed by the SBA. The individual authorized to act on behalf of the business must be a U.S. citizen or permanent resident and at least 18 years old. Valid U.S. bank account and Social Security number or Individual Taxpayer Identification Number are required. Eligibility for the Paycheck Protection Program or any other loan product is not guaranteed. All loans, if offered, will be subject to approval and qualification under the program standards. Square Capital, LLC is a licensed servicer and debt collector with the following License Information.