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This video uses text and infographics to reinforce spoken content.

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Helpful Tips. Paycheck Protection Program (PPP). Requesting Forgiveness through Chase.

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Legal disclosures appear.

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For Informational (and/or) Educational Purposes only. The views and strategies described may not be appropriate for everyone and are not intended as specific advice (and/or) recommendation for any individual. The views and strategies described may not be appropriate for everyone and are not intended as specific advice (and/or) recommendation for any individual. JPMorgan Chase Bank, N.A. or any of its affiliates are not liable for decisions made or actions taken in reliance on any of the information covered in this video. It is your obligation as the Borrower, to understand the SBA's rules. Other eligibility requirements may apply. All loans are subject to other requirements and availability of funds under the SBA program.

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You’ve got your SBA PPP loan and are already using it to keep your business going. Now, we want to make sure you have everything you need to request Forgiveness through Chase.

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What is Loan Forgiveness?

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You can request loan Forgiveness to forgive all or part of the loan you received, including interest. Forgiveness is neither automatic nor guaranteed. Let's start with timing. You have a limited amount of time to spend your funds if you’re requesting Forgiveness on your loan. This limited period is known as the Covered Period. It starts from the date of loan disbursement, the date that loan funds were deposited into your Chase business checking account. For loans that were funded before June 5th, 2020, you can choose an 8-week or 24-week Covered Period. For loans that were funded later, you have a 24-week Covered Period. You'll want to prepare to request Forgiveness by documenting your costs based on how you're spending your funds. Payments are generally deferred until 10 months after your 8-week or 24-week Covered Period ends. If you request Forgiveness in this deferral period, you won’t have to start making payments on unforgiven amounts until the SBA provides a decision on your request or remits funds.

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A chart labeled "The Forgiveness Timeline" includes a starting point marked "Loan Disbursement Date," a segment indicating the time to spend funds, marked "Covered Period," and a segment marked "Deferral Period" (which includes time to: Prepare Forgiveness, Request Forgiveness, and Receive a Decision from the SBA).

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There are four steps to requesting Forgiveness: Document your eligible costs, prepare to request, request Forgiveness, and track your request status.

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There are 4 steps to forgiveness:

- Document;

- Prepare;

- Request;

- Track.

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During the Covered Period, keep track of your eligible spending.

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The Covered Period starts on the Disbursement Date - when funds were first deposited into your Chase business checking account.

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If you have a payroll schedule that is bi-weekly or more frequent, you can choose to use the Alternative Payroll Covered Period for tracking payroll costs only. This period begins on the first day of your first pay period following loan disbursement. As you begin to document your eligible costs, you’ll want to learn the SBA’s definitions of eligible payroll and non-payroll costs. We’re highlighting the most common ones here. You should also keep track of costs in payroll and non-payroll categories. The program requires you to spend at least sixty percent on eligible payroll costs to obtain full Forgiveness, and to spend no more than forty percent on eligible non-payroll costs.

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Document your eligible costs.

Eligible Payroll Costs:

- Wages, including salary and tips.

Eligible Non-Payroll Costs:

- Mortgage interest;

- Rent;

- (and) Utilities.

Non-Eligible Costs:

- Mortgage principal;

- Inventory;

- (and) Equipment.

For a complete list of eligible costs, go to SBA.gov and Treasury.gov.

What are eligible payroll costs?

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So, what does the SBA classify as eligible? Here are some common examples: Employee compensation, cash tips, leave payments, allowance for separation or dismissal, healthcare insurance payments, retirement plan contributions, and certain state and local employee tax payments.

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What are compensation limits?

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The SBA has more details, but we want you to know that eligible annual compensation is limited to one hundred thousand dollars per employee. If you are using the 8-week period, that is fifteen thousand three hundred and eighty-five dollars per employee. For the 24-week period, it's $46,154 per employee. If you are the owner of the business or a self-employed individual, then your compensation is capped at $15,385 for an 8-week period and $20,833 for a 24-week period.

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Reference Period for Payroll Costs.

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The SBA asks you to compare the full-time employee levels during the Covered Period or Alternative Payroll Covered Period eligible payroll costs over a similar time period — this is known as the Reference Period. Most businesses have two choices for their Reference Period that are set by the SBA. Seasonal businesses have a third choice of a consecutive twelve-week period.

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The Reference Period is used by the SBA to compare your pre- and post-loan employment levels. You may have three choices:

Choice One - Feb. 15, 2019 through June 30, 2019;

Choice Two - Jan. 1, 2020 through Feb. 29, 2020;

Choice Three (seasonal business only) - Any consecutive 12-week period from May 1, 2019 through Sept. 15, 2019.

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Here are some examples of acceptable payroll and non-payroll documents to submit with your Forgiveness request.

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Documents you'll need.

Payroll Documents:

- Payroll tax filings;

- State income, payroll or unemployment insurance filings.

Non-Payroll Documents:

- Lease agreements, canceled checks, utility invoices, lender amortization schedule.

- Financial statements verifying payment on debt obligations incurred before the Covered period.

Your payroll provider may be able to provide PPP-specific documentation.

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Follow the instructions on our website, which can help you understand if you need to use the simpler Form 3508EZ or 3508.

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How to Prepare. Go to chase.com/loan-forgiveness.

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We'll send you an email to let you know when you can request Forgiveness. Once you get our email, follow the instructions to sign in with a computer and get started.

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Start your Forgiveness Request:

- Once you get our email, follow the instructions to sign in;

- Review and complete the pre-request steps before continuing.

Pro Tip: Use a computer, not a tablet or mobile device for best performance.

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We‘ll have dropdowns and explanations of key terms. You’ll be able to save information and finish the form at a later time.

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Use these helpful features:

- Program definitions;

- Save & return;

- Save & print a copy.

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Now just follow the instructions online.

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Input your forgiveness amounts.

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We’ll make it a little easier by pre-filling your request with standard business information as well as: SBA PPP Loan Number, Chase PPP Loan Number, Funded PPP Loan Amount, and PPP Loan Disbursement Date. Then, you'll be prompted to upload the documents that support your payroll costs during the Covered Period or Alternative Payroll Covered Period. To support non-payroll costs for the Covered Period, upload documents from the following categories: Utilities, rent or leases, and mortgage interest. These non-payroll obligations must have been established before February 15th, 2020.

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Pro Tip: Upload PDF, JPEG, PNG, or XLS files only.

Final Steps.

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Review your request thoroughly before you submit it. You can save and print a copy for your records. If we have questions, we’ll let you know.

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What happens next?

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We’ve created an online tracker and a series of emails to help. We’ll confirm we got your request and prepare to submit it to the SBA. We'll then send it to the SBA for authorization. And finally, we’ll send you the SBA's decision along with instructions for any payment due. You can also check the status of your Forgiveness request online at any time. For more information, visit our website. You can also visit SBA.gov and Treasury.gov.

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Stay connected. Visit: chase.com/loan-forgiveness. Visit: SBA.gov and Treasury.gov.

Chase for Business. Make More Of What's Yours (registered trademark).

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Legal disclosures appear.

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It is your obligation as the Borrower, to understand the SBA's rules. Other eligibility requirements may apply. All loans are subject to other requirements and availability of funds under the SBA program. "JPMorgan," "JPMorgan Chase," the JPMorgan Chase logo, "Story" and "Story by J.P. Morgan" are trademarks of JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. is a wholly-owned subsidiary of JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender. Copyright 2020 JPMorgan Chase & Co. All rights reserved.

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