How to Prepare for Maximum PPP Loan Forgiveness

Lenders: Please book a 30 minute demo to learn more about Boss Insights’ platform
providing instant forgiveness calculation for your borrowers.
Borrowers: If you’d like to provide more information to your lenders, please reach out to us for
an email to send at info@bossinsights.com
ABOUT BOSS INSIGHTS 2
BOSS CARES PPP 2
ABOUT NUTTER 2
ABOUT THE CAPITAL NETWORK 3
INFO FOR LENDERS 3
RESOURCES 3
WATCH OUR DEMO: 4
INFO FOR BORROWERS 5
FREE ACCOUNTING AND PAYROLL TOOLS 5
HOW TO GET BOSS INSIGHTS 6
HOW TO PREPARE FOR MAXIMUM PPP FORGIVENESS FAQ 7
GUIDANCE FROM NUTTER 12

ABOUT BOSS INSIGHTS
Boss Insights’ data platform gives lenders a complete business customer view,
increasing personalized sales opportunities and accelerating business lending
from months to minutes. Our mission is to provide banks, credit unions and
private lenders with a real time understanding of their business client and
enabling them to put clients first and delight them. We empower FIs to trade
transactional service for true financial partnership.
BOSS CARES PPP
During the current crisis Boss Insights stands ready to help SMB and
Commercial lenders. Boss CARES is an automated modular PPP/CARES
platform. Typical platforms will provide an online form but still need borrowers
to fill them in manually. It requires a lot of support and lengthens the time it
takes for lenders to receive SBA payment. Boss Insights stands apart by
offering an instant forgiveness calculation in 2 - 5 steps. The API platform
connects to accounting and payroll systems offering the quickest way for
lenders to submit information to the SBA. Boss Insights offers true data
automation vs. a file management system. It is a modular platform that can be
adopted in 1-3 days by lenders with functionality that extends beyond the PPP
loan facility to regular SBA, SMB and Commercial loans.
FEATURED IN
ABOUT NUTTER
Nutter is a Boston-based law firm that provides legal counsel to industry-
leading companies, early stage entrepreneurs, institutions, foundations, and
families, across the country and around the world. The firm’s business and
finance, intellectual property, litigation, real estate and land use, labor and
employment, tax, and trusts and estates practices are national in scope. The
firm was co-founded in 1879 by former U.S. Supreme Court Justice Louis D.
Brandeis, before his appointment to the Court. For more information, please
visit www.nutter.com and follow the firm on LinkedIn.

ABOUT THE CAPITAL NETWORK
The Capital Network is a non-profit (501c3) that aims to democratize access to funding in the
Greater Boston Area and Beyond. TCN provides practical, hands-on education and
personalized mentoring from investors & experts to help demystify the funding process to
thousands of early stage entrepreneurs.
We want ALL entrepreneurs to make informed decisions for their businesses by giving them the
resources & education to understand and the network to make it happen.
TCN is also the home of the Fellowship For Female Founders - supporting more women
founders to succeed on their fundraising journey.
Membership Upcoming Events Covid19 $ Resources
INFO FOR LENDERS
Boss Insights stands apart from peers with an instant auto-completed forgiveness
calculation. Instead of putting borrowers through reiterative manual data entries that
are tedious, confusing, and error-prone, Boss Insights allows borrowers to share their
business data by instantly connecting their business with your lending platform.
Boss Insights provides both self-serve and guided walkthroughs to complete the
forgiveness application. Borrowers who have completed the 3508 manually can
simply skip to the last step to transfer their answers and attest to submit. Our guided
process allows borrowers to connect their data, whether through a cloud API or filling
in our simple template, and instantly auto-complete their forgiveness 3508
application.
RESOURCES
▪ Reach Boss Insights at info@bossinsights.com
▪ Schedule a demo to learn how Boss Insights provides instant forgiveness
calculations for your borrowers
▪ Learn more about Boss CARES PPP on our website

BOSS
Insights
Modular ✓
Extendable beyond PPP ✓
API ✓ vs. File management ✓
Simplified Data Collection ✓
Mass Forgiveness email ✓
Agile to Changes ✓
Auto-completed application ✓
Automated 3508 & 1502 ✓
Borrower/ Lender Alerts ✓
Borrower/ Lender Insights ✓
Tech Support ✓
WATCH OUR DEMO:

INFO FOR BORROWERS
Boss CAREs PPP lets your lenders provide you with a fully automated application
process. Your forgiveness application will be automated completed the instant you
connect your business data. You may verify, update, and add to your data as necessary.
WATCH OUR DEMO:
FREE ACCOUNTING AND PAYROLL TOOLS
We recommend Wave accounting for a truly free solution for
accounting, payroll and invoicing. Sage Accounting currently
offers deep discounts. Boss Insights connects both Wave and
Sage within seconds to pre-fill your forgiveness application.

HOW TO GET BOSS INSIGHTS
Here is a template you may send your lender so your lender can offer Boss Insights to
help you instantly complete and maximize your forgiveness:
Thank you for approving my PPP loan. US Secretary of Treasury Steven Mnuchin
stated that recipients should expect to be audited. While there are many solutions
for Forgiveness Applications, few can connect to my existing data and instantly auto-
complete my Form 3508. Boss Insights, identified in a Forbes article on the looming
PPP Forgiveness is the most Borrower friendly tool I’ve seen. "Boss CARES covers
forgiveness calculations of PPP loans letting borrowers connect their accounting,
financial and payroll systems, and let’s lenders see borrower information at the
portfolio level." They have a brief DEMO VIDEO. As a borrower expecting to be
audited, I would like to have this automated functionality. I spoke with Boss Insights
and they can provide this to lenders in 1-3 days. Can you please reach out to
info@bossinsights.com to help borrowers like me?

HOW TO PREPARE FOR MAXIMUM PPP FORGIVENESS FAQ
These questions were submitted for the Webinar. Here are our answers below.
Access TCN’s Recorded Webinars:
The CARES ACT - WHAT’s IN IT FOR STARTUPS
HOW TO PREPARE FOR MAXIMUM PPP LOAN FORGIVENESS
Event: Webinar | How to Prepare for Maximum PPP Loan Forgiveness
Time: Wed, June 3rd, 2020
Timing
What is the timing to request loan forgiveness?
Current guidance:
● Borrowers may request loan forgiveness after covered period from the time
they received their funds.
● Lenders have 60 days to review the forgiveness application, and the SBA has
90 days to finalize the forgiveness amount.
Potential changes:
● PPP Flexibility Act (passed the House on May 28, 2020 and the Senate on June
3, 2020) makes changes to allow 10 months to apply for forgiveness from the
end of the covered period.
● This bill extends the 2 year maturity date on the PPP loans to 5 years for newly
issued loans. For existing loans, lenders may extend maturity to 5 years.
● The bill also permits (but does not require) borrowers to use the proceeds over
a 24 week period instead of an 8 week period. Borrowers may elect to retain
the 8 week period.
When do the covered period officially begin and end?
The covered period officially starts when you receive the funds. Solely for purposes of
analyzing use of payroll proceeds, SBA lets you shift it back to the next payroll period,
known as the “Alternative Payroll Covered Period”.

Qualification & Eligibility
How do you qualify for PPP loan forgiveness?
Demonstrate:
1. You are a certified Borrower
2. Your PPP loan will be used for approved expenses such as Payroll, Utilities,
Rent, Interest
3. Your PPP loan will be used in approved ways, including maintaining same
employee headcount & payroll levels – this will require you to maintain
documentation.
How can you apply for PPP Loan forgiveness as an LLC without payroll?
● Owners may list owner compensation as a qualified expense in Schedule A
line 9, subject to constraint below:
● Constraint: compensation amount must be 8-week equivalent of $100k per
year per owner ($15,385), or similar level compensation in 2019 (whichever is
lower).
● This applies to owner-employees, self-employed individuals and general
partners.
What is really eligible for forgiveness?
Payroll, Utility, Interest, and Rent are eligible forgiveness expenses.
● Payroll includes cash & non-cash:
○ Cash covers wages, tips, commission, severance, and payments for
vacation, parental, family, medical or sick days.
○ Non-Cash includes benefits such as health plans, health insurance,
retirement plan contributions, and employee-taxes paid.
● Utility, interest, or rent must exist prior to February 15, 2020 to be eligible.
● Utilities include phone, internet, gas, electricity, transportation and water.
● Rent refers to rent or lease of property.
● Interest refers to mortgage interest and only the interest portion is forgivable,
NOT the principal amounts.
If you don't hit 75% payroll what happens?
● Your forgivable amount is reduced by the difference compared to 75% of your
loan. For example, if $75k is 75% of your loan, if you only spent $70k on payroll,
then $5k will not be forgivable and become a 2 year loan with 1% interest.

● Once the PPP Flexibility Act is signed, this threshold will be reduced from 75%
to 60%.
For safety reasons, we won't be able to reopen until 2021 and therefore have to lay off
our staff as soon as the PPP loan runs out. Is there any risk of doing so (in terms of
loan forgiveness) right after the PPP money runs out?
● No, there is no risk. Existing and new bills are the same on this. However, the
goal is to incentivize businesses to have the same employment by June 30,
2020 so this is discouraged but not disallowed.
● The new bill allows businesses to push Safe Harbor from June 30, 2020 to
December 31, 2020.
Use of fund
Can I apply the funds towards new hires?
● Yes, you can use funds to hire the same number of people, not necessarily the
same people. Headcount is what matters.
Can I have our owner draw count toward forgiveness even if we didn't include it
(because we didn't know until later, sigh) in the application?
● Yes, up to a maximum of $15,385 or the 2019 applicable equivalent (or not too
far off from previous salary). This can be filled in Line 9 of Schedule A on SBA’s
Form 3508.
How can I pay myself as founder and claim it on loan forgiveness?
● You can pay yourself as a founder by filling your owner compensation on
Schedule A line 9 on the SBA Form 3508.
● Owner-employees, self-employed individuals or general partners can receive
up to a maximum of $15,385 or the 2019 applicable equivalent (lessor of).
● If there are multiple owners, please attach a table with names and payment.
If an employee receives a raise, what are the limitations (assuming under $100k
salary) for their full pay to qualify for the forgiveness?
● Limitations happen if raises exceed $100k, otherwise there’s no impact.
● Salary reductions impact the forgiveness calculation beyond a 25% reduction .
● However, if you raise one employee’s pay and lower another’s, even if it nets to
zero change, your forgiveness will be lowered
● Raising an employee’s salary only helps meet the 75% payroll requirement
which will be reduced to 60% upon approval of the PPP Flexibility Act.

Can 100% loan forgiveness be achieved if some of the funds are used to pay
contractors? If so, how much may be paid to contractors and still qualify for 100%
forgiveness?
● Contractors are not qualified payroll expenses for PPP forgiveness.
Can you prepay portions of salary/commission or bonus and still qualify for 100%
forgiveness?
● Expenses must be paid or incurred during the covered period.
With Utilities & Rent, does the period have to be for the covered period, or can they
be payments made during the covered period - cash vs. accrual?
● Expenses that are paid during the covered period count. Expenses that are
incurred during the covered period but paid after the covered period ends (so
long as the bill is paid on time) also count for the portion that is applicable to
the covered period.
● This 25% will be raised to 40% pursuant to the new legislation.
Tracking & Documents
How do I receive maximum forgiveness? What documentation must I produce?
● The best chance is to comply with the intent of the program: keeping
employees employed and paid at same levels pre-pandemic. However, if you
reduced headcount or wages, you can take advantage of safe harbor rules
and restore wage or headcount by December 31, 2020.
● Document things well - bank statements, tax forms (form 941), payment
receipts, cancelled checks, and account statements, payroll software, lender
amortization schedule and receipts, rent or lease payments, lessor account
statements as well as utility payments (to demonstrate they existed prior to
February 15, 2020).
● Don’t show new expenses - that’s not the purpose of the loan
● For Safe Harbor, keep written documentation confirming job offers and
refusals, firings and voluntary resignations.
What info do I need to provide (invoices from my independent contractor, cancelled
checks) to get loan forgiveness for paying the independent contractor who is doing
work for my start up?
● Contractors do not qualify as an eligible payroll expense.

How to best track owner's draw as a single owner LLC?
● If you paid or incurred an owners’ draw during the covered period, keep a
copy of your bank statements and proof of withdrawal.
● Remember to have documentation for 2019 period & keep 2019 IRS forms
such as 1040 & Schedule C to show that the amount during the covered
period matches prior levels; Form 1065 & schedule K1 work also.
What other expenses should I track and record toward the remaining forgivable
expenses?
● Rent, utilities, and interest are eligible non-payroll expenses – but they must
have existed prior to February 15, 2020.
○ Rent: real or personal property and includes business rent or lease
payments.
○ Interest: business mortgage obligation on real or personal properties
and must be interest only and not including principal portion.
○ Utility - electricity, gas, water, transportation, telephone or internet
access; transportation is loosely presumed to be gas for business travel.
● Show documentation!
Will payroll stubs be enough to have loan forgiven. Does it matter if take the whole
amount in one payroll or spread it over multiple payroll periods?
● Yes they are, but show bank statements and accounting to match it.
● SBA says nothing about being over multiple periods – but you must show that
the totals match.
Changes in the future?
Will the PPP Forgiveness Application be revised? If so, approximately when?
● Given the new legislation, it will be revised. Additionally, it is likely that your
lender will have a digitized version of the application that you will need to
complete, so it may not be advisable to fill this out by hand now. You should
use the application as a guide to assist you in thinking about your use of the
proceeds.
What is the likelihood that the PPP Flexibility Act will pass and will provide a longer
time window for payroll to be used for forgiveness?
The PPP Flexibility Act was passed by the Senate on June 3, 2020 and is awaiting
signature by the President.

You can spend funds on interest on debt but cannot get forgiveness for these
interest payments. Any chance that will change?
● You can obtain forgiveness on interest on mortgage payments (which
includes debt that is secured by real property and personal property, so if you
have an all assets loan outstanding, these payments count), but only if non-
payroll expenses do not exceed the cap on non-payroll expenses.
How does potential new law impact forgiveness calculation
See Nutter’s advisory below.
Old Rules Bill HR 7010 – PPP
Flexibility Act
Forgiveness Period covered
period
24 weeks
Payroll Percentage 75% 60%
Forgiveness
Application
June 30,
2020
10 months after 24 weeks
until December 31st
Loan duration 2 years 5 years
GUIDANCE FROM NUTTER
CONGRESS APPROVES SIGNIFICANT CHANGES TO PPP; WHAT
BORROWERS NEED TO KNOW
On May 28, the House of Representatives passed legislation that amends
certain provisions of the Paycheck Protection Program (PPP) largely in an
effort to extend the period by which borrowers are permitted to use the
proceeds and qualify for forgiveness. On June 3, the Senate, by unanimous
consent, approved the House bill. We anticipate that this bill will be signed by
the President shortly. In this advisory, we analyze material changes to the PPP
and address important considerations for borrowers in light of these
developments.
The material changes to the PPP include:
● Extension of Maturity – PPP loans issued after the bill becomes law will
have a maturity date of five years from the date of disbursement. PPP

loans that are currently outstanding can be extended to five years with
the consent of the lender.
● Covered Period for Use of PPP Proceeds – The eight-week period
previously provided in the PPP will be extended and will run from the
date of disbursement until the earlier to occur of (i) 24 weeks from date
of disbursement, or (ii) December 31, 2020. That said, borrowers can elect
to use the eight-week period in which they have been operating. For
those borrowers that have been able to largely maintain operations and
use the proceeds, this may be a more appropriate option.
● Revised Payroll/Non-Payroll Ratio – The required minimum
percentage of proceeds used for payroll costs has been reduced from
75% to 60%. As a result, borrowers can now use 40% of their used
proceeds on non-payroll costs such as rent and utilities. One note,
however, the bill as written suggests that failure to hit the 60% threshold
will result in total loss of forgiveness. Certain members of Congress have
indicated that they will look to clarify this in “technical fixes” to the
legislation to provide a calculation mechanism similar to the existing
program, where a borrower only loses forgiveness for the applicable
portion of the proceeds that falls outside of the 60/40 ratio.
● Safe Harbor for Forgiveness - A few changes were made to expand the
ability of borrowers to qualify for a safe harbor that would entitle them
to forgiveness notwithstanding reductions in headcount:
o Existing Safe Harbor Deadline Extended – The existing safe
harbors to restore headcount and wages that were in effect on
February 15, 2020 has been extended to December 31, 2020. This
means that if you have a loss of forgiveness as a result of reduced
headcount or reduced wages, so long as this is restored on or
before December 31, 2020, you will have that loss of forgiveness
restored.
o Inability to Hire Employees – If a borrower has a reduction in
headcount between February 15, 2020 and December 31, 2020 and
can, in good faith, document that the borrower could not (i) rehire
those employees who were employed on February 15, 2020, and (ii)
hire similarly qualified employees by December 31, 2020 for
unfilled positions, then the borrower will be entitled to full-time
equivalent exemptions for those employees. The good faith

requirement will likely be the source of significant additional
guidance from the SBA and Treasury. We anticipate that a
borrower would need to show that actual efforts have been made
to fill the positions, either through solicitations, interviews or other
documentable actions.
o Inability to Restore Business Operations – If a borrower can
document, in good faith, that the borrower was unable to return
to the same level of business activity that the business was
operating at on February 15, 2020 due to compliance with COVID-
related safety regulations, then any loss of forgiveness as a result
of reduction in headcount will be restored. Similar to the above,
there will be a lot of discussion and speculation as to what
constitutes a good faith determination of inability to return to
February 15, 2020 levels of business. We anticipate that a simple
financial statement test will not be sufficient, but until more
guidance is given by the SBA, borrowers would be well advised to
document the specific effects of compliance with COVID-related
safety regulations on the business and then financial ramifications
associated with such regulatory compliance.
● Extension of Deferral – A borrower’s obligation to pay principal and
interest on their outstanding PPP loan will be deferred until the date on
which the SBA remits the amount of forgiveness to the borrower’s
lender. That means that borrowers will not be in a situation where they
are awaiting final approval of forgiveness but are obligated to make
payments on the loan. Note, however, that a borrower is not permitted
to extend the forgiveness process forever. A borrower must apply for
forgiveness within 10 months of the last day of the covered period.
● Payroll Tax Deferral – The provision in the CARES Act which made PPP
borrowers ineligible for the deferral of payroll taxes is being deleted. As a
result, PPP borrowers can defer the payment of employer payroll taxes
that would be due from March 27, 2020-December 31, 2020. Half of the
deferred amount must be paid by December 31, 2021 and the other half
must be paid by December 31, 2022. Under prior guidance, PPP
borrowers were eligible for the deferral until they received forgiveness
on its PPP loan.
What Should Borrowers Do Now?

As noted above, while some of these changes are relatively
straightforward, others will require additional guidance from the SBA. Any
borrower that hopes to qualify for the safe harbors related to inability to hire
qualified employees or inability to restore business should be prepared to show
level of documentary evidence on why the borrower should qualify for either
of these safe harbors.
For borrowers that have continued to operate, used the PPP proceeds
as provided in the original version of the program and will be shortly
completing their initial eight-week covered period, it is likely that you will want
to apply for forgiveness based on the initial period. If you extend for 24 weeks,
your analysis related to loss of forgiveness due to reduction in headcount
and/or reduction in wages will be based on this longer period. Borrowers will
not be permitted to seek additional funding under this bill, so the amount of
your loan is still based on the original eight-week calculation.
If you have questions about the effect of this legislation and what options
you should consider, please do not hesitate to reach out.
This update is for information purposes only and should not be
construed as legal advice on any specific facts or circumstances. Under the
rules of the Supreme Judicial Court of Massachusetts, this material may be
considered as advertising.

How to Prepare for Maximum PPP Loan Forgiveness

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