Paycheck Protection Program

Jefferson Bank has partnered with BDO, a nationally recognized accounting firm, to create an online portal that will allow you to complete the loan forgiveness application and upload your required documentation.

Your relationship banker will notify you to expect an email to register for the online application. Please keep this email as it has a unique link for accessing the online portal. Once you have registered, you may view, change, review or submit your application at

The following materials have been created to help you navigate through this process:


Do you use Form 3508-EZ or Form 3508?

You can use the much simpler Form 3508-EZ if any of these three applies to you:

  1. You (1) are a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application AND (2) did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form you submitted to the bank, or
  2. You (1) did not reduce the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period AND (2) did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period compared to the period between January 1, 2020 and March 31, 2020, or
  3. You (1) were unable to operate between February 15, 2020, and the end of the Covered Period at the same level of business activity as before February 15, 2020 (due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19) AND (2) did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period compared to the period between January 1, 2020 and March 31, 2020.

(Very important and helpful to you: When determining satisfaction of the criteria above for #2 and #3 ignore any reduction of salary or wages for employees that had annualized compensation of more than $100,000 in 2019 or any and all owner employees, so that does not count against you. For #2 above, ignore reductions of employees that arose from an inability to rehire individuals who were employees on February 15, 2020 if the you were unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020 and also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused.)

Which “Covered Period” should you choose: 8-weeks or 24-weeks?

If your loan was received prior to June 5, 2020 and you spent 100% of the proceeds in 8-weeks on allowable expenses and at least 60% of that spend was on payroll costs, consider electing the 8-week period. If you reduced compensation of any non-owner employee during covered period by more than 25% or if the average FTE for the 8-weeks period is less than the comparison periods after applying the exceptions and safe harbors, you will need to have spent more than your total loan amount to absorb the calculation reduction. Entering your numbers in the portal for preliminary results can illustrate if you achieve 100% forgiveness. If not, you can wait and see if the 24-weeks period gets you the maximum loan forgiveness. By-passing the 8-week Covered Period does not lock you in to the full 24-week Covered Period. Applications can be filed at any time 100% of the loan funds have been spent, though you will want to make sure the reductions do not impact full loan forgiveness if applying before the end of the Covered Period.

What payroll period should you choose for determining payroll cost spend?

You can use the regular covered period that begins on the receipt of your loan funds to accumulate your payroll costs. Your costs won’t be limited to exact number of days your selected covered period (56 or 168 days) because the rules allow the entire amounts for payrolls paid during the Covered Period and amounts incurred but paid soon after the end of the period. This paid and incurred rule allows cost covering more than 56 or 168 days to be submitted for forgiveness. An easier method is available under the Alternative Payroll Covered Period that allows borrowers with weekly and/or bi-weekly payrolls to sync the Covered Period for payroll costs with the first day of the payroll period after your PPP loan is received. But you should evaluate whether the Covered Period or Alternative Payroll Covered Period results in a higher amount of includible costs in the determination for loan forgiveness.

Method of determining FTEs for the FTE loan forgiveness reduction.

Instead of calculating an FTE fraction (not to exceed 1.0) for each employee, you can elect to treat any employee averaging 40 hours per week or more as an FTE of 1.0 and all other employees as a FTE of 0.5. This is a simpler calculation if you don’t have an FTE report readily available. The portal allows you to choose this simpler method and therefore you can run preliminary calculations before you spend unnecessary time on the regular method. If this simpler method results in your FTE quotient being 1.0 (the maximum quotient) you will not need the regular method to avoid a reduction in your loan forgiveness because of a decrease in FTE.

Time Period for Denominator in FTE quotient (Form 3508 only).

In determining your FTE quotient the Numerator is the average FTE count for your Covered Period and the Denominator is the average FTE count from a preCOVID-19 reference period. In determining your FTE count for the Denominator, you can choose between two periods and take the lower count – which is what you want to do. Your choice of periods is (1) the time period from February 15, 2019 to June 30, 2019, or (2) January 1, 2020 to February 29, 2020. If your employee count grew from 2019 to the first part of 2020 you are likely better off with time period (1). But make sure you run the numbers and take the lower number.

Where do I go to check the status of my application?





We recommend that you visit the US Treasury and SBA resources for up-to-date information.

U.S. Department of the Treasury

U.S. Small Business Department Paycheck Protection Plan

Investment and Insurance Products are:

  • Not insured by the FDIC or any Federal Government Agency
  • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

Deposit products offered by Jefferson Bank. Member FDIC.