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Process Automation for the SBA Paycheck Protection Program Loan Forgiveness

An important component of the $2T Coronavirus Stimulus Program is the provision of a Paycheck Protection Program (PPP) with over $650B designated to assist US small businesses in dealing with the devastating impact of COVID-19.

The Small Business Administration is backing the loans, but the processes for applying for these loans and equally as important, converting loans to forgivable grants, are different from other SBA programs. More lenders have participated in the lending program; and the application and documentation process will be streamlined.

The key questions are:

  • Which documents need to be reviewed to determine borrower eligibility and loan amount?
  • What documentation will be required for loan forgiveness?


Lenders will find it valuable to quickly process – and have third-party integrity and a documented audit trail for – the following documents to support payroll:

  • IRS forms 941 & 944- Quarterly payroll tax (previous 4 quarters)
  • IRS form 1096 (12 month payroll)
  • IRS form 1040 schedule C (Sole proprietor net income 2019)
  • W2 & 1099, and additional tax forms for all supported employees
  • Company bank statements
  • Articles of Incorporation


Ocrolus’ PPP Loan Forgiveness Solution


Ocrolus PPP automates the classification and extraction of data from documents required to convert SBA PPP loans into forgivable grants.

Since the initial CARES program launched, Ocrolus’ cloud-based solution has been deployed by numerous lenders to process hundreds of thousands of PPP applications. Ocrolus captures and digitizes payroll reports, bank statements, tax forms and other documents to substantiate and calculate PPP loan requests. As these loans are now becoming eligible for conversion to forgivable grants, originating lenders are facing the administrative burden of calculating payroll, utility, rent and mortgage payments by each borrower. Additionally, lenders need to document each calculation and provide best efforts to verify that the information is correct.


The Ocrolus PPP platform is a purpose-built solution for SBA loan forgiveness.

The cloud-based program is optimized to automatically capture payroll reports, utility bills, checks, invoices and associated financial documents.

As with the PPP loan origination program, Ocrolus is able to quickly on-board lenders with both batch image capture as well as direct API integration with existing loan origination programs.

Ocrolus helps lenders make smarter, faster underwriting decisions through the use of human-in-the-loop document analysis, machine learning, and other advanced technologies that streamline the review process and deliver actionable data with unparalleled accuracy and speed.


SBA PPP Loan Forgiveness Application


Payroll Expenses

  • Payroll Summary Report
  • Tax Forms
  • Paystubs
  • Bank Statements
  • State Quarterly Payroll Report

Non-Payroll Expenses

  • Utilities
    • Utility Bills
    • Invoices
    • Checks
  • Rent
    • Checks
    • Lease Agreement
  • Mortgage Interest Payments
    • Lender Payment Statement
    • Amortization Schedule
    • Checks


  1. Temporarily raises the maximum loan amount to $10 million through June 30, 2020. The maximum value of a company’s loan will be equal to the lesser of $10 million or 2.5 times the average monthly payroll cost in 2019. This includes wages for employees as well as expenses for paid sick leave, health care, and other benefits.
  2. Temporarily guarantees 100 percent of the loans, regardless of size.
  3. Temporarily confers eligibility to businesses–even sole proprietorships and independent contractors–with 500 or fewer employees.
  4. The maximum interest rate for these loans is now capped at 4 percent. Loan terms are still negotiated between borrowers and lenders and are a product of the prime rate, plus the LIBOR rate. However, rates may not exceed that limit.
  5. Waives the requirement that businesses show they can’t obtain credit elsewhere.
  6. Waives annual or guarantee fees for the loan and all prepayment penalties.
  7. Businesses won’t need to provide a personal guarantee or collateral.
  8. Expands the permitted use of funds to include payroll support, paid sick leave, mortgage payments, rent payments, and servicing existing debt.

Ready to go?

Discover how Ocrolus can solve your data capture and document review challenges.

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