PPP Loan Forgiveness Application Process for Domino’s Franchisees

July 22, 2020

Overview of PPP loan and forgiveness process:

The Paycheck Protection Program (PPP), part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The act provided billions in funding for small business relief across the country. D & S Management Services helped our clients obtain much needed PPP funding. On Friday, June 5, 2020, the Paycheck Protection Program (PPP) Flexibility Act was signed into law as a standalone legislation designed to ease current PPP forgiveness requirements, one of those being to extend the covered period from 8-weeks to 24-weeks. (Please see our other blog post on the PPP Flexibility Act). As we transition with our clients into the forgiveness portion of the PPP loan, we have assembled the following information to aid in applying and receiving PPP loan forgiveness.

The PPP loan forgiveness process is broken down into three separate events:

1. Application (Lender)

To receive loan forgiveness, a borrower must complete and submit the Loan Forgiveness Application (Form 3508EZ) to their Bank where they received the PPP funds from.

Once you have met the criteria for forgiveness, you may submit a loan forgiveness application any time between the period starting two weeks after the date of your loan and ending before the maturity date of your loan. You do not need to wait until the end of the 24-week covered period to apply.

D & S Management Services will help their clients complete the Loan Forgiveness Application and submit it with the required documentation to their bank.

2. Decision Issued (Lender)

Within 60 days from receipt of the completed application, the bank will review the application and issue a decision regarding loan forgiveness to the SBA.

3. Forgiveness Amounts Remitted (SBA)

If the SBA determines the borrower was eligible for full forgiveness:

  • Within 90 days after the bank issues their decision to the SBA, the SBA will, subject to any SBA review of the loan or loan application, remit the appropriate forgiveness amount to the Bank, plus any interest accrued through the date of payment.

If applicable, the SBA will deduct EIDL Advance Amounts from the forgiveness amount remitted to the Bank.

If the SBA determines that only a portion of the loan is forgiven, or that the borrower was ineligible:

  • If only a portion of the loan is forgiven, the forgiveness request is denied, or the SBA determines that the borrower was ineligible for the PPP loan, the SBA will remit only the approved forgiveness amount.
  • Any remaining balance due on the loan after the application of any approved forgiveness amount must be repaid on or before the maturity date of your loan. You will be notified by the Bank of the forgiveness amount and the date on which your first payment is due.

Eligible expenses “covered expenses” of the PPP loan are as follows:


  • Compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation;
  • Cash tips (reported tips) or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips);
  • Payment for vacation, parental, family, medical, or sick leave;
  • Payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement;
  • Payment of state and local taxes assessed on compensation of employees.

Mortgage interest, rent obligations, and utilities

  • Payments on which the obligation or service began before February 15, 2020.

Proper forgiveness documentation:

Payroll expenses

Bank account statements or third-party payroll service provider reports (D & S Management Services) documenting the amount of cash compensation paid to employees (gross wages).

Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the covered period or the alternative payroll covered period:

  • Payroll tax filings reported, or that will be reported, to the IRS (Form 941).
  • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
  • Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans included in the forgiveness amount.

FTE documentation

The average number of FTE employees on payroll per month employed between:

  • 02/15/2019 – 06/30/2019; or
  • 01/01/2020 – 02/29/2020

Other expenses (mortgage interest, rent, utilities)

  • Cancelled checks
  • Payment receipts
  • Accounts transcripts


As the PPP loan’s covered period draws to an end, D & S Management Services looks forward to aiding their clients with their forgiveness application. When requested by your bank or the SBA, it is important to be able to provide proper documentation for the PPP loan money spent on the above outlined covered expenses. As your remote accounting office, we at D & S Management Services have compiled the necessary required documentation. Running a business, such as a Domino’s, during these times is hard enough. You have a lot on your peel, let us at D & S Management Services help you with all your accounting needs.

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