Paycheck Protection Program Funds Are Coming. Here’s How to Prepare for Your Application.
UPDATE, Monday, January 11: Paycheck Protection Program funds will be available for select lenders and borrowers beginning today. Contact your lender to see when your business can apply for PPP funds and prepare for your application by gathering the required information.
Good news for small businesses struggling in the pandemic: more Paycheck Protection Program funds are on the way. Congress recently appropriated $284 billion for forgivable business loans, and, while the application date and specific guidelines have not yet been announced, now is as good a time as any to pull together some paperwork.
You may still be eligible to receive a second PPP loan if you received one in the first round of funding.
The documents required may vary depending upon the bank, but here is a compilation of what you’ll need to prepare when it’s time to apply.
—Copy of a photo ID for owners who own at least 20% of the business
—2019 and 2020 profit-loss statements to show 2020 revenue losses
—2019 business tax returns: For partnerships – include IRS Form 1065 and Schedule K-1; for sole proprietors – include IRS Form 1040 Schedule C
—Articles of incorporation / business organizational documents
—Payroll reports with a list of gross wages, paid time off and taxes assessed for all employees for all 12 months of 2020
—2020 employer IRS documents, including one of the following for all four quarters of 2020: Form 941 (Employer’s Quarterly Federal Tax Return), Form 944 (Employer’s Annual Federal Tax Return for smallest employers), Form 940 (Employer’s Annual Federal Unemployment Tax Return) and Form W-3 (Transmittal of Wage and Tax Statements)
—Documentation to support health-insurance and retirement expenses incurred as a part of payroll expenses (e.g., a statement from an insurance or retirement company)
Be sure to sign up to receive updates from your lender and from the city’s Small Business Services administration to keep up to date on when and how you can apply.
photo: iStockTags: paycheck protection program, ppp