Update, 8/7/20: The Paycheck Protection Program officially closes to new applicants on August 8, 2020. Congress is still debating whether to extend the program or to deploy another form of small business financial aid for those impacted by the coronavirus pandemic. We will update this page when new legislation becomes official.
Business owners are moving quickly to apply for loans through the Payroll Protection Program (PPP). The PPP is a new program introduced by the federal government to help small businesses meet their financial obligations despite the coronavirus pandemic, and it requires applying through SBA-accredited lenders with an array of specific forms and documents.
Because each SBA lender, from national banks to community-oriented credit unions, may have a slightly different application process, it’s best to check with your lender before submitting an application to see exactly what they’ll ask of you.
If you submit a PPP loan application that is incomplete or otherwise incorrect, you’ll have to reapply, and you’ll go to the back of the queue when it comes to loan application and consideration.
With that in mind, we’ve compiled a checklist of all the documents that an SBA lender will likely ask of you when applying. Be sure to have all of this on hand when it’s time to submit.
Small business owners applying for a PPP loan should come prepared with the following:
The SBA has a copy of its official borrower application form on its website. Most lenders will use this form, which requests information including:
Because PPP loans are specifically based on your payroll (you can borrow 2.5x your average monthly payroll, up to $10 million, to cover payroll as well as rent, mortgage interest, and utilities), you’ll need documentation that demonstrates your payroll.
Your payroll documentation should include:
Keep in mind that if your payroll is in Excel format, you’ll want to supplement this information with corresponding bank statements.
If you use payroll processing software or a PEO, your payroll solution may offer special PPP reports that will show gross wages, tips, vacation, benefits payments, and taxes.
If you’ve already filed your taxes for all four quarters of 2019 as well as Q1 of 2020, you can use the tax forms relevant to your business to demonstrate your payroll. Some lenders may ask for this documentation if it is available in conjunction with your payroll documents.
Official forms recommended include:
All owners listed on the application will need to include a color copy of a government-issued ID (front and back), such as a driver’s license.
Starting on April 10, 2020, independent contractors and self-employed workers became eligible to apply for PPP loans through an SBA lender.
Complete guide to PPP loans for independent contractors and self-employed individuals.
Each business type cited below should gather as many of the above forms that are applicable to them as possible, as well as include:
The above forms and documents should prepare you for the PPP loan application process. Be sure to stay in touch with your preferred lender throughout your time applying for a loan, from first contact on, to ensure you have submitted everything you need in order to secure your loan proceeds in a timely fashion.