Please note: To promote the access to capital, initially only community financial institutions can make First Draw PPP, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.
Prepare Your Documents:
Each lender may have different requirements, but you can begin collecting some commonly required documents, including:
Copy of Photo ID for all owners who own 20% of the business or more
2019 and 2020 Profit and Loss Statements to show revenue loss during 2020
2019 Business Tax Returns
For partnerships – include Schedule K-1 and IRS Form 1065
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 4 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 (FUTA) Tax Return
Form W-3: Transmittal of Wage and Tax Statements
Documentation to support Health Insurance and Retirement expenses incurred as a part of payroll expenses (for example: a statement from insurance or retirement company)
Here are some facts about PPP2:
Your Credit Score is not a primary consideration for a PPP loan
No security or collateral is required
100% of the loan is forgivable if spent on payroll expenses (60%) and other qualifying businesses expenses (40%)
Minimum documentation required
Just prove a 25% decline in income for any quarter of 2020 with the same quarter in 2019
Show you employ less that 300 employees
Loans are 2.5 times (3.5 for certain type of businesses) the average monthly payroll or monthly profits / Owners' draw for Independent Contractors, Single Member LLC, Sole Proprietor, Self-Employed
You can apply for PPP2 even if you received a PPP1 loan
Now that you know the facts,
what are you going to do?
Orange County Office of Economic Development can help answer your questions so that you can better navigate the application process.
Contact Bill Fioravanti for more information.