$60 billion of that is specifically set aside for smaller banks and lenders. That is key here for funding.
Economic Injury Disaster Loans (EIDL) are also receiving a $10 billion replenishment.
We’ve received a few popular questions during the first round of SBA funding on Ark Academy’s Live Q&A tool like:
- “FFCRA? CARES Act? What does this mean for me and my business?”
- “I don’t know if an EIDL or PPP loan is best for my current situation. Which loan should I pursue?”
- “My bank is causing me problems with my PPP loan, what do I do?”
Due to the demand of big banks, it’s best to pursue funding from a local or community bank. On top of the $310 billion replenishment, corporations are also returning funds.
The pool may be deeper, but funds will still go fast. Documentation can make or break you application from being funded. Here’s what you must include for a complete application:
For businesses applying for a PPP Loan:
- 12 months most recent bank statements
- Payroll Register for the previous 12 months
- 944 Annual Tax Filings (2019)
- 941 Quarterly Tax Filings (2019, 2020 Q1)
For 1099 Independent Contractors or self-employed individuals applying for a PPP loan:
- Income and expense reports for 2019
- 1099s (under which you were paid)
- IRS 1040 Schedule C
For all applicants:
- Business account bank statements
- Each employee’s W-2 for 2019 and when applicable, Form W-2 C
- All 4 quarterly-filed Form 941 due to IRS within 30 days following quarter-end
- Annual IRS Form 940 due to IRS by January 31
- Each independent contractor’s 1099
- All 4 quarterly Form 1040-ES for self-employed individuals
- Also, when the applicant uses a 3rd party tax service, the 2019 YTD detail of payroll paid should be provided.
For Economic Injury Disaster Loans, you’ll need the following to apply:
- Loan application (SBA Form 5), completed and signed
- Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant
- Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available
- Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member
- Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used)
It’s time to act fast so that you’re prepared to get as much help as possible, with funds expecting to be gone much sooner than 2 weeks. If you’re approved for funding, it’s important to efficiently manage your Paycheck Protection Program funds, in order to facilitate the forgiveness process with ease.
We’re helping business owners create a path forward in a post-quarantine bounce-back, schedule time with us today to get started.