Your Guide to the 2021 Paycheck Protection Program: PPP Documents to Apply

Documents Required To Apply For A Ppp Loan

So many online applications do not allow for this. My job as a hospital nurse got eliminated last year due to covid after 20+ years. I started a home health agency July 24th but it took until now to get my license so I can hire & take on clients.

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How do I determine which application form to use (standard Form 3508,Form 3508EZ or Form 3508S)?

Enter the total amount paid by the borrower for employer state and local taxes assessed on employee compensation (e.g., state unemployment insurance tax); do not list any taxes withheld from employee earnings. The self-employed application for PPP opened up later than the one for other types of businesses. You can certainly try your bank and you can fill out a QuickConnect form with Nav (just go to to be matched to lenders making PPP loans.

  • Please refer to the Instructions for Borrowers listed on the specific forgiveness application used to apply for forgiveness.
  • If you choose not to submit your forgiveness application within 10 months after the end of your Covered Period, then you are required to start repaying the loan.
  • Schedule A worksheet – We may ask you questions related to payroll calculations you’ll make using the “Schedule A Worksheet” in certain cases.
  • Yes, you can receive full loan forgiveness if all PPP loan proceeds are used for eligible payroll costs.
  • If you answer Yes to questions 1,2, 5, or 6, you do not qualify for a PPP loan.
  • Please review the instructions to the loan forgiveness applications, available on the SBA Website, for more information about the safe harbors.

Having the correct paperwork at the onset is critical to securing a PPP loan. 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 consideration. If you’re self-employed and you haven’t filed your 2019 taxes yet, you will likely need to get your 2019 bookkeeping retroactively done so you can produce an annual income statement, which will show your net profit number. Once you get approved for the loan, ongoing bookkeeping will put you in the best position to prove your spending and get your loan completely forgiven.

In that respect I’m a sole proprietor – I never legally established “myself as contractor” as a separate business. When the contracting company pays me, they pay me the person/professional, directly and my payments are deposited into bank account completely separate from my business LLC. Billie – Since you can apply based on gross income you should absolutely try. I’m not sure what you mean by receipts though – what kind of receipts? I do recommend you at least fill out a tentative Schedule C. It shouldn’t be too hard but if you have questions an accounting or tax preparation service can help.

What is the Covered Period?

But if you get PPP and use it to pay yourself you’ll likely need to report those earnings during the applicable weeks to unemployment. If you file Schedule C for your income I assume you are paid via 1099. Kentia – you may be able to apply for one of the new PPP loans. There was mention in one of the Interim Final rules about releasing guidance for newer businesses but I haven’t seen that yet. There are some possible restrictions on that Tony. I believe I saw that addressed in some guidance but I don’t remember the exact place unfortunately. Treasury has all the guidance documents on this page.

Documents Required To Apply For A Ppp Loan

I do not pay myself a ‘salary,’ but my income is necessary to paying our bills. Nathan, I’m sorry to hear of your experience with your lender.

Step 1: Access your PPP Application

If you need more direct help with your business and available programs I suggest you contact your local SCORE or Small Business Development Center. They offer free mentors and many are providing help with these covid relief loans. I am an Uber Eats driver and qualified for PPP for the first round even though I showed a loss on my 2019 Schedule C. I submitted the forgiveness and I am running into issues. The initial application for calculating the payroll costs specifically states total gross salaries, wages, commissions.

Documents Required To Apply For A Ppp Loan

I lost my work as owner operator taxi driver in a Taxi company because lack of work.Can I have chance to get PPPLoan? Also I am not 100% certain on all of this since it’s a scenario not clearly addressed in the guidance. My best advice is to reach out to your SBA district office to see if someone there can advise. The instructions for calculating loan amount is in this document. Just keep in mind you may use 2019 OR 2020 – your choice.

How do I know if I can use SBA Form 3508S?

The forgiveness application process contains three steps. No, the only interest payments that can be forgiven is on a business mortgage obligation on real or personal property that was incurred Documents Required To Apply For A Ppp Loan before February 15, 2020. A loan secured by movable personal property is a chattel mortgage . Invoices and proof of payment for any other Covered Costs included on your forgiveness application.

Documents Required To Apply For A Ppp Loan

The SBA is going to be changing the formula for self-employed from Line 31 to Line 7 . If not you can apply at and we’ll match you to lending partners.


They may have an online portal to apply for forgiveness but we recommend keeping a copy of your calculations in case the SBA ever audits your loan. Under the CARES Act, reducing salaries or wages during the covered period by more than 25% generally reduces forgiveness. You apply for forgiveness with your lender and provide required documentation.

Your covered period must be a minimum of 8 weeks long . The vast majority of borrowers (around 92%) fall under this category. Those business owners can apply for PPP loan forgiveness one of two ways.

If it is not clear, you must annotate which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions). The exact forms required will depend on your business type.

  • Paycheck Protection Program doled out $790.9 billion in small-business loans to struggling businesses between April 2020 and May 31, 2021, when the program closed.
  • This is incredible news, as it will save borrowers and lenders a significant amount of time and effort.
  • All forgiveness applications for Wells Fargo PPP loans must be submitted using our online application.
  • You can certainly try reaching out to your lender to see if they will work with you.
  • If you report on a cash basis, you can simply print out your bank statements and compare your deposits (not including any PPP money you’ve previously received).

Use the Owner Compensation section to enter Owner compensation. The SBA will process our recommendation and notify Enterprise of its decision. The SBA is obligated to review and make a final decision within 90 days. C.Required – Select Yes or No if you would like to provide optional demographic information about your principals. M&T is dedicated to investing in the growth and sustainability of the clients and businesses we serve, attracting and retaining diverse colleagues so we can truly reflect our communities. Applicants must maintain several other documents detailed on Page 7 and Page 8 of the Form 3508EZ instructions. Applicants must maintain several other documents detailed on Page 4 and Page 5 of the Form 3508EZ instructions.

Documents You Must Submit

The SBA then has up to 90 days to confirm the loan forgiveness application before it remits funds to be applied to the PPP loan. In general, a reduction in FTE employees during the covered period reduces the loan forgiveness amount by the same percentage as the percentage reduction in FTE employees. Copy of lender amortization schedule and receipts or cancelled checks verifying eligible mortgage payments made during the Covered Period if included on application. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the Payroll Costs amount. Employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees. Borrowers are not to add employer retirement contributions made on behalf of self-employed individual or general partners, because such payments are already included in their compensation. If your loan was for more than $150,000, you will need to provide proof of how you spent your PPP loan.

” Selecting Yes will add an Owner Compensation section.Use the Employee Compensation section to enter employee compensation. All loans are subject to the updates from the PPP Flexibility Act, regardless of the loan agreement language. Therefore, as long as you submit an application for loan forgiveness within 10 months after the end of your covered period, loan payments will be deferred until we receive the SBA’s decision on your application. We request that you do not attempt to submit the paper forms from the SBA.

Step 2: Add or Confirm Existing Business Information

You may want to reach out to your SBA District Office to see if they can help. Did you report your income to the IRS using Schedule C? If so you can use the Schedule C to calculate your loan amount. However, if you are going to apply I suggest you do so asap. There are very limited funds available and they could run out before the program officially ends May 31, 2021. Unfortunately that’s the only way to get information about your PPP loan. However, the EIDL and Targeted Grant are still open for applications.

Employees at Time of Forgiveness Application – To determine the Headcount at the time of the loan forgiveness application, use a counting method that is consistent with how the Headcount was determined at the time of the loan application. For example, if the owner was in the employee count, be sure to include the owner in the employee count for forgiveness. See our Revenue Reduction Information page for specific details. The SBA has at least 90 days to review your PPP loan forgiveness application.