Everything You Need to Know About Applying for the PPP Loan in 2021
PPP Loan- The Basics, Links and Details!
Dear Small Business Owner, $284 billion was just allocated for another round of the Paycheck Protection Program (PPP), a forgivable business loan offered through the federal government’s Small Business Administration (SBA) that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Determine How Much You Can Apply For You can apply for up to $2 million or 2.5 times your monthly payroll, whichever is less – if you are a restaurant or a hotel, you can apply for 3.5 times your monthly payroll up to $2 million. Loans will be forgiven (meaning you do not need to pay them back) if you use them for eligible expenses, including 60% for payroll expenses and 40% for other eligible operating expenses.
Small Business for America’s Future Informational Session: SBAF Co-Chair Anne Zimmerman, a small business CPA, hosted a discussion on the latest round of PPP, walking people through the details of the new program and answer small business owner questions. View recording here. Check out top resources here:
- To find CDFI’s and MDI’s: CLICK HERE
- PPP1 Information: CLICK HERE & HERE
- PPP2 Information: CLICK HERE
- How to calculate available PPP: CLICK HERE
- PPP Forgiveness: CLICK HERE
- Economic Injury Disaster Loan (EIDL): CLICK HERE
- Second Draw Borrower Application released by SBA 01/08/21, SBA form 2483-SD: CLICK HERE
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 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 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)
