When applying for the Paycheck Protection Program, here's what you'll see on the official application form.
Editor's note: On Tuesday, May 4th the PPP ran out of general funds and the SBA stopped accepting new PPP loan applications. A reserve of funds is still available for community financial institutions that lend to businesses run by women, minorities, and underserved communities. Additionally, a reserve of funds remains for applications previously submitted but not yet reviewed by the SBA. If you have already submitted your loan application, however, this does not guarantee you funding.
Average Monthly Payroll costs include:
While the PPP application form is simple, it's still being administered by banks, who require official documentation and proof to back up your application claims.
Below you'll find the documents that the various SBA-approved banks are likely to ask you for. This isn't an official list, since each bank could have slightly different requirements.
Some Payroll providers have "PPP" report downloads. These should be very helpful for your application.
Again, you'll be able to find these amounts on the PPP payroll report from your payroll provider. If you don't see that report, reach to your provider to clarify which report you should download.
This amount can also be found on your 2019 income statement, if you have one.
This amount can also be found on your 2019 income statement, if you have one.
If you're a sole proprietorthat was operational prior to June 30, 2019, you are required to submit a 2019 Schedule C for your PPP application, even if you haven't filed your 2019 taxes yet.
If you are a sole proprietor that started operations after June 30th, 2019, you can fill out a Schedule C for January to February 2020 to calculate your potential loan amount. For Line 13, you must include only â…™ of any depreciation deduction that would normally be claimed. Bank statements will have to be provided to substantiate the claimed net profit.
The SBA itself doesn't lend you the money, they just "back" the loan that the lender provides. You can check out the SBA's Lender Match tool to find an SBA-backed PPP lender.
If you're relying on payroll records for your PPP application, you should be all set through your payroll provider. You won't need bookkeeping to get your loan. However, once you get approved for the loan, we highly recommend you get bookkeeping to track your loan spending. This will give you the best chance of getting your loan forgiven.
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 (including January and February of 2020) 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.
We are also hearing reports that entrepreneurs who own more than one business are having difficulty getting relief funding when their businesses don't have cleanly separated finances. If you own more than one business, it's important to get separate bookkeeping done for each business. This will become doubly important when it comes time to prove your expenses for loan forgiveness.
We are offering free 1 Month Basic Bookkeeping to all new customers so you can experience Accracy's seemless and professional services.
Passive companies normally can't get an SBA loan. But under the PPP, there is an exception. Here's everything you need to know.
The Paycheck Protection Program offers forgivable loans if used correctly. If you don't receive forgiveness on the full loan amount, here's what you need to know about why and what can be done next.
Getting ready to start your own business? Our comprehensive, actionable guide covers everything from pre-launch planning to post-launch strategies.
