What Documents Are Needed to Apply for SBA’s Paycheck Protection Program?
The PPP will provide financing to businesses affected by COVID-19 and can be used for payroll, rent, and utilities. By offering this financing, the SBA hopes to assist small businesses in overcoming financial hardships and keep their employees during this uncertain time.
Currently, loan amounts will equal 2.5 times a business’s average monthly payroll, up to $10 million.
If you’re interested in applying for the SBA’s Paycheck Protection Program, you’ll need to compile certain paperwork first. In this post, we’ll list the necessary documents so that you can be one step closer to financial solvency.
The Documents You’ll Need to Apply for the PPP:
- Documentation proving your business’s start date: All businesses must prove that they were formed prior to February 15th, 2020 in order to qualify.
- Bank account and routing number: All applicants must supply their business’s banking information.
- Completed Application: To fill out the SBA’s Paycheck Protection Program application form, click here.
Self Employed Individuals, Sole Proprietors, and Individual Contractors:
- Business owners that fall into this category must submit their 2019 IRS Form 1099-MISC for any independent contractors paid. This amount can’t exceed $100,000 for the year.
- If you operate as a sole proprietor, you’ll need to submit your 2019 IRS Form 1040-C.
Businesses with Employees:
- The Following IRS forms:
- 2019 IRS Form 941 for quarterly salary, wages, commissions, and tips.
- 2019 IRS Form 944 (annualized).
- 2019 IRS Form W-3.
- 2019 IRS Form 940 for any unemployment costs.
- 2019 IRS Form 1099-MISC for any independent contractors paid, not to exceed $100,000 for the year.
- 2019 IRS Form 1040-C if your business is a sole proprietorship.
- Monthly payroll statements that include this information:
- Salary, wages, commissions, or tips (not exceeding $100,000 annually for each employee).
- Costs for vacation, parental, family, medical or sick leave.
- Costs for separation or dismissal of employees.
- State and local taxes assessed on employee compensation.
Navigating the COVID-19 crisis as a small business owner is proving to be very challenging. However, by applying for the SBA’s Payment Protection Program, you can work to keep your business’s safe. To learn more about the CARES Act, please click here.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.