I’ve just finished the application process for the SBA PPP Loan, the special program the federal government recently rolled out as a result of the current Coronavirus COVID-19 situation.
A close business contact of mine who is extremely knowledgeable about and involved in government policies related to businesses spurred me into action because this was her response to my hesitation about whether or not to apply:
“If you are going to apply do it now. You can hold funds and not use until you know if forgiven. The funding will be depleted very quickly. I do know that people not going through their business banks are having a harder time getting reviewed and approved as your own bank gives preference to their customers.
I applied and got in line on 4/2 with my bank. Loan approved 4/6 and funding by 4/20.
I am praying I won’t need it but good to know it will be there. I think a good portion will be forgiven when proof is supplied…however I think it’s smart to proceed like it will be a loan that eventually goes to 4% interest rate. I intend to pay back all that’s not forgiven ASAP at the .5% interest rate.”
To help you save time, here’s a round-up of information I found to be helpful:
There was no visible link on my financial institution’s website, so I went to their search bar and typed first SBA then PPP. A page came up with details about the loan program.
It turns out my bank doesn’t offer this SBA / PPP loan, so the APPLY NOW link on their page I found transfers me to a portal where I can apply directly online.
Before doing all of this searching, I’d submitted a contact form on my bank’s website. They called me within 15 minutes to explain the portal from their website was the way to go. Most institutions are not going to originate this particular loan because it’s way too complicated to process and maintain. The rep also sent me this information in an email:
“[Bank Name] has made the Paycheck Protection Program available to members and non-members through an online application portal as a referral partner. Applicants are able to complete the application process entirely online, and access [our] extensive network of business lenders. Once you have completed your PPP application online, your application is anticipated to be assigned to a lender within 48 hours. You will receive electronic contact directly from the assigned lender.”
Here’s the documentation you’ll need to upload when you apply online (I copied/pasted directly from the application page):
- Driver’s License – Front
- Driver’s License – Back
- Or other government issued identification
- Payroll Register for the full 2019 year
- Payroll Register for all available months in 2020
You must also upload the following documents if any of the following apply to you:
If you have employees:
- All 2019 IRS Form 941s or 2019 IRS Form 944
If you are an independent contractor:
If you are self employed:
- 2019 IRS 1040 Schedule C
- 1099-MISC for each self employed owner
The application itself takes about 10 to 15 minutes to complete, not including if you need to search for your aforementioned documents.
SBA financial assistance may not be the best option for your situation:
Here are other possible financial resources, including those specific to states: Relief Resources for Small Business
Be sure to examine all your options (and the option details) before applying and accepting any funds. If you do decide to apply for a PPP loan, hopefully this information will save you time. Good luck and stay healthy!