How to Apply for a Paycheck Protection Program Loan

The first step to applying for a forgivable loan under the SBA Paycheck Protection Program is to find a lender. Because there are limited funds, it’s important to speak to an SBA lender as soon as possible if there are concerns about retaining staff and paying other expenses.

Find a Lender

Contact your bank to see if it is an SBA-approved lender. Your current banker likely already knows your business and will be able to help you navigate the application process. If it is not an SBA-approved lender, here is the list of the top 100 SBA lenders. You can also use this tool to find eligible lenders.

Download the Application

Lenders will accept applications until June 30, 2020, when the PPP loan program ends. Click here to download the application, which includes instructions. According to the SBA, the PPP loan application for self-employed or independent contractors was to go live April 10, 2020.

Needed Documentation

Be prepared to prove that your business was operational on Feb. 15, 2020, that you had employees and the amount of your average monthly payroll costs following instructions on the application form.

Items that you’ll need:

• payroll processor records
• payroll tax filings
• any Form 1099-MISC supporting contractor pay
• income and expenses from a sole proprietorship

The more information you gather up front, the faster the application will get processed. You’ll need to document how many employees you have because you must prove that you have 500 or less. You must document payroll costs because the maximum loan amount is based off payroll cost. Items that could help are payroll processor records, any tax file, payroll tax filings that are made on a quarterly basis.

The bank will ask for a copy of your driver’s license, as well as corporate structure, beneficial ownership and partnership information if it applies. If you’re are going to a bank that you don’t already have a relationship with, you’ll need to gather this documentation.

If this documentation isn’t available, you’ll need to provide other supporting documentation, such as bank records that can demonstrate the qualifying payroll amount.

Verification

Lenders are not required to conduct any verification if the borrower submits documentation supporting its request for loan forgiveness and attests that it has accurately verified the payments for eligible costs. While banks do not have to do any other additional due diligence beyond having a borrower fill out an application, some banks may ask for additional information.

Certification

It’s important to remember that you are filling out a federal form that subjects you to potential criminal liability. Make sure you are answering honestly. The loan application requires the borrower to initial certain certifications.

SBA PPP Frequently Asked Questions | ALTA PPP Frequently Asked Questions