We’ve made accessing COVID-19 relief funding from the Paycheck Protection Program easier to help get you up and running asap.

Just as you’re readying your doors to reopen, we’re giving you the scoop on the Paycheck Protection Program (PPP) loans. How does it work? What are the perks? And, most importantly, who qualifies? We’ll fill you in on all the details.

About The Paycheck Protection Program

A part of the Small Business Administration’s Coronavirus Aid, Relief and Economic Security Act (CARES), PPP loans offer relief to small businesses, self-employed individuals, and independent contractors. These federal loans can be forgiven. The catch: SMBs must keep all staff on payroll for eight weeks and put funds towards payroll, rent, mortgage interest, utilities, group healthcare costs, and debt obligations acquired before February 15, 2020.

 

How Much Are PPP Loans Worth?

You can receive up to 2.5 times of your average monthly payroll for 2019. Loans max out at $10 million.

 

How does the PPP Work?

Having these documents will make getting funds secure, simpler, and speedier.

• Loan eligibility verification
• Application document checklist
• Loan estimate
• Application submission to SBA
• Notice of loan approval
• PPP funds issued

 

Who Can Apply?

• Small businesses with few than 500 employees
• Small businesses meeting SBA size requirements
• Sole proprietors, independent contractors, self-employed individuals, and single member LLCs
• Corporations, professional corporations, general partnerships, LLCs, and nonprofits

 

What Documents Are Required To Apply?

Full disclosure: deciphering what paperwork your specific needs to apply can be a hassle. To help, we’ve broken it down into groups and business types.

 

You are a sole proprietor, independent contractor, single member LLC, OR self-employed individual WITH EMPLOYEES:

• Color copy of a government-issued ID. We’re talking both front and back.
• 2019 1040 Schedule C
• 2019 IRS form W-3
• 2019 IRS form 940
• W-2s for employees making over $100K
• Payroll statement covering February 15, 2020
• Recent statement of any outstanding Economic Injury Disaster Loan

You are a sole proprietor, independent contractor, single member LLC, or self-employed individual WITHOUT EMPLOYEES:

• Color copy of a government-issued ID, both the front and back.
• 2019 1040 Schedule C
• Substantiation of self-employment
• 1099-MISC for independent contractors
• 2020 invoice, bank statement, or book of records showing you were operating effective February 15, 2020
• Recent statement of any outstanding Economic Injury Disaster Loan

 

You are a SEASONAL corporation, professional corporation, general partnership, LLC, or nonprofit:

• Color copy of a government-issued ID (front and back)
• Organization documents
• Payroll statements
• W-2s for employees outside the US
• W-2s for employees making over $100K
• Recent statement of any outstanding Economic Injury Disaster Loan

 

You are a NON-SEASONAL corporation, professional corporation, general partnership, LLC, or nonprofit:

• Color copy of a government-issued ID. Again, front and back.
• Organization documents
• 2019 IRS form W-3
• 2019 IRS form 940
• W-2s for employees outside the US
• W-2s for employees making over $100K
• Recent statement of any outstanding Economic Injury Disaster Loan

If you are a small businesses still looking for a Paycheck Protection Program loan, you might want to try a lender approved by the SBA that specializes in capital products for small and diverse businesses like MBE Capital Partners.