Dear Business Owners, Colleagues, Friends, and Acquaintances:
As I mentioned before, even though today is the first day to apply to SBA’s Payroll Protection Program (PPP), which is on a first-come-first-served basis. I don’t necessarily think it is necessary to rush out and apply for PPP, simply because the majority of lending institutions that is approved to lend SBA 7(a) program is simply not ready yet.
This is one PPP applicant’s experiences today (4/3/2020):
Attempt #1 to call my bank’s PPP application hotline: 55 minutes on hold and then “the system is experiencing problems” and disconnected. I hope they add an option to turn off elevator music.
Maybe it is a good thing that you did not place a call to your bank!
Yes, timing is important, and we want to get ready and be in the queue as soon as possible.
While waiting for SBA approved lenders to sort things out, and I don’t mean you can slack off because it is a time-sensitive matter, you can use the time and get all your documents ready. I have compiled a list of documents that you may want to have available either in paper or digital format.
What bank may need from you:
- 2018 or 2019 Tax Returns of each borrowing entity
- Articles of Incorporation/Organization of each borrowing entity
- By-Laws/Operating Agreement of each borrowing entity
- All owners Driver’s Licenses
- Payroll Expense verification documents to include:
- IRS Form 940 and 941
- Payroll Summary Report with the corresponding bank statements
- If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with the corresponding bank statements, and,
- Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.
- 1099s (if Independent Contractor)
- Certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States
- Trailing twelve-month profit and loss statement (as of the date of application) for all applicants
- Most recent Mortgage Statement or Rent Statement (Lease)
- Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water)
If your business is facing legal challenges due to COVID-19 and the response to it, call us now for a COVID-19 Strategy Session, and let’s talk about how we can help you to run your business without worrying about the underlying legal consequences. Call us now at (714) 415-2007 or reserve your spot by clicking the link: https://bit.ly/COVID19StrategySession