14 May, 2022 6 min read
In addition to meeting the size requirement (500 or fewer employees for most companies), you must show that your business has been negatively impacted by the coronavirus. You will do this, in part, by certifying on your PPP application that current economic uncertainty makes the loan request necessary.
Eligibility is further broken down to include:
As noted above, PPP loans are being administered by approved SBA lenders and are actually a new form of the existing SBA 7(a) loan program. When funds are available, you can apply for your PPP loan through any of the 1,800 participating SBA approved 7(a) lenders or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution.
Other lenders will be available to make PPP loans once they are approved and enrolled in the program. Start by consulting with your local lender as to whether it is participating. If you have trouble locating a lender, try using the SBA Paycheck Protection Program lender search tool. Bigger banks often have to process more applications. This is why it is recommended you start with local lenders.
Do not use any other road to apply for a PPP loan; scammers are already going after small business owners, reports the Federal Trade Commission, which filed a case against one such company on April 17. Only apply by first going to the SBA website. And know that the SBA will never ask for Social Security numbers, or bank account or credit card numbers up front, the FTC cautioned.
Your existing lender is often your best resource when applying for Covid-19 relief loans, as banks are typically more responsive to their current customers. That said, you might want to tap a community bank in your area. However, smaller lenders are getting money out the fastest. Take note that the bank may ask for you to sign up for a checking account in exchange for a PPP loan. While that’s an extra hurdle, at least you’ll be able to get the funds you need when you need it most.
Ultimately, you should widen your search. Different banks have deployed different resources, and some may be better at handling the influx of loans than others. Beware though, if multiple lenders submit a loan application to the government on your behalf, a fraud alert could be triggered. So it is advised that you ask for a guarantee that the lenders will contact you before submitting your file.
1.) SBA Application Signed for your reference, this is the same information filled in an online application.
2.) Addendum A
3.) Payroll from January 1 to December 31 2019
4.) W3 2019.
5.) 940 2019.
6.) Q1, Q2, Q3 and Q4 941-2019
7.) Bank statement for March 2020
8.) Drivers license ID
9.) Articles of incorporation
10.) All 2019 W2’s
11.) FEIN proof from IRS
12.) By-Laws and Minutes of your company
Here is a template for Addendum A (2).
| Legal Name | EIN | Business Type | Relationship | # of employees |
| “Company Name” | 00-0000000 | Type | % Ownership | 0 |
The Paycheck Protection Program is one of two programs designed to help small businesses during the coronavirus crisis. The other is the Economic Injury Disaster Loan (EIDL) program. While both programs are designed to help struggling businesses get back on their feet financially, they have slightly different goals which are suggested by the names of the two programs.
This information is brought to you by SWARMHR. Being a small business, we understand the importance we and our peers should take during these times. Please feel free to reach out to our team if you need more information.
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