The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks, and the money is used for payroll, rent, mortgage interest, or utilities.
Loans from the Paycheck Protection Program will be available for amounts equaling 2.5 times the average monthly payroll for a business, up to $10 million.
Who can apply for PPP?
If your business is any of the following, you can apply for PPP.
Sole Proprietorship, Independent Contractor, Self-employed, Single-member LLC
Corporation, Professional Corporation, General Partnership, LLC, Nonprofit
Which Documents will you need to apply for the PPP loan application?
Most of our businesses will fall under the first category, and so if your business is Sole Proprietorship, Independent Contractor, Self-employed, Single-member LLC, you will need the following.
|If you have employees||No Employees|
|Government Issued ID (Front and Back)||Government Issued ID (Front and Back)|
|2019 1040 Schedule C**||2019 1040 Schedule C**|
|2019 IRSForm W-3||1099-MISC for Independent Contractors|
|2019 IRS Form 940||2020 invoice, bank statement or |
book of record to establish you were operating effective
|W2s for any employees earning more than $100,000|
|Payroll statement covering 2/15/2020|
Your most recent statement from your outstanding Economic Injury Disaster Loan, if you have received or been approved for an EIDL loan.
Most importantly, to apply for PPP, you should contact the bank that you are currently banking with; this will make the process lot faster, but in case you do not have that option, we suggest that you apply with KABBAGE.