While the first pool of $350 billion for the SBA’s Paycheck Protection Program (PPP) loans was a godsend for small businesses, it dried up faster than a drop of sweat in an Arizona desert thanks to the overwhelming demand. Fortunately, there’s a great push for another round of funds, and each one of us desperately hopes it happens. So what can you do to prepare in the meantime?
Get Your Documentation in Order
If you’re in the middle of filling out an application or haven’t done one at all, there were several forms of documentation required by the government, banks, and other lenders during the first round. While these requirements and specific documentation may change when round 2 begins, it’s better to over-prepare and provide more information than needed than it is to come up short and have your application rejected.
Standard Small Business Documentation Needs
Acceptable Payroll Documents (listed in order of the SBA’s seeming preference):
- 941 Quarterly Tax Filings (2019, 2020 Q1)
- 944 Annual Tax Filings (2019)
- Payroll Register for the previous 12 months
- 12 months most recent bank statements
- Color copy of a government-issued ID (front and back) for the applicant and all owners with a 20%+ share in the business
Additional Required Information:
- Your business start date
- NAICS code for your business industry
- Birthdate of all business owner with a 20%+ share (including the applicant)
- If your payroll report is in Excel format, it should be accompanied by 12 months of bank statements
Special Requirements for Other Business Models
Please also include as many of the above-listed items in your application as you can.
- Income and expense reports for 2019
- Owner’s Social Security number should be provided in addition to the business EIN
- 2019 IRS 1040 Schedule C
- 1099-MISC for each self-employed owner
- Income and expense reports for 2019
Fill Out an Application
While the application may or may not completely change if funding continues, our streamlined PPP loan application is still available for small businesses to utilize. Even though a completed application isn’t a guarantee of money, it might get your foot in the door and your small business in line for such if Congress approves additional PPP funds. To make the application process as easy and efficient as possible, we’ve created a detailed walkthrough for you to follow as you apply.
Find Ways to Save Money
Whether or not Congress approves a new wave of SBA funding, your business needs to take steps to stay on top of its finances. Look for areas to eliminate waste, cut back on unnecessary expenses, and take another look at your marketing methods. Consider looking into gift cards as a way for your business to keep money moving, or build out your online presence as you adapt to the changes caused by the coronavirus (COVID-19) pandemic. Talk to your business partners, employees, friends, and family for advice on ways to stretch every dollar you have—you may be pleasantly surprised by their money-saving insights.
Do Your Part to Make It Happen
The government moves at its own belabored pace, but we have the opportunity and duty to push the process along. You can sign petitions, reach out to your senator or representatives, and utilize other mediums to pester the government into action. Don’t shy away from using social media to encourage government officials to release funds and kick it into gear.
As we all wait to find out if the government will actually live up to the plans and half-promises they’ve made about releasing additional funds and providing small businesses with the help they need, we must take heart. In these desperate times, it’s incredibly easy to lose hope and sight of our goals. To save ourselves from the crushing weight of our circumstances, we need to stand and lift together. We are all struggling in the face of the social and economic hardships caused by the coronavirus (COVID-19) pandemic, but if we work together and help our friends, neighbors, and family, we’ll overcome each challenge we face. As hard as it may be, remember that these circumstances are temporary, and we will overcome them.