As lenders await more guidance from the SBA on applying for second round PPP loans, here is what you can be doing to prepare:
Small businesses with less than 500 employees will want to have quarterly 941 forms, yearly 940 or 944 forms, or the “CARES SBA-PPP” document from your payroll provider. The 941 quarterly tax return is the preferred document and is used to report the federal withholdings from most types of employees. Alternatively, you can provide your 2019 corporate tax return.
• Initial draw applicants will need to provide payroll tax filings such as 941, 940/944, Scheduled C, or payroll process records, as well as bank statements or bank connections, and/or other documents pending SBA guidance.
• Second Draw applicants must wait for the SBA to provide further guidance on required documentation. We do know that to “qualify” for a second draw they must demonstrate at least a 25% reduction in gross receipts in the first, second, third or fourth quarter of 2020 relative to the same 2019 quarter.
• Lenders are recommending that you only submit one application as duplicate applications will result in the rejection of both.
I recommend visiting www.bluevine.com or connecting with a participating lender right away if you are interested in applying. Once the window opens for application submission this time it is set (as of now) to close on March 31st or when funds run out. As I find out more I will promptly send updates.