If you’re a small business owner, you may be wondering how to apply for a PPP loan . Here’s a step-by-step guide to help you get started.
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Applying for a PPP Loan
The process for applying for a Paycheck Protection Program loan is relatively simple and can be done entirely online. You’ll need to gather some personal and business information before beginning the application, which you can do through the Small Business Administration’s website. Once you have all of the required information, the application process should take no more than a few minutes to complete.
Research the SBA’s PPP program
Before you apply for a PPP loan, you should research the SBA’s PPP program to make sure that you meet the eligibility requirements. You can find more information on the SBA’s website.
You will also need to gather some required documentation, including:
-Your most recent tax return
-Your business license
-Articles of incorporation
-Proof of business activity for the past 12 months (bank statements, tax forms, etc.)
Once you have gathered all of the required documentation, you will need to complete and submit a PPP loan application. You can find the application on the SBA’s website.
After you submit your application, a representative from the SBA will contact you to discuss your loan options and next steps.
Find a participating lender
The first step in applying for a Paycheck Protection Program (PPP) loan is to find a participating lender. You can find a list of participating lenders on the SBA’s website.
If you already have a business relationship with a bank, credit union, or other lending institution, you may be able to apply for a PPP loan through that lender.
Many lenders are still finalizing their processes for accepting and processing PPP applications. You should contact your chosen lender directly to discuss your options and learn more about their process.
Complete and submit a PPP loan application
You will complete and submit your PPP loan application to the lender of your choice.
The SBA does not lend money directly to small businesses under the PPP.
We work with commercial lenders, such as banks, credit unions, and non-bank lenders, to provide financing to small businesses.
The application asks for information about your business and its payroll costs.
You will also need to provide supporting documentation, such as payroll reports.
Applying for PPP Loan Forgiveness
Review the SBA’s PPP loan forgiveness application
The process of applying for a PPP loan forgiveness can be boiled down to five main steps:
1. Review the SBA’s PPP loan forgiveness application.
2. Gather the required documentation.
3. Calculate your eligible expenses.
4. Submit your loan forgiveness application to your lender.
5. Await a decision from the SBA.
The first step is to review the SBA’s PPP loan forgiveness application, which you can find here. It’s important to note that there are two versions of this form: one for borrowers who received their loans before June 5, 2020, and another for borrowers who received their loans after that date. Make sure you’re using the correct version of the form before you proceed.
Next, you’ll need to gather all of the required documentation for your application. This includes things like receipts, invoices, bank statements, and payroll records. You can find a full list of what’s required in the instructions for the PPP loan forgiveness application form.
Once you have all of the required documentation assembled, it’s time to calculate your eligible expenses. This is perhaps the most complicated part of the process, as there are many different expenses that can potentially be included in your calculation (e.g., payroll costs, mortgage interest payments, rent payments, etc.). The instructions for Form 3508 include a detailed breakdown of what expenses are eligible for forgiveness and how to calculate them correctly.
Once you’ve calculated your eligible expenses and completed the rest of Form 3508, you’re ready to submit it to your lender for review and decision. The lender has 90 days to review your application and make a decision on forgiveness; if they approve your application, they will send it along to the SBA for final review and approval (or denial). The SBA then has 90 days to make a decision on your loan forgiveness application; if they approve it, you’re done! If not, they will provide you with reasons why your application was not approved and what steps (if any) you can take to appeal their decision.
Complete and submit the PPP loan forgiveness application
Applying for PPP loan forgiveness may seem like a daunting task, but it doesn’t have to be. Here’s a step-by-step guide on how to complete and submit the PPP loan forgiveness application.
1. Gather all the required documents. This includes your PPP loan promissory note, loan forgiveness application, and any supporting documentation (e.g. payroll reports, bank statements, etc.).
2. Fill out the loan forgiveness application. You will need to provide information about your business, the PPP loan, and how the loan was used.
3. Submit the completed application and supporting documentation to your lender for review and processing.
4. Once your lender has reviewed and approved your application, they will notify you of the forgivable amount and release the funds to you accordingly.
What to Do If You’re Denied for a PPP Loan
If you’ve been denied for a PPP loan, don’t worry- there are still options available to help you get the funding you need. You can reapply for the loan with a different lender, or you can look into other funding options. In this article, we’ll go over what to do if you’re denied for a PPP loan so that you can get the funding you need.
Review the SBA’s PPP eligibility requirements
To be eligible for a PPP loan, you must meet the following criteria:
-You must be a small business owner, sole proprietor, independent contractor, or self-employed individual who was in operation on February 15, 2020
-You must have paid salaries and payroll taxes
-You must have a principal place of residence in the US
-You must have a Social Security number
If you meet all of the above criteria, you can apply for a PPP loan through your local bank or credit union.
Contact your lender to discuss your options
If you’ve been denied for a PPP loan, you have a few options. You can:
-Contact your lender to discuss your options. They may be able to tell you why you were denied and what you can do to improve your chances of getting approved in the future.
-Apply for a different type of loan. There are other programs available that can help small businesses get the financing they need.
-Find another lender. If your first lender denies you, try applying with another one. You may have better luck elsewhere.
No matter what you do, make sure you keep track of all the documentation and paperwork related to your loan application. This will help you if you need to appeal your denial or apply for a different type of loan in the future.
How to Prepare for Your PPP Loan Application
The PPP loan application process can be confusing and time-consuming. However, if you take the time to prepare and gather the required documentation, the process will be much smoother. In this article, we will walk you through the steps you need to take to prepare for your PPP loan application.
Review the SBA’s PPP eligibility requirements
The first step in preparing for your PPP loan application is to review the SBA’s eligibility requirements. To be eligible for a PPP loan, you must:
-Be a small business, nonprofit organization, veteran organization, or Tribal business concern
-Have fewer than 500 employees
-Be able to demonstrate that you have been affected by the COVID-19 pandemic
-Use the loan proceeds for eligible expenses, such as payroll costs, rent, mortgage interest, or utility payments
Gather the required documentation
In order to complete your PPP loan application, you will need to gather the required Small Business Association (SBA) and banking documentation. This includes:
-Your business’s most recent tax return
-Your business’s personal financial statements for all owners with a 20% or greater stake in the company
-Your business’s most recent monthly operating statement
-Your business’s payroll processor records or payroll tax filings for the 12 months prior to the loan application date
-Your bank statements for the three months prior to the loan application date
-Any other relevant documentation that may be required by your lender
Contact your lender to discuss your options
Before you begin the process of applying for a Paycheck Protection Program (PPP) loan, it’s important to understand the requirements and eligibility criteria. This will help you determine if you meet the qualifications and whether or not this is the right type of loan for your business.
Once you’ve done your research and you’re ready to apply, the first step is to contact your lender. They will be able to answer any questions you have about the application process and help you get started.
The SBA has a network of 7,000+ participating lenders, so finding one should not be difficult. You can use the Find a Lender tool on their website to search for a list of lenders in your area.
Be sure to shop around and compare rates before you decide on a lender. Remember that the interest rate is not the only cost associated with a loan, so be sure to ask about any fees that may be charged.