What Do I Need for a PPP Loan?
Contents
If you’re a small business owner, you may be wondering “What do I need for a PPP loan?” We’ve got you covered. Check out this blog post to learn more.
Checkout this video:
SBA Form 2483
Borrower Information
The first section of the form is borrower information. Enter the legal name of your business, your Doing Business As (DBA) name (if applicable), business address, business email, business phone number, and the type of business organization.
The type of business organization is important because it will determine what personal guarantee is required for the loan. A sole proprietor will only need to sign a personal guarantee, whereas a partnership will need all partners to sign a personal guarantee. If your business is an LLC, you will need to provide information about your company’s structure.
You will also need to provide the Employer Identification Number (EIN) for your business. This can be found on your most recent tax return or you can apply for one online through the IRS website. If you do not have an EIN, you can still apply for a PPP loan, but you will need to obtain one before the loan can be forgiven.
Loan Information
The SBA Form 2483 is the standard form for applying for a Paycheck Protection Program loan. As part of the application process, you’ll need to provide information about your business, your employees, and your finances.
You’ll need to have the following information handy when you fill out the SBA Form 2483:
– Your business’s Employer Identification Number (EIN)
– Your business’s legal name and address
– The names and addresses of all owners of your business
– A list of all employees, their job titles, and their addresses
– Your business’s financial information, including income and expenses
Personal Financial Statements
In order to apply for a Paycheck Protection Program (PPP) loan, you will need to complete and submit a personal financial statement. This statement provides lenders with information about your current financial situation, including your assets, liabilities, and income.
In order to complete your personal financial statement, you will need to gather some information about your finances. You will need to provide your most recent tax return, as well as statements for any outstanding loans or lines of credit. You will also need to provide information about your current income and expenses. Once you have gathered all of this information, you will be able to complete your personal financial statement.
Business Tax Returns
Federal Tax Returns
All businesses that apply for a PPP loan must submit their most recent federal tax return. If you have not yet filed your tax return for the most recent tax year, you must submit it with your PPP loan application.
The SBA will use your tax return to verify your business’s eligibility for a PPP loan. In addition, the SBA will use your tax return to calculate your maximum loan amount. For most businesses, the maximum loan amount is 2.5 times your business’s average monthly payroll costs.
State and Local Tax Returns
If you are applying for a PPP loan, you will need to provide your state and local tax returns for the past two years. This is because the SBA requires that all PPP loan applicants have a “demonstrated history of payroll expenses.”
Your state and local tax returns will show your business’s payroll expenses for the past two years. This will help the SBA determine whether or not you are eligible for a PPP loan.
If you have any questions about what you need to provide in order to apply for a PPP loan, please contact your local Small Business Development Center (SBDC).
Personal Tax Returns
Federal Tax Returns
If you are an individual taxpayer, you will need to provide your most recent federal tax return. This is because the loan amount you are eligible for is based on your annual net profit as reported on your tax return.
State and Local Tax Returns
One of the most important pieces of paperwork you’ll need for your PPP loan application is your state and local tax returns. These tax returns will help to show how much income you earned in the 2019 calendar year, which is one of the key pieces of information that the SBA will use to determine the amount of your loan.
In addition to your state and local tax returns, you’ll also need to provide your federal tax return from the 2019 calendar year. If you have not yet filed your taxes for 2019, you’ll need to do so before you can apply for a PPP loan.
Payroll Documentation
Payroll Processor Records
In order to qualify for a PPP loan, you will need to provide your payroll processor records from the last 12 months. These records should include:
-All forms W-2 for each employee
-The company’s most recent federal tax return
-State unemployment insurance tax filings from the last 12 months
-Documentation of paid sick leave or other paid time off policies
Payroll Reports
If you are self-employed, you will need to provide documentation of your eligible compensation, which includes wages, salaries, tips, commissions, or net earnings from self-employment. You will also need to provide documentation of any eligible health insurance, retirement, or state or local taxes you paid in 2019.
Other Documentation
Business Licenses and Permits
Before you can legally operate your business, you will need to obtain the proper licenses and permits. The specific licenses and permits required will vary depending on your business type and location. You can obtain the necessary licenses and permits from the federal, state, and local government level.
To get started, you should contact your local Small Business Administration (SBA) office. The SBA can help connect you with the resources you need to get your business up and running.
In addition to licenses and permits, there are a few other things you will need in order to start your business. These include:
-A business plan: This document outlines your business goals, strategies, and how you plan on achieving them.
-Business insurance: This will protect your business from any potential risks or liability.
– start-up funding: You will need money to cover the costs of setting up your business, such as renting office space, buying equipment, and hiring employees.
Personal Guarantees
In order to qualify for a Paycheck Protection Program (PPP) loan, you will need to provide a personal guarantee. This means that you, as the owner or signer of the loan, are responsible for repaying the loan in full if your business is unable to do so.
Your personal guarantee may be in the form of a personal promissory note, which is a legally binding document that outlines your repayment terms and conditions. You will also be required to provide collateral for your loan, which can be in the form of property, equipment, or even a personal savings account.
The SBA does not require a personal guarantee for all PPP loans, but it is typicallyRequired by lenders. If you are not able to provide a personal guarantee, you may still be eligible for a PPP loan if you can demonstrate that your business has strong credit and is able to repay the loan on its own.
