On March 31, 2020, the official application for the Paycheck Protection Program was published on the website of the U.S. Department of Treasury along with an overview of the program and information for both borrowers and lenders. This guidance indicates that small businesses and sole proprietorships can apply starting April 3, 2020. Independent contractors and self-employed individuals can apply beginning April 10, 2020.
Given the sheer volume of expected applications could create funding delays, we recommend that businesses contact their current business lender in order to initiate the process and begin gathering the necessary documents as quickly as possible. While it is not certain which documents are needed, many lenders have indicated that the items needed for applications might include the following:
- Copies of 2019 W-2s and W-3
- 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
- Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the following information:
- Gross wages for each employee, including officer(s) if paid W-2 wages.
- Paid time off for each employee
- Vacation pay for each employee
- Family medical leave pay for each employee
- State and local taxes assessed on an employee’s compensation
- 1099s for independent contractors for 2019
- Documentation showing total of all health insurance and dental insurance premiums paid by the company or owner(s) under a group health plan.
- Include all employees and the company owners
- Document the sum of all retirement plan funding that was paid by the company or owner(s) (do not include funding that came from employees out of their paycheck deferrals).
- Include all employees and the company owners
- Include 401K plans, Simple IRA, SEP IRAs
The following information is available on the Paycheck Protection Program section of the website for the U.S. Department of Treasury:
- The application for borrowers is available HERE
- Information for borrowers may be found HERE
- An overview of the program may be found HERE
- Information for lenders may be found HERE
We stand ready to assist with any questions regarding the program, loan application and calculations or other issues impacting your business. Don’t hesitate to contact us if we can help in any way.