The Department of Treasury has released the Paycheck Protection Program application and supplemental information, all available on their website. It is expected that lenders will be able to begin processing loan applications on April 3rd, however the banks are still working through the supporting documents that they will require to approve a loan. In addition, they need a better understanding of how they will process the applications through the SBA.
It is imperative that if you intend to apply for a loan under the Paycheck Protection Program, you do the following:
- Begin completing the application and review the accompanying borrower guide.
- Contact your local banker to discuss the lender guide to ensure they are aware of program requirements and verify that your bank intends to support the program.
- Begin to assemble the following supporting payroll expense verification documents (this list may change):
- IRS Form 940 and 941’s for 2019 (because Q1 2020 941 is not available)
- Payroll Summary Reports as of dates to be determined
- A breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.)
- 1099s (for independent contractors)
- A certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States
- Trailing 12-month Profit and Loss Statement (as of the date of application) for all applicants month by month
- Most recent mortgage statement or rent statement (lease)
- Most recent utility bills (electric, gas, telephone, internet, water)
We will continue to monitor this closely and communicate as often as necessary to keep you informed of this rapidly moving process so that you are well prepared to apply as soon as the banks are ready.
If you have any questions as you are compiling this information and completing the application, please contact the LGA Cares team at firstname.lastname@example.org.