After being involved with a large number of applications, we have summarized some relevant tips when you apply. Keep in mind that each financial institution is different, they have different intake process (online portal, email, etc.) and different requests.
- Have the 1st round PPP information available – a) PPP 1st round SBA loan number and b) Dollar amount of 1st round PPP
- Disclose who are the owners of the business (name, address, SSN, % ownership) and if those owners have other companies
- Have the payroll information ready
- 2019 and 2020 w2s and w3
- 2019 and 2020 941s
- 2019 and 2020 payroll State reports
- If you did not have payroll, such as sole proprietorship or 100% LLC owner (Schedule C) or partnership/LLC with several members (1065 -K1), then, your loan will be calculated on the net income or K1s so you will have to provide the tax returns.
- Have a color copy of the driving license (front and back)
- Some of the financial institutions are requesting proof that your business was operating in February 2020 – provide bank statements or 941 2020 Q1 (if you have payroll)
- Some of the financial institutions are requesting the initial letter from the IRS (Entity registration), if you do not have it provide the tax return as 1065, 1120–S and 1120 indicate on the first page the “date business was established”
- Some of the financial institutions are requesting the tax returns for the business
- Some of the financial institutions are requesting to upload the application form 2483-SD with the certifications and wet signature (scanned).
- Depending on the loan amount (over $150,000), you might be requested to provide the proof of reductions of revenues – Upload the Excel file with your deposits (revenues) by quarter and/or the bank statements for the applicable quarters (i.e. 2019 Q2 and 2020 Q2 – April, May and June)
Note this is not a comprehensive list and each financial institution has a different process, so if you have questions, reach out to your financial institution. We have communicated to our clients to do it asap and encourage anyone to apply as funds are on a first come, first serve basis.