A Simple Breakdown of the Paycheck Protection Program Application:
What You Need to Know and How to Apply

What Is the Paycheck Protection Program

The Paycheck Protection Program authorizes up to $349 billion in forgivable loans to small businesses to keep their workers on payroll. The loans will be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The forgiveness will be reduced if employee headcount or salaries decrease.

Who Can Apply for this Loan

Small businesses can apply through any existing SBA 7(a) lender or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution. Lenders may commence processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

For additional information, please refer to the dedicated SBA Paycheck Protection Program website.

The SBA will process loans from current loan and/or deposit customers first. Also, to be eligible, you’ll need to open a transaction account—deposit, checking, savings—with your bank.

The Documents Needed to Apply Depending on Your Business Type

You’ll need to complete separate applications if you have loan requests for multiple business entities. Each application will need its own login and email address to be submitted successfully.

Corporations:

1 Payroll documents

  • At least one of the following (in priority order)

    • 2019940 Employers FUTA Tax Return, and/or

    • 2019W3 Transmittal Wage & Tax Statement, and/or

    • All 42019 Quarterly 941 Tax Reports

2 Payroll reports that show:

  • Federal Income Tax (FIT) paid and Federal Unemployment Tax (FUTA) withheld from employees and paid on behalf of employees since February 15, 2020

  • 2019 Employer contributions for health insurance, including employer contribution to HSA

  • 2019 Employer contributions to retirement benefits, including 401k plans, SimpleIRAs, SEPIRAs

If Applicable:

  • List of salaried employees with total compensation, including benefits, > $100,000

  • List of salaried employees with total compensation whose primary residence is outside the U.S.

  • If the business is seasonal, total payroll costs for period 2/15/2019 to 6/20/2019 is needed

3 Entity documents

  • Articles of Incorporation

  • Corporate Bylaws

If Applicable:

  • Shareholder Agreement

  • Certificate of Assumed Name

LLC

1 Payroll documents

  • At least one of the following in priority order:

    • 2019940 Employers FUTA Tax Return, and/or

    • 2019W3 Transmittal Wage & Tax Statement, and/or

    • All 42019 Quarterly 941 Tax Reports

2 Payroll reports that show:

  • Federal Income Tax (FIT) paid and Federal Unemployment Tax (FUTA) withheld from employees and paid on behalf of employees since February 15, 2020

  • 2019 Employer contributions for health insurance, including employer contribution to HSA

  • 2019 Employer contributions to retirement benefits, including 401k plans, SimpleIRAs, SEPIRAs

If Applicable:

  • List of salaried employees with total compensation, including benefits, > $100,000

  • List of salaried employees with total compensation whose primary residence is outside the U.S.

  • If the business is seasonal, total payroll costs for period 2/15/2019 to 6/20/2019 is needed

3 Entity documents

  • Certificate of Formation/Articles of Formation

  • Operating Agreement/LLCAgreement

If Applicable:

  • Certificate of Assumed Name

Sole Proprietor / Independent Contractor

1 Payroll documents

  • 2019 Personal Tax Returns

If Applicable:

  • 1099-MISC forms received in 2019

2 Entity documents

If Applicable:

  • Certificate of Assumed Name

Limited Partnership

1 Payroll documents

  • At least one of the following in priority order

    • 2019940 Employers FUTA Tax Return, and/or

    • 2019W3 Transmittal Wage & Tax Statement, and/or

    • All 42019 Quarterly 941 Tax Reports

2 Payroll reports that show

  • Federal Income Tax (FIT) paid and Federal Unemployment Tax (FUTA) withheld from employees and paid on behalf of employees since February 15, 2020

  • 2019 Employer contributions for health insurance, including employer contribution to HSA

  • 2019 Employer contributions to retirement benefits, including 401k plans, SimpleIRAs, SEPIRAs

If Applicable:

  • List of salaried employees with total compensation (including benefits) > $100,000

  • List of salaried employees with total compensation whose primary residence is outside the U.S.

  • If the business is seasonal, total payroll costs for period 2/15/2019 to 6/20/2019 is needed

3 Entity documents

  • Certificate of Formation/Partnership

  • Partnership Agreement

If Applicable:

  • Certificate of Assumed Name

Non-Profits

1 Payroll documents

  • At least one of the following in priority order

    • 2019940 Employers FUTA Tax Return, and/or

    • 2019W3 Transmittal Wage & Tax Statement, and/or

    • All 42019 Quarterly 941 Tax Reports

2 Payroll reports that show:

  • Federal Income Tax (FIT) paid and Federal Unemployment Tax (FUTA) withheld from employees and paid on behalf of employees since February 15, 2020

  • 2019 Employer contributions for health insurance, including employer contribution toHSA

  • 2019 Employer contributions to retirement benefits, including 401k plans, SimpleIRAs, SEPIRAs

If Applicable:

  • List of salaried employees with total compensation (including benefits) > $100,000

  • List of salaried employees with total compensation whose primary residence is outside the U.S.

  • If the business is seasonal, total payroll costs for period 2/15/2019 to 6/20/2019 is needed

3 Entity documents

  • Articles of Incorporation

  • Corporate Bylaws

  • IRS Determination Letter for non-profit status

If Applicable:

  • Shareholder Agreement

  • Certificate of Assumed Name

Tools and Helpful Lender Information

Paycheck Protection Program Lender Application: Click here

Lender Agreement and enrollment to participate in the SBA PPP for customers: Click here

Download the SBA Standard Loan Note (Form 147): Click here

How to reduce the application process from 30 minutes to 30 seconds

MX created the Easy SBA Portal in an effort to help you get critical funds into the hands of small business owners faster.

The Easy SBA Portal is an interactive version of the SBA application that streamlines the process for banks and credit unions, reducing the 30-minute application time to approximately 30 seconds. To help at this time, MX will be granting financial institutions an open-source, royalty-free license.

Get Free Access to Easy SBA Portal

Resources:

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