– 2019 Business Tax Returns

-Complete 2019 & 2020 IRS Quarterly 940, 941, 944 payroll tax reports

-1099’s for independent contractors for 2019 & 2020

-Unexpired Government issued identification

-2019 & 2020 Schedule C for Sole Proprietors

-2019 and 2020 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

-Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan

-Documentation showing the sum of all retirement plan funding that was paid by the company owner(s). (not including deductions from employee’s paycheck)

·       Include all employees and owners

·       Include 401K plans, Simple IRA etc.

Here are the general eligibility requirements:

• You have not previously received a PPP loan.
• You must have 500 or fewer employees
• A wide variety of businesses are eligible for the program. Both for-profit and certain non-profit small businesses are eligible. In addition, sole proprietorships, independent contractors, tribal businesses, and small agricultural co-ops can obtain PPP loans

Please note that you are not required to demonstrate a reduction in revenue to apply for your first PPP loan

• Employ no more than 300 employees;
• Have used the full amount of your first PPP loan
• Demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter. Applicable timelines are provided for businesses that were not in operation in Q1, Q2, Q3, and Q4 of 2019. Applications submitted on or after January 1, 2021 are eligible to use the gross receipts from the fourth quarter of 2020.
• Eligible businesses should be, non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives.

Businesses may receive a loan amount of up to 2.5x your average monthly payroll costs in the one year prior to the loan or the calendar year.

• New entities may receive loans of up to 2.5x average monthly payroll costs
• Entities in industries assigned to NAICS code 72 (Accommodation and Food Services) may receive loans of up to 3.5x average monthly payroll costs
• Fees are waived for both borrowers and lenders to encourage participation

Businesses borrowing in the second round of PPP would be eligible for loan forgiveness equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. The 60/40 cost allocation between payroll and non-payroll costs in order to receive full forgiveness will continue to apply.

Learn About Additional Eligible Expenses:

The Act makes the following expenses allowable and forgivable uses for PPP funds:

• Covered operations: Payment for any software, cloud computing, and other human resources and accounting needs.
• Covered property damage: Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
• Covered supplier: Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that is essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
• Covered worker protection expenditure: Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency.

In addition, the new legislation provides a smoother loan forgiveness process for those businesses that already have PPP loans. The second round of the Paycheck Protection Program will work similarly to the first round in providing funds for payroll and applicable overhead for small businesses. New PPP funding allows small business owners to apply for a loan regardless of whether they received funds from the first round of PPP or not. If you were unable to receive funding from the first round, you can apply for round two as a new applicant.