PLANNING AFTER SUBMITTING
Make a plan for the amount requested. Focus on provability – 75% must be used for qualifying payroll costs and 25% or less can be used for business expenses like rent and utilities.
RECEIVED PPP LOAN – DOCUMENT, DOCUMENT, DOCUMENT & FOLLOW THE RULES
- You may want to set up a separate bank account to keep a clean and neat paper trail – moving it to your payroll account or even writing yourself a weekly check if you are the sole prop (and have taken draws in the past).
- Rehire employees as after you receive the PPP loan, you only have until June 30, 2020, to restore your full-time employment and salary levels for any changes made between Feb. 15, 2020, and April 26, 2020.
- Loans can be used for a variety of expenses including:
- Operating expenses, such as payroll, rent, lease payments, utilities and mortgage interest obligations.
- Payroll costs that may include wages, salaries, retirement contributions, health care benefits, insurance premiums, covered leave and other expenses. 75% for loan forgiveness, plan for 80-90% to make sure you give yourself leeway.
Please note that it becomes a loan that is not forgiven if all i’s not dotted & t’s not crossed.
Reminder for those who haven’t applied yet.
Typical Documents that are needed for those with Lender Relationship:
- Ownership data: You’ll want documentation from all owners over 20% and affiliated businesses.
- Payroll tax filings for 2019: All 4 quarters of 2019 payroll tax filings at both the state and federal level.
- All employee W-2s for 2019.
Additional Documents that will most likely be needed if NO Lender Relationship:
- Legal business name, address and phone number
- Date business was first established
- Business tax identification or Social Security number
- Ownership type
- Number of owners
- Gross annual revenue
- Assertion that all applicants are a U.S. citizen or permanent residence
- Payroll tax filings
- Payroll Tax form 941
- Form 1099-Misc
- Income and expenses from a sole proprietorship