Skip to content

After Submitting PPP, Key Dates, Planning and Documentation is Key

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.

LOAN APPLICATIONS:

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

Leave a Reply

Your email address will not be published.