What information do I need for a PPP loan?

Asked by: Chesley Schultz Jr.  |  Last update: February 9, 2022
Score: 4.8/5 (41 votes)

Official PPP Loan Application Form
  1. Business name, DBA, business address, EIN/SSN, and contact information.
  2. Average monthly payroll (learn how to calculate your average monthly payroll yourself), loan request amount, number of employees, and loan purpose.

Do PPP loans need bank statements?

At a minimum, you'll need payroll documents and tax statements. Bank statements, receipts, purchase orders and canceled checks may also be required.

Can you pay yourself with PPP loan?

Over the course of those ten weeks, 10% of your PPP loan is going to transfer right back into your personal account. This way you can use the funds and show you've paid yourself over ten weeks or 2.5 months.

Can a self-employed person get a PPP loan?

To qualify for a PPP loan, self-employed individuals must meet the following criteria: ... You are an independent contractor, sole proprietor, or other qualifying business classification with self-employment income. In 2020, you filed a Schedule C or Form 1040. Your primary place of residence is the United States.

What documents are needed for PPP forgiveness self employed?

To do this you'll need your 2019 Form 1040 Schedule C, as well as a 2019 IRS Form 1099-MISC detailing non-employee compensation, invoices, bank statements, or a book of record that proves you are self-employed. When you apply for forgiveness, you'll provide that same 2019 Schedule C to your lender.

PPP Breakdown For FIRST Time Applicants | EVERYTHING YOU NEED TO KNOW

23 related questions found

What documents are needed for second PPP loan?

If you've already borrowed a PPP loan from the first round, you may be eligible for a second-draw loan.
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Documentation to gather for your PPP application
  • IRS Form 940.
  • IRS Form 941.
  • IRS Form 944.
  • IRS Form W-3.
  • IRS Form 1099 (if relevant)
  • IRS Form 1040, Schedule C (if relevant)

How do I show proof of payroll for PPP?

To prove payroll costs you'll need to provide:

Federal payroll tax filings (IRS Form 941) Income, payroll, and unemployment insurance filings from your state. Receipts for employer contributions to group benefit plans. Receipts for any retirement plan contributions.

What is considered gross receipts for PPP?

Gross receipts include all revenue in whatever form received or accrued (in accordance with the entity's accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances.

What are the steps to getting a PPP loan?

How to Complete Your PPP Loan Application
  1. Step 1: Access your PPP Application. ...
  2. Step 2: Add or Confirm Existing Business Information. ...
  3. Step 3: Add New Requirements for Business Information. ...
  4. Step 4: Enter or Confirm Ownership. ...
  5. Step 5: Enter or Confirm Additional Owner Info. ...
  6. Step 6: Upload or Confirm Documents.

What is the deadline for PPP loan forgiveness 2021?

If you got a Paycheck Protection Program loan during the first draw, your deadline for applying for forgiveness is August 30, 2021. The applications for forgiveness are made through your lender or through the PPP Loan Forgiveness Portal opened by the Small Business Administration.

Can you get a PPP loan with a 1099?

Independent contractors can submit a PPP loan application through their bank or a lending marketplace. ... 1099 employees are now eligible to apply for their own PPP loans through their banks or a loan marketplace.

How do self-employed fill out PPP?

For self-employed individuals with employees
  1. Find or complete your Form 1040, Schedule C.
  2. Locate your net profit on line 31. ...
  3. Add gross wages & tips for employees residing in the US using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c- column 1).
  4. Add pre-tax benefits to employees, such as health insurance.

What can I use my PPP loan for as a sole proprietor?

Forty percent or less of the loan can go towards other eligible expenses, including business mortgage interest payments, business rent or lease payments, business utility payments, covered operations expenditures, covered property damage costs, covered supplier costs and covered worker protection expenditures.

Can you get PPP loan without employees?

The PPP limits compensation to an annualized salary of $100,000. For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation share.

Who is not eligible for a PPP loan?

First Draw PPP Loan If You Have No Employees

(If you are using 2020 to calculate payroll costs and have not yet filed a 2020 return, fill it out and compute the value.) If this amount is over $100,000, reduce it to $100,000. If both your net profit and gross income are zero or less, you are not eligible for a PPP loan.

Do you need a business account for PPP loan?

This major bank is continuing to accept online PPP loan applications in anticipation of the SBA program getting more money. To apply, you must have a business checking or small business savings account with Capital One as of February 15, 2020.

Can sole proprietors get SBA loans?

SBA Loans. There are several different small business loans for sole proprietors backed by the Small Business Administration and offered by a variety of lending institutions. The most popular is the 7(a) program, which can be secured for up to $5 million, depending on your qualifications.

How do I report a PPP loan on my tax return?

The instructions for Form 1120S provide that the tax-exempt income from the forgiveness of PPP loans should be reported on Line 16b of Schedule K, Form 1120S and Schedule K-1 of Form 1120S.

Do I count myself as an employee for SBA loan?

You are an employee of your business, so you can use your loans to pay yourselves.

Can you go to jail for 20000 PPP loan?

Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.

How much PPP money is left as of today?

PPP Money – Nearly All Gone: Only $8 billion remains available. Source: CBS News, April 6, 2021.

What happens if you don't apply for PPP forgiveness?

If you don't apply for loan forgiveness within 10 months after the last day of your covered period, you'll be required to start making payments to your PPP lender at 1 percent interest, which started accruing when the loan was made.

Will Congress approve more money for PPP?

IMPORTANT UPDATE FOR 2021:

Congress approved an extension of the PPP loan program until June 30, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. ... In late December 2020, Congress passed a bill approving a re-funding of the PPP and EIDL programs under the CARES Act.

What can PPP loan be used for?

Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan. The second stimulus bill also introduced four new categories of expenses that are allowed.