Don’t wait; contact your bank this morning! There are some things that you should be doing right now if you plan to apply for a Paycheck Protection Program loan. Even if you are not completely sure you are eligible, you should -
- Go ahead and contact your bank and get in their “queue”. Most banks appear to be working first and foremost with their current customers, and in the order that they are contacted. Some have online forms you can send in, and some you will have to call.
- If you pay salaries, either to employees or to yourself as an employee of an S-Corporation, start pulling together payroll reports that you will need to submit as part of the loan process. Every bank may ask for slightly different variations of this information, but at a minimum make sure you have your form 940 and forms 941 from 2019 ready to go.
- Another important reminder – if your business is an S-Corporation, and you only pay yourself through draws and do not pay yourself any salary through payroll, you will not be eligible for this loan. This is based on information we have now, this could change, but for now it does not look like distributions from as S-Corporation to the owner will be considered eligible to be counted for this program.
PPA is hosting an informational webinar at 3 p.m. today on this program BUT you should go ahead and reach out to your bank this morning. Some banks are already taking applications, and some won’t start taking them until next week. Find out how your bank is dealing with this process.
- Here is a link to PPA’s information page on the Payment Protection Program loan
- There is also a sample application on PPA’s page from the SBA website that is being used by banks which will give you an idea what they will be asking for.
- Iif you do have a local accountant that you work with, you should already be talking with them about all this and be taking advantage of their expertise and knowledge of these government programs.
We look forward to seeing you at the webinar later today.