Paycheck Protection Program
Do It Yourself Checklist
Let’s not sugar coat it. Things are hard right now. We are very sorry that you are in this position of need, and we hope that you are staying safe and healthy during these incredibly difficult times.
In an effort to help you apply for a PPP loan as quickly as possible, we’ve put together this complementary informational sheet and checklist for applying for a PPP loan yourself. We recommend going through your usual bank to apply for the PPP loan. However, we understand that many banks have been uncooperative and slow in responding and implementing these loan applications and programs.
To that end, we have found that the website Lendio.com seems to be a valuable alternative. Lendio is a marketplace which allows you to quickly complete the application, upload required documentation, and Lendio will match you with loan options from a network of more than 75 qualified and receptive lenders. The application process on Lendio is fairly simple and it should only take you 15 minutes after you collect the documentation needed. Once Congress re-funds the Paycheck Protection Program, you can access the Lendio PPP Application directly HERE.
Generally speaking, PPP loans are fixed at a 2-year term with 1.0% interest rate and payments are deferred for 6 months. You can qualify for PPP Loans if your business generally has fewer than 501 employees; you were in operation as of February 15, 2020; and, you are an independent contractor or sole proprietor, or your business has paid payroll costs for employees and/or independent contractors. Importantly, these loans can be fully or partially forgiven after 6–8 weeks, if you spend the money on qualified uses such as payroll, mortgage interest payments, rent payment, and utilities.
Please see the following checklist of considerations and documents that you will need in order to apply for a PPP loan through Lendio. Different lenders may have different requirements, and this list is non-exhaustive and subject to change. However, it should give you a decent understanding of the general types of documentation that you will need to submit.
Self-Employed and Independent Contractors
Separate bank account for PPP funds. You will need to show the SBA and the Lender a clear delineation of funds, and where PPP funds are going. The easiest way of doing so is likely going to involve physically separating the PPP funds from other money.
Scans of your Drivers License or other government-issued ID (FRONT and BACK).
IRS Form 1099-MISC (if you are an Independent Contractor).
2019 IRS Form 2040 Schedule C (if you are Self Employed).
2019 IRS Form 1099-MISC for each self-employed owner.
If you have employees:
All 2019 IRS Forms 941 or 944.
Payroll register for the full 2019 calendar year.
Payroll register for all available months in 2020.
Multi-owner Businesses
Separate bank account for PPP funds. You will need to show the SBA and the Lender a clear delineation of funds, and where PPP funds are going. The easiest way of doing so is likely going to involve physically separating the PPP funds from other money.
Scans of your Drivers License or other government-issued ID (FRONT and BACK) for each owner with 20% or greater ownership share in the company.
All 2019 IRS Forms 941 or 944.
Payroll register for the full 2019 calendar year.
Payroll register for all available months in 2020.
VERY IMPORTANT LOAN FORGIVENESS INFORMATION:
Please keep in mind that, if approved, you must use no fewer than 75% of the loan amount on payroll expenses in order to qualify for loan forgiveness.
The loan forgiveness process, while still procedurally undefined, must be initiated 6–8 weeks after you receive the PPP loan money.
It’s important to remember that this is something that you must actively seek – loan forgiveness is not automatic under the PPP.
We are available to counsel you with respect to making sure that you operate and use the PPP funds in ways that will qualify for loan forgiveness as well as navigating the loan forgiveness process itself.
Please contact our licensed attorneys at hello@inventorshelp.com if you are confused about how you can use the PPP funds once you receive them and/or need help actively requesting loan forgiveness, and we would be happy to offer such services under our standard Professional Services Agreement at the appropriate time.
Similarly, we are happy to offer assistance in filing for other loans under the SBA’s Economic Injury Disaster Loan program.
In the meantime, transmission and receipt of the information contained in this letter, in whole or in part, or communication with Gugliotta & Gugliotta, LPA via the Internet or e-mail through this website does not constitute or create a lawyer-client relationship between us and you. You should not send us any confidential information in response to this letter. Such responses also will not act to create an attorney-client relationship between us and you. As such, anything that you may disclose to us will not be privileged or confidential, unless we have agreed to act as your legal counsel and you have executed a written engagement agreement with Gugliotta & Gugliotta, LPA. Due to the ever-evolving nature and landscape of this unprecedented loan program, the material contained in this letter may not necessarily reflect the most current legal developments. To that end, the content herein is subject to revision. Gugliotta & Gugliotta, LPA disclaims all liability in respect to your actions and/or omissions based on this letter’s contents, to the fullest extent permitted by law. Do not act (nor fail to act) in reliance of this information without seeking professional legal counsel.
We are not affiliated in any way with Lendio, nor do we receive commission based on referrals to Lendio. We are recommending Lendio tentatively as an alternative to working with your pre-existing bank, but strongly encourage you to research Lendio and its track record and reliability prior to using Lendio to complete and file a PPP application.
Stay well, safe, healthy, and, most importantly, happy.
Nathan Gugliotta, Esq.
Gugliotta & Gugliotta, LPA
P.O. Box 506 | Richfield, OH 44286
Office: (330) 253 - 2225
Direct: (330) 331 - 9455
nathan@inventorshelp.com