Second Wave of Paycheck Protection Program Funding: How to Be Prepared
A second round of federal funding in Paycheck Protection Programs (PPP) is set to add another $310 billion into the program. If you missed out on the first round, do not wait to apply or reapply for this second round, the money goes quickly.
While $310 billion may seem like a lot of money, the last $349 billion ran out in two weeks. Again, don’t sleep on this if you really need the money, especially if you are self-employed, an independent contractor or a freelancer who got a late start on applying for the first round of funding.
One of the best ways to prepare is by determining which lender you’ll be applying to and what you’ll need to provide. Unfortunately, requirements differ from lender to lender, but there are some of common items lenders require.
For companies with employees:
Tax Form 940 or 943 (Agriculture) from 2019, if filed OR
2019 Payroll processor records including gross salaries and wages similar to those produced by acceptable payroll providers such as ADP, Paycom, SAP, Ceridian, Intuit INTU/Quickbooks, Paylocity, Workday WDAY, Paychex PAYX
2020 Tax form 941 or Payroll processor records for the period between Feb 14-29, 2020
For sole proprietors or self-employed without employees
1040 Schedule C, if filed for 2019 OR
Draft 1040 Schedule C for 2019 if not filed
Income and Expenses (Profit & Loss Statement)
For independent contractors:
Form 1099-MISC for 2019, for services rendered as an independent contractor