Corporations

Step 1

We recommend that you pull these documents together before you start the application.

If this is your 1st PPP Loan

In most cases you are allowed to use either 2019 or 2020 payroll costs to calculate your loan amount.

• Payroll summary report (or W2’s on all employees), which reflect all employee annual wages, taxes withheld, etc. If you include contributions for healthcare and/or retirement in your payroll costs, then your report must include those figures.
• If you include state unemployment insurance tax in your payroll costs, provide a copy of the form you submitted to your state.
• IRS Form 940 or 941 forms for all 4 Quarters, (the SBA does not allow more than $100,000 for any one employee)
• A payroll statement or 941 form from Q1 2020 to establish you paid employees at that time.

You will also need to provide:
• February 2020 bank statement, establishing you were in operation on February 15, 2020.
• Picture of front and back of your driver’s license

If this is your 2nd PPP Loan

To be eligible for a 2nd draw PPP loan, you must have experienced a 25% drop in Gross Revenue in either the entire year of 2020 or in any single quarter as compared to the corresponding quarter in 2019. If your loan is lower than $150,000 then you can wait to show evidence of this drop when you apply for forgiveness. However, you ARE required to provide the gross revenue figures that you are comparing along with the application. Since you have to come up with those numbers anyway, we recommend you go ahead and provide Profit and Loss statements, or some form of comparison sheet, to substantiate your eligibility with the application.

In most cases you are allowed to use either 2019 or 2020 payroll costs to calculate your loan amount.

• Payroll summary report (or W2’s on all employees), which reflect all employee annual wages, taxes withheld, etc. If you include contributions for healthcare and/or retirement in your payroll costs, then your report must include those figures.
• If you include state unemployment insurance tax in your payroll costs, provide a copy of the form you submitted to your state.
• IRS Form 940 or 941 forms for all 4 Quarters, (the SBA does not allow more than $100,000 for any one employee)
• A payroll statement or 941 form from Q1 2020 to establish you paid employees at that time.

You will also need to provide:
• February 2020 bank statement, establishing you were in operation on February 15, 2020.
• Picture of front and back of your driver’s license

Step 2

Your loan amount:
Compute 2019 payroll costs by adding the following:
•2020 or 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, up to $100,000 per employee, which can be computed using 2020 or 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter, Plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, Minus (i) any amounts paid to any individual employee in excess of $100,000, and (ii) any amounts paid to any employee whose principal place of residence is outside the United States;
• Plus 2020 or 2019 employer group health, life, disability, vision, and dental insurance contributions (portion of IRS Form 1120 line 24 or IRS Form 1120-S line 18 attributable to those contributions);
•Plus 2020 or 2019 employer retirement contributions (IRS Form 1120 line 23 or IRS Form 1120-S line 17); and
•Plus 2020 or 2019 state unemployment insurance tax (from state quarterly wage reporting forms).

After adding up all of those payroll costs, divide by 12 months to get an Average Monthly Payroll (seasonal employers have different options to maximize this number).

Then, multiple the Average Monthly Payroll by 2.5 months. That result is the loan amount you are eligible to apply for. Have your Average Monthly Payroll and Loan Amount these figures ready for the application.