On March 31, 2020, the U.S. Small Business Administration (SBA) released the Paycheck Protection Program Application Form for use with the SBA Paycheck Protection Program (PPP) loans. Applications for PPP loans may be submitted to an existing SBA lender as early as April 3, 2020. Existing SBA-certified lenders have authority to approve and make PPP loans. The PPP Loan Program is available through June 30, 2020.
Applicants will need the following information to complete the form:
- Business Legal Name
- Primary Address
- Tax Identification Number/Social Security Number
- Phone Number
- Email Address
- Average Monthly Payroll Amount
- Number of Employees
To calculate the Average Monthly Payroll Amount, applicants should use “the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee.”
Applicants also need to list all owners of 20% or more of the business, including the owner’s (i) name, (ii) title, (iii) ownership percentage, (iv) tax identification number or social security number, and (v) address. All applicants are required to answer questions 1-4 of the application. Questions 5-7 of the application are to be answered by all applicants who are individuals and 20% or greater owners of the business.
Finally, the application contains a number of certifications in support of the applicant’s request for a PPP loan, which must be initialed by the applicant, as well as each owner of 20% or greater ownership interests of the business. One such certification provides that “[t]he funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.” See page two of the application.
Applicants are encouraged to immediately compile the following documents, which will be reviewed by an SBA lender as part of its credit underwriting:
- Appropriate tax returns of the business;
- Documents reflecting the number of employees;
- Documents showing payroll costs for the next eight weeks;
- Documents showing mortgage interest payments for the next eight weeks;
- Documents showing rent payments for the next eight weeks; and
- Documents showing utilities for the next eight weeks.
Notably, submission of a PPP loan application does not automatically assure the applicant’s eligibility for a PPP loan.
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