fbpx
Subscribe
Menu

The $600B SBA COVID-19 BAG: 7 Important Documents To Have Ready To Apply For A Paycheck Protection Loan

The $600B SBA COVID-19 BAG: 7 Important Documents To Have Ready To Apply For A Paycheck Protection Loan

Written by Isheka N. Harrison

Apr 08, 2020

Subscribe
Paycheck Protection Program
There are several things business owners should have ready when they apply for the payment protection program to prevent further delay of their application being processed. In this April 3 2020 file photo, customers, some wearing face masks, line up outside a Wells Fargo branch in the Atwater Village neighborhood of Los Angeles during the coronavirus outbreak. The Federal Reserve is lifting its lending restrictions on Wells Fargo, Wednesday, April 8, to allow it to make more loans that fall under the $349 billion Paycheck Protection Program and the Fed’s upcoming own small business lending program. The Fed has had Wells under a tight leash due to the bank’s prior scandalous behavior, including the opening of millions of fake accounts (AP Photo/Damian Dovarganes, File)

The rollout of the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) has been riddled with challenges; and many small business owners have run into roadblocks getting their applications submitted and processed.

While the CARES Act committed $349 billion to help small businesses and their employees survive the COVID-19 coronavirus pandemic, big banks’ lack of preparation on launch day hindered many who sought to apply.

Some banks would only accept applications from certain existing customers, while others’ systems crashed, or they were non-responsive to inquiries after telling applicants they’d get back to them. Wells Fargo even reported it had run out of funding after users were initially told the bank wasn’t yet processing applications.

Listen to GHOGH with Jamarlin Martin | Episode 70: Jamarlin Martin

Jamarlin goes solo to discuss the COVID-19 crisis. He talks about the failed leadership of Trump, Andrew Cuomo, CDC Director Robert Redfield, Surgeon General Jerome Adams, and New York Mayor de Blasio.

During a Zoom web conference, Joseph Amato, the SBA’s district director in Nevada, criticized banks for their lack of empathy.

“So what they are saying is ‘I don’t give … a hoot about the small businesses … what I care about is whether or not I have enough paperwork. It’s just crazy,” Amato said. “Some of the big banks … that had no problem taking billions of dollars of free money as bailout in 2008 are now the biggest banks that are resistant to helping small businesses.” 

With so many issues facing small business owners attempting to take advantage of PPP, there are some things they can do on their own to increase the probability of getting money faster once lending institutions work out the kinks.

Here are several things business owners should have ready when they apply for PPP:

1. Average Monthly Payroll Calculation for Last 6 Months

2. Average Health/Benefits Cost for Last 6 Months

3. Last Year of Tax Return (2019 Preferred, 2018 Acceptable)

4. Printout That Shows Summary of Wages from Payroll Processor

5. Average Monthly Rent and Utility Costs for Last 6 Months

7. Business Financial Statements for 2019 If Available

Amid the unprecedented demand, U.S. Treasury Secretary Steven Mnuchin asked Congress for an additional $250 billion Tuesday, as fears mounted that the program would run out of money before it could help those who need it most.

At time of publication, Congress was debating whether or not to pass an interim bill to meet Mnuchin’s request.

✖