Attention Small Business Owners!
$284 billion was allocated for another round of the Paycheck Protection Program (PPP) a forgivable business loan offered through the federal government’s Small Business Administration (SBA) that helps businesses keep their workforce employed during the Coronavirus (Covid-19) crisis.
The first round of funding ran out fast, and many businesses who were not prepared ahead of time were unable to successfully apply for funding. The New York City Department of Small Business Services recommends preparing so you are ready to apply as quickly as possible.
Please note: requirements may change, but below are a few ways to start preparing.
Prepare your documents
Each lender may have different requirements, but you can begin collecting some commonly required documents, including:
– Copy of Photo ID for all owners who own 20% of business or more
– 2019 and 2020 Profit and Loss Statements to show revenue loss during 2020
– 2019 Business Tax Returns
– For partnerships – include IRS Form 1065 and Schedule K-1
– For sole proprietors – include IRS Form 1040 Schedule C
– Articles of Incorporation / Business Organizational Documents
– Payroll Reports with a list of gross wages, paid time off, and taxes assessed for all employees for all 12 months of 2020
– 2020 Employer IRS Documents (including one of the following for all 4 quarters of 2020):
– Form 941: Employer’s Quarterly Federal Tax Return
– Form 944: Employer’s Annual Federal Tax Return (for smallest employers)
– Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return
– Form W-3: Transmittal of Wage and Tax Statements
– Documentation to support Health Insurance and Retirement expenses incurred as a part of payroll expenses (for example: a statement from insurance or retirement company)
Sign Up for Notifications
Be sure to sign up to receive updates from your lender and from SBS to stay in the loop on when and how you can apply.
Determine How Much You Can Apply For
You can apply for up to $2 million or 2.5 times your monthly payroll, whichever is less – if you are a restaurant or a hotel, you can apply for 3.5 times your monthly payroll up to $2 million.
Loans will be forgiven (meaning you do not need to pay them back) if you use them for eligible expenses, including 60% for payroll expenses and 40% for other eligible operating expenses.
Even if you already received a PPP loan you still may be eligible for a second award.
To be eligible, you must meet the following criteria:
– Show proof of 25% economic loss in at least one quarter during 2020
– Have 300 employees or less
– Have operated your business since on or before February 15, 2020
The New York City Department of Small Business Services recommends getting your business paperwork in order as soon as possible so you are ready to apply.
Use the link below to ask a question and sign up for updates from the
New York City Department of Small Business Services