Five Important Warnings As The Paycheck Protection Program Opens Back Up
April 23, 2020 / Brian Thompson, Contributor
After passing new stimulus legislation this week, Congress is set to add $310 billion to the Paycheck Protection Program (PPP). The second round of applications will officially open soon. And whether you’re waiting on an already submitted application or you’re itching to apply, here are five things to remember as you get ready for PPP to open back up.
1) Be prepared
While $310B seems like a lot of money (who am I kidding, it is a lot of money), we saw the last $349B run out within two weeks. And that’s without all of the banks starting on time and many of the FinTech companies not being allowed to participate. So, don’t sleep on this if you really need the money (as a lot of you do), especially if you are self-employed, an independent contractor or a freelancer who got a late start on applying.
You can prepare by determining which lender you’ll be applying to and what you’ll need to provide. Unfortunately requirements differ from lender to lender, but here are some of the most 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
