SE Dallas Chamber of Commerce

PPP Loan

Apr 27, 2020 - Events | Projects | Business | Portfolio | News & Updates

HOW TO COMPLETE YOUR PPP APPLICATION

We͛ve prepared this guideto make it easier for you to navigate your way through the complex process of the PPP application and to allow us to process your PPP application as quickly as possible. We͛ve also included an Application Checklist(attached) that you shoulduse to ensure you submit a complete application and avoid delays in processing your PPP loan request.Step 1: CalculateYour PPP Loan Amount Before you begin filling out anything else, yourbest starting point is to calculate youreligible loan amount.This can becomplicated, so here are our best tips on how to make this calculation easier:xIf you use an outside payroll service, contact them to see if they can assist you. Many payroll service vendors are offering to prepare a report that to help you determine your maximum loan amount.Check with your payroll service vendor to see if they offer this service. If so, you can provide your payroll service vendor͛s reportto support your PPP loan request.If your PPP loan request is based solely on your payroll service vendor͛s report, this is the onlydocument you will need to provide to justify your calculation.xIf you have an accountant, they can help you calculateyour maximum loan amount. Your accountantknowsyour business and can advise you on your loan amount calculation.xGather your documentationʹwe must collect supporting documentation for the amountsincludedin your calculation. While the documents listed below are generally sufficient, if your calculation includes amounts not listedon these forms, such as employer-paid health insurance, you will need to provide additional documentationfor those amounts.And, to speed processing, upload a worksheet with your documentation, showing how you calculated your PPP amount.oForm 941 quarterly payroll tax filings, oroPayroll service processingrecords, or oPayroll service processor PPP calculation, oroFor independent contractors applying for a PPP loan, Form 1099 (Tip: independent contractorsmust apply directly for a PPP loan; entities that hire independent contractors may notinclude 1099 payments in their PPP amount), oroFor sole proprietors, Schedule C from your 2019 tax return.If you do not have any of the above documentation,see the Additional Guidancebelow for other potential documentation options.Step 2: Proceed to the Online ApplicationTO EXPEDITE OUR PROCESSING, PLEASE COMPLETE EVERY FIELD IN YOUR ONLINE APPLICATION.Only fields with an asterisk are required, but completing all fields significantly improves our processing time for your application.Below are additional tips for completing your online application to avoid delays in our processing of your PPP loan request:xInitial Information:oChrome orInternet Explorer work best for completing this application. Issues have been reported with some other systems.oYou don͛t have to complete your application in one session͘oThe application will ask whether you already have an existing funded loan with us. Please reply NOregardless of whether you have an existing Self-Help loan.xGeneral Information Tab:Fill in contact information for the person we can work with on issues with application.This does nothave to be the owner/key executive͘ If you͛re preparing this material on behalf of the applicant, this is where you canlet us know who you are and how tocontact you.xLoan Details:oSBA Form 2483(Paycheck Protection Program Borrower ApplicationForm): SBA FORM 2483 MUST BE COMPLETED IN ITS ENTIRETY. DO NOT SKIP ANY FIELDS. BE SURE TOINITIAL QUESTIONS 5 & 6 AND ALL CERTIFICATIONS, SIGN AND DATE. If you complete SBA Form 2483 with DocuSign or Adobe, you can initial and sign electronically; otherwise you will need to initial and sign by hand.oTotal Loan Amount: If your loan amount calculation includes cents, round downto the nearest dollar.If your loan amount exceeds2.5x your average monthly payroll calculationby even 1 cent, SBA will reject your application. xJob Details & Tax Returns: oCurrent Number of Employees:xTo qualify for loan forgiveness, you should calculate employees as Full-Time Equivalent (FTE) Employees. FTEs are based on a 40-hour work week. Please count each 40 hour/week employee as 1 FTE and each part-time employee as a fraction of 1 FTE. For example, an employee who works 20 hours/week equals ½ FTE.ථxOwners of your organization areconsidered employees in this calculation, so include each one.oUpload your calculation worksheet,documentation supporting your calculations, and the attached Application Checklistwhere indicatedon this tab. Remember, you must include all documents used to justify your loan amount calculation.xDemographics: Completion of this tab allows Self-Help to learn more about the communities we serve. Self-Help does not discriminate in its employment or activities, and we actively partner with others to end discrimination on the basis of race, color, class, age, religion, disability that can be accommodated, nationality, family status orsexual orientation.

xOwners:An Owner tab must be completed for all applicants. oAllapplicants: each owner tab should include all fields, including (i) SSN/TIN, (ii) ownership percentage, and ;iiiͿ a color copy of the individual͛s driver͛s license (front & back), passport, or other official government-issued photo identification.oFor-profits: enter each 20%+ owner.oNon-profits:enter the Officer of the nonprofit who will sign the loan documents on behalf of your entity. For non-profits, ownership percentage can be entered as 0%.oCo-ops: enter the person who will sign the loan documents on behalf of your entity. xFinish Application:oRemember in the comments boxto enter the codefor your organizationthat was provided in your PPPapplication linkemail.Failure to include your code will delay processing of your application.oOnce you hit SubmitMy Application, you will nolongerbe able to edit your application, so please review and confirm all items are completed and all documents uploaded, before you hit SubmitMy Application.oComplete the attached Checklist and upload it along with your supporting documentsso wecan make sure you have completed all of the required parts of the applicationand process your request more quickly.Additional GuidanceWhat exactly canand can’tyou include in the PPP monthly payroll?Here is aquick summary of what can and can͛t go in the PPP monthly payroll calculations, according to ADPPayroll ServicesGuidance:Applicantscaninclude:xEmployee gross pay (often pulled from line 2 on Form 941)xAll employer state and local taxes paid on employee gross pay, such as state unemployment insurance and employer-paid state disability insurance (in applicable states)xEmployer health care benefits, including insurance premiumsxRetirement benefits, including defined-benefit or defined-contribution retirement plans and employer 401(k) contributionsxFor Sole Proprietors: can also includenet incomeline of their Sch. C(assuming they attach 2019 Schedule C).Applicantscan͛tinclude:xEmployeegrosspay that exceeds $100,000xThe employer portion of federal employment taxes (i.e., Social Security and Medicare)xPayments to independent contractors(note, however,independent contractors themselves can apply for a PPP loan based on their 1099 income)xWorkers compensation premiumsxFederal unemployment taxxCompensation of employees whose principal place of residence is outside of the U.SxQualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response ActWhat are the documents needed to justify your loan?We must collect some official orthird-partydocumentation to justify the monthlypayroll you are claiming as the basis for your loan.According to SBA/Treasury guidance, you must submit such documentation as is necessary to establish eligibility such as:xpayroll processor recordsxpayroll tax filings(IRS Form 941 ʹQuarterly Federal Tax Return)xForm 1099 MISC (if application is from an independent contractor)xincome and expenses (2019 Schedule C) from a sole proprietorshipIf you do not have the abovedocuments, you may include:xIRS Form 940, Annual Federal Unemployment Tax ReturnxSchedule SE to IRS Form 1040x2019 tax returns If you do not have any such documentation, you must provide other supporting documentation, such as bank statements, to demonstrate qualifying payroll amount. We musthave some third-party or official documentationto support your calculations. Internally prepared P&L documents, by themselves, will not be sufficient.What time period can you use to calculate their “average monthly payroll”:Most Businesses: You may use either (i) January 2019 -December2019or (ii) the most recent 12-monthperiod as the basis for their payroll calculations.New Businesses: For businesses that started during 2019 (or prior to February 15, 2020),but do not have a full 12 months of payroll records, you should use the average monthly payroll costs for the period January 1, 2020 through February 29, 2020. In other words, if your business is too new to have a full 12 months payroll, you will usethe average monthly payroll for January and February 2020.Seasonal Businesses: If your business is seasonal, the regulation allows you to base your calculation on average monthly payroll for the period between (i) February 15, 2019 orMarch 1, 2019 and (ii) June 30, 2019.(Unfortunately the current version of the regulation does not provide other periods for businesses that may have different peak seasons.)What payroll can I claim if I’m a sole proprietor?You may claim your net profit as your own payroll, as well as any wages or benefits you͛ve paid to yourself or your employees.The biggest problem you might run into is documentation. The best documentation for you will bea completed Schedule C from your 2019 tax return. As a result, we strongly encourage you to complete your personal taxes and submit the Schedule C with your application.You may include K-1 earnings as salary for each partner, up to $100,000.U.S. annual employee salaries, including wages, commissions, tips, and state and local payroll taxes. Each employee is capped at $100,000 annually.S-corpYour salary as reported through a payroll service (max $100,000). Your salarymay only be considered if it was paid through payroll while remitting payroll tax.U.S. annual employee salaries, including wages, commissions, tips, and state and local payroll taxes. Each employee is capped at $100,000 annually.C-corpYour salary as reported through a payroll service (max $100,000). As a C corp, your salary may only be considered if it was paid through payroll while remitting payroll tax.U.S. annual employee salaries, including wages, commissions, tips, and state and local payroll taxes. Each employee is capped at $100,000 annually.Source: https://bench.co/blog/operations/calculate-ppp-loan-amount/

PPP Loan Application with Self-Help Checklist - FOR SELF-HELP INTERNAL USE ONLY

	Borrower Name:
	Processor:
	Date:
	Processing Status:	Please Complete Checklist Below


	DESCRIPTION		YES/NO
COMPLETION OF SBA PPP APPLICATION FORM (FORM 2483)				Picture
1.	Did borrower check an Entity Type box at the top left of the SBA PPP Application form?			Here
2.	Did borrower fill in the Borrower TIN (EIN, SSN) at top of the SBA PPP Application form?			Here
3.	Is the Average Monthly Payroll, Loan Request, and Number of Employees filled in?			Here
4.	Did the borrower answer all of the questions (1-8) with Yes or No?			Here
5.	Did borrower answer questions 1-2 & 5-6, "No"?			Here
6.	Did the borrower answer question 7, "Yes"?			Here
7.	If borrower answered "Yes" to questions 3 or 4, did they uploaded required Addendum?			Here
8.	Did borrower initial next to answers to question 5 & question 6?			Here
9.	Did borrower initial by all of the certifications on page 2?			Here
10.	Did borrower sign and date the form on page 2? Either in ink or with a an eSignature? (typed signature is not sufficient)			Here
UPLOADED ALL REQUIRED DOCUMENTS & CONFIRM PAYROLL/LOAN AMOUNT
11.	Has borrower uploaded the completed SBA PPP Application (Form 2483)?
12.	Has borrower uploaded a color copy of the authorized signer's driver's license?
13.	Have average monthly payroll and loan amount been confirmed? (Find the calculator that the applicant filled out on subsequent tabs or use the payroll processing document they might have provided; Fill in yellow figure below to confirm amounts.)
14.	Has borrower uploaded all tax filings and/or third-party documents needed to confirm the above?

CONFIRMING PAYROLL & LOAN AMOUNT

AMOUNT BORROWER ENTERED BY "AVERAGE MONTHLY PAYROLL" IN THE APPLICATION			$-
SBA DISASTER LOAN AMOUNT REFINANCED, IF APPLICABLE:			$-
AMOUNT BORROWER ENTERED BY "LOAN AMOUNT" IN THE APPLICATION			$-

"AVERAGE MONTHLY PAYROLL" CALCULATED BY PROCESSOR			$-
SBA DISASTER LOAN AMOUNT REFINANCED, IF APPLICABLE:			$-
"LOAN AMOUNT" AS CALCULATED BY PROCESSOR			$-

DIFFERENCE IN AVERAGE MONTHLY PAYROLL			0%
DIFFERENCE IN LOAN AMOUNT:			0%

PPP Loan Application with Self-Help Checklist

	Business Name:
	Submission Status:	Please Complete Checklist Below
	NAICS Code:

Instructions
• Please complete yellow highlighted cells
• Please complete this checklist thoroughly and accurately or processing of your loan may be delayed

	DESCRIPTION		YES/NO
GATHERING OF DOCUMENTATION & CALCULATION OF PAYROLL/LOAN AMOUNT REQUEST
1.	Gather all documentation required to calculate average monthly payroll costs (examples of acceptable documentation and eligible costs can be found on calculator templates; find the appropriate calculator for your organization using the links on the "Calculator Selection tab")
2.	Select a calculator on the next tab to calculate your average monthly payroll costs and therefore loan amount request. If you upload a third-party payroll processor report specifically prepared for PPP, you do not need to use the calculator
COMPLETION OF SBA PPP APPLICATION FORM (FORM 2483)				Picture
3.	Did you check an Entity Type box at the top left of the SBA PPP Application form?			Here
4.	Did you fill in the Borrower TIN (EIN, SSN) at top of the SBA PPP Application form?			Here
5.	Under Applicant Ownership, is this section filled in with SSN legible? (Non-profits should input the authorized signer's information and 0% Ownership)			Here
6.	Is the Average Monthly Payroll, Loan Request, and Number of Employees filled in?			Here
7.	Does the Average Monthly Payroll match the figure you calculated using one of the calculators and acceptable documentation that you gathered?			na
8.	Have you answered all of the questions (1-8) with Yes or No?			Here
9.	For question 7, make sure that any employees not with primary residence in the United States are not included in the payroll calculation. Have you made sure and therefore answered this question "Yes"?			Here
10.	If you answered "Yes" to questions 3 or 4, have you uploaded required Addendum?			Here
11.	Have you initialed by your answers to question 5 & question 6?			Here
12.	Have you initialed by all of the certifications on page 2?			Here
13.	Have you signed and dated the form on page 2? Either in ink or with a an eSignature? (typed signature is not sufficient)			Here
UPLOAD ALL REQUIRED DOCUMENTS
14.	Have you uploaded the completed SBA PPP Application (Form 2483)?
15.	Have you uploaded a color copy of the authorized signer's identifcation (driver's license, passport, US state-issued ID, Military ID, Matricula Consular)?
16.	Have you uploaded all tax filings and/or third-party documents that will validate any payroll costs that you include in your calculations and gathered in Step 1?
17.	Have you or will you upload this checklist and calculator?

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