Good news for small businesses still reeling from the pandemic. The Paycheck Protection Program has been reopened, effective December 22, 2020. PPP loans, including a new second draw PPP loan, will be open for applications until May 31, 2021—or until PPP funds are exhausted. Fundbox is no longer accepting PPP applications, however, the SBA can help you find a PPP lender.
Applying for a PPP Loan
Next, gather the correct documentation for the application. Here is a list of the required PPP application documents:
- Basic information about your business and how to contact you
- Average monthly payroll costs
- Details of full-time employees and their payroll costs
- Applicable Tax Forms (for 2019 and Q1 2020, if available)
- Proof of mortgage or rent, mortgage interest, and utility expenses
- Articles of Incorporation / Organization
- Applicable forms to verify all ownership over 20%
- 8. Each owner’s TIN, EIN, or SSN and copies of a IDs for all 20%+ owners
- 9. Email addresses for all 20%+ owners of the business
- Proof of Active and Good Standing status of the business
- The completed SBA PPP application form
- Electronic funds transfer information
How to Learn More About the PPP Application
For more details on how to complete the PPP loan application and how to find the required documents, please see our complete PPP Checklist. For a description of the loan terms for the PPP, the SBA provides a summary here.
Fintech Companies Joining the Process
The SBA has been slow to include fintech companies as approved lenders, which was not helpful to smaller businesses, especially as some major banks have been accused of favoring their larger clients. Once the SBA finally gave a few fintech companies approval, the first round of funding ran out. However, now that additional PPP funding has been approved, it’s essential to get started now. The SBA can help you find a lender.
Once the lender approves your application, it gets sent to the SBA for approval and then it’s time to cross your fingers and hope you get approved before the next round of funding is exhausted. If you are lucky enough to get approved, you will get notification (usually by email) to sign final agreements and then payment comes in about five to seven days.
Disclaimer: This information has been aggregated from external sources. Fundbox and its affiliates do not provide financial, legal or accounting advice. This content has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial, legal or accounting advice. You should consult your own financial, legal or accounting advisors before engaging in any transaction.
