I Spent All Morning Making a Paycheck Protection Round 2 Application Walkthrough

[man_in_pain]

The new PPP second draw application is now available on the SBA's website.

Because I have a lot of experience with this program and it launches this coming week I decided to go ahead and make a walkthrough of the process.

Here's the SBA PPP Second Draw Borrower Application: https://www.sba.gov/document/sba-form-2483-sd-ppp-second-draw-borrower-application-form

Here's my step by step walkthrough:

Documents You'll Need For PPP 2:

1. Completed PPP Application Form

Include your contact name and email address.

List the names of all owners (over 20%).

Indicate your Business Type (Independent Contractors and Sole Proprietors have slightly different document requirements).

1. Average monthly payroll costs

Includes wages, commissions, tips, vacation, leave, and health benefits not in excess of $100,000 per employee. (also applies for self employed via earnings)

1. Proof of payroll or self income

You’ll need one of these documents:

IRS form 940 for 2019

IRS form 941 all quarters 2019

IRS form 944 for 2019

Payroll processor records

*If you are a partnership without employees you’ll need a 2019 schedule K. If you show no profit on line 14a you unfortunately do not qualify for a PPP loan

*If you’re self employed as a sole prop or contractor you will need a 2019 1040 schedule C. You will need to show profit on line 31

1. Proof of ownership.

Each owners name and SSN

1 other document for proof of ownership (this could be articles or incorporation or a 1040 schedule C or W9 form)

1. Government ID for all owners of more than 20%

1. Email addresses for all owners over 20%

1. Banking information for your business

1. Certificate of good standing from your secretary of state. (This does not apply for contractors or sole props)

I hope this helps! Let's make sure the funding isn't swallowed up by big companies this time around.

 

[towerwatchman]

@man_in_pain Awesome. Thanks. Just to confirm, we have to show a 25% reduction in revenue for one quarter from 2020?

 

[man_in_pain]

@towerwatchman Yes, compared to the same quarter in 2019

 

[towerwatchman]

@man_in_pain Thanks!

 

[mariahhgrim]

@towerwatchman Does it matter which quarter? Last quarter of 2020 I actually did better than 2019. Other quarters not so much.

 

[towerwatchman]

@mariahhgrim I don’t believe so. I’m pretty sure I remember it can be any one quarter, just has to be the same quarter from 2019/2020. So if your Q1 from 2019 and 2020 show a decrease by 25%, you should be good. Again, I’m not 100%, just based on a quick read.

 

[xxxxxseeker]

@man_in_pain Will this also be forgiven?

 

[robbinson]

@man_in_pain Not even american but this is great content.

Awesome work! Thanks!

 

[mombright]

@man_in_pain Dude this is awesome, I will use this to help my mom apply again for her small business

 

[roryam]

@man_in_pain I've enjoyed your series on PPP even before reading this! Thank you for the posts!