SBA Paycheck Protection Program

Our portal is now OPEN, so yes, we will now be taking PPP loan first draw AND second draw applications.

Please begin the submission process by clicking the button below:

Submit Your Application

Paycheck Protection Program (PPP) Loans

Below are the portions of the law that relate to small businesses. Our team has spent significant time over the last few weeks working on this legislation and what it will mean to the small business community.

Here is what we know, so far:

  • Small businesses with 300 or fewer employees that have sustained a 25 percent (or more) revenue loss in any quarter of 2020 are eligible to apply for a second draw PPP loan. $284.45B is available for this.
  • The maximum second draw PPP loan will be $2MM or 2.5x average monthly payroll like with the initial, first draw PPP loans (3.5x if a business is in NAICS Code 72).
  • For second draw PPP loan applicants seeking up to $150k, there will be a simple certification process attesting to the qualifying, quarterly revenue reductions, thus expediting these submissions.
  • It provides full tax deductibility of business expenses on forgiven PPP loans (on both first and second draw loans).
  • It expands forgivable expenses (beyond the original eligibility) to include supplier costs (such as accounting and IT expenses) and investments in software, facility modifications, and personal protective equipment.
  • The loan forgiveness process for first draw and second draw PPP loans less than $150K will be simplified to a one-page certification (business owners will still need to provide the number of employees retained, amount spent on payroll, and total loan amount).

Fountainhead PPP Loans Checklist

PPP Round One

For all 1st Draw PPP Loan Requests

For businesses that file as a Sole Proprietor
  • Entity Formation Documents/Articles of Incorporation (Only if the applicant’s business is an LLC and files as a Sole Prop)
  • Driver’s License (or passport)
  • 2019 or 2020 IRS Form 1040 Schedule C
  • 2019 or 2020 IRS Form 1099-MISC detailing nonemployee compensation received (box 7), IRS Form 1099-K, invoice, or book of record *This will correlate to the Schedule C*
  • 2020 invoice, bank statement, or book of record establishing you were in operation on February 15, 2020.
  • Wire Info Document (download sample is on our portal)

 

**If a Sole Proprietor has employees, they ALSO need to provide:

  • Payroll summary report (or W2’s on all employees) for the corresponding year, which reflect all employee annual wages, taxes withheld, etc.
  • 2019 or 2020 IRS Form 940 or 941 for all 4 Quarters (whichever year the borrower chooses to base their loan on)
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date
For Self-employed Farmers or Ranchers

For Self-employed Farmers or Ranchers:

  • The documentation requirements are the same as for Schedule C filers except:
  • 2019 or 2020 IRS Form 1040 Schedule 1 and Schedule F must be included with the loan application in place of IRS Form 1040 Schedule C.
  • Additionally, Farmers and Ranchers with employees, IRS Form 943 should be provided in addition to, or in place of, IRS Form 941, as applicable.

*** The calculation for self-employed farmers and ranchers with employees is the same as for Schedule C filers that have employees with several exceptions:

  1. First, in place of Schedule C line 31 (net profit), the difference between Schedule F line 9 (gross income) and the sum of Schedule F lines 15, 22, and 23 (for employee payroll) should be used.
  2. Second, employer contributions for employee group health, life, disability, vision and dental insurance (portion of Schedule F line 15 attributable to those contributions) and employer contributions for employee retirement contributions (Schedule F line 23) should be used in place of those respective lines on Schedule C.
For Businesses that File as a Partnership
  • Entity Formation Documents/Articles of Incorporation
  • Driver’s License (or passport) on all owners of 20% or more of the borrowing entity
  • The partnership’s 2019 or 2020 IRS Form 1065 (including K-1s) Business Tax Return
  • If the partnership has no employees, an invoice, bank statement, or book of record establishing the partnership was in operation on February 15, 2020 must instead be provided.
  • Wire Info Document (download sample is on our portal)

 

**If the partnership has employees, they ALSO need to provide:

  • Payroll summary report (or W2’s on all employees) for the corresponding year, which reflect all employee annual wages, taxes withheld, etc.
  • 2019 or 2020 IRS Form 940 or 941 for all 4 Quarters (whichever year the borrower chooses to base their loan on)
  • A payroll statement from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.
  • Any other corresponding documentation that you wish to include in the loan amount calculation, such as receipts for employees’ health insurance paid by the company
For Businesses that File as S corporations and C corporations
  • Entity Formation Documents/Articles of Incorporation
  • Driver’s License (or passport) on all owners of 20% or more of the borrowing entity
  • 2019 or 2020 IRS Form 1120 or IRS 1120-S Business Tax Return
  • Payroll summary report (or W2’s on all employees) for the corresponding year, which reflect all employee annual wages, taxes withheld, etc.
  • 2019 or 2020 IRS Form 940 or 941 for all 4 Quarters (whichever year the borrower chooses to base their loan on)
  • A payroll statement from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.
  • Wire Info Document (download sample is on our portal)
  • Any other corresponding documentation that you wish to include in the loan amount calculation, such as receipts for employees’ health insurance paid by the company
For Businesses that File as eligible nonprofit organizations
  • Entity Formation Documents/Articles of Incorporation
  • Driver’s License (or passport) on all owners of 20% or more of the borrowing entity
  • 2019 or 2020 Filed IRS Form 990
  • Payroll summary report (or W2’s on all employees) for the corresponding year, which reflect all employee annual wages, taxes withheld, etc.
  • 2019 or 2020 IRS Form 940 or 941 for all 4 Quarters (whichever year the borrower chooses to base their loan on)
  • A payroll statement from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.
  • Wire Info Document (download sample is on our portal)
  • Any other corresponding documentation that you wish to include in the loan amount calculation, such as receipts for employees’ health insurance paid by the company

PPP Round Two

For all 2nd Draw PPP Loan Requests

Under $150,000 PPP Loans
  • Entity Formation Documents, if applicable
  • Driver’s License (or passport) on all owners of 20% or more of the borrowing entity
  • 2019 or 2020 IRS Form 940/1120S (whichever year the borrower chooses to base their loan on)
  • Payroll summary report (or W2’s on all employees) for the corresponding year, which reflect all employee annual wages, taxes withheld, etc. (in order to comply with SBA’s guidelines to filter-out compensation above $100k for loan amount calculations)
  • Any other corresponding documentation that you wish to include in the loan amount calculation, such as receipts for employees’ health insurance paid by the company
  • Email Wire Info Document (download sample is on our portal)
Over $150,000 PPP Loans
  • Entity Formation Documents, if applicable
  • Driver’s License (or passport) on all owners of 20% or more of the borrowing entity
  • 2019 or 2020 IRS Form 940/1120S (whichever year the borrower chooses to base their loan on
  • IRS Form 941 (quarterly payroll tax forms) for all four quarters of 2019 and 2020 (Q4 as well, if available)
  • 2019 Business Tax Returns
  • Quarterly P&L Financial Statements for 2019 and 2020 OR just the comparative quarters showing at least a 25% revenue reduction (i.e. Q2 2019 vs. Q2 2020).  PLEASE sign the front page of these and initial each additional page.
    • If you have affiliate entities, you must also provide quarterly P&L Financial Statements for the same periods above for each entity. The SBA requires Lenders include the affiliates’ revenue in the reduction calculation
  • Payroll summary report (or W2’s) for the corresponding period, which reflect all employee annual wages, taxes withheld, etc. (in order to comply with SBA’s guidelines to filter-out compensation above $100k for loan amount calculations)
  • Any other corresponding documentation that you wish to include in the loan amount calculation, such as receipts for employees’ health insurance paid by the company
  • Wire Info Document (download sample is on our portal)