Tips for small businesses to access loans and grants

Apr 23, 2020
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Written by wpengine
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Inside Washington Retail

Small businesses are anxiously waiting for Congress’ approval this week additional funding to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).

Whether you are still in the process of applying for or waiting for approval, you may find the following information helpful.

  • Paycheck Protection Program (PPP)
    • Essential documents for a PPP application
      • IRS Form 940 and/or Form 941 for the previous tax year
      • Form W-2 Wage and Tax Statement Employer Reference Copy, if applicable
      • Payroll summary report for 2020
      • Payroll processor records
      • Payroll tax filings IRS
      • Form 1099-MISC
      • Benefit expenses covered by the CARES Act PPP
    • Start counting 8 weeks of payroll once funds are in your bank
    • The number of employees must be the same as your application documents
    • The option to not re-hire the same names on a prior payroll is available if the number of employees stays the same.
    • 501c6 is not eligible unless Congress makes this change in the next round of funding.
    • Unemployment benefits will cease for employees who refuse to come back to work when work is available.
    • Paying a bonus to employees under PPP funding may not meet the forgivable criteria.

 

  • Economic Injury Disaster Loan (EIDL)
    • Takes 3-5 weeks for application processing due to the number of applications
    • Only 20% of loans were processed around the week of 4/13
    • Check status at 1.800.659.2955
    • 501c6 organizations that do NOT lobby are eligible to apply for EIDL.
    • Forgiven amount (grant) is $1,000 per employee in the business
    • SBA processing with no bank involvement