COVID-19 Update: Beaird Harris has shifted a significant number of our team members to work remotely.
We continue to serve and care for our clients, just as we always have, and are available by phone, video or email.

Beaird Harris will be closed on Friday, July 3rd in observance of the Independence Day holiday.

Preparing for the Next Round of PPP Funding

April 20, 2020

The initial Paycheck Protection Program (“PPP”) funds have been exhausted. In less than two weeks, $349 billion were claimed by around 1.6 million small business owners. While 1.6 million may sound like a tremendous amount, that number represents a mere 6% of America’s small businesses. This means 94% of small business owners, many of which desperately needed infusions of cash, have been left to fend for themselves.

If the program is extended, small businesses that either did not receive approval or missed the initial PPP loan window should be ready to move quickly on the next wave of applications. You should check with your bank to see if they are still accepting PPP loan applications. If they are not accepting applications until more PPP funding is approved, this could affect your approval and funding if the second round of PPP allotment is quickly exhausted. You may want to consider working with another bank that is still accepting outside applications, especially if you have another reliable banking relationship.

We hope Congress will move swiftly to approve additional PPP funding.  It appears that this could happen as early as this week.  As of last night, Democrats and Republicans were negotiating a deal that would allocate an additional $310 billion into the PPP, setting aside $60 billion of that sum for rural and minority groups.

If you wish to participate in this next round of funding, submitting a complete application to your lender as soon as possible is of paramount importance. The following is a list of common items banks are requesting with PPP loan applications. All of these reports should be scanned into PDF format and ready to upload to your bank portal with the application.

All Applicants

  • Legal name of the business and Federal tax ID number
  • Business start date
  • Government issued ID such as a driver’s license (front and back) 
  • Business Bank account and routing number
  • Formation documents: Articles of incorporation or organization, operating agreement, bylaws, etc.
  • All applicants will need to complete an application form.  Your bank may have a slightly different version to this one, but you should fill this out in advance to ensure you have the core information that most banks are asking for.  

Sole Proprietors, Self-Employed and Independent Contractors

  • 2019 IRS Form 1099-MISC if you are an independent contractor
  • 2019 IRS Form 1040 Schedule C if your business is a sole proprietorship

If You Have Employees 

  • 2019 IRS payroll tax reports – Forms 940, 941, W-3 & W-2. 
    • If you are a Beaird Harris payroll client, we have previously sent you an email with the payroll reports you will need for the application.
    • If you use a payroll service, many payroll companies have created a special COVID -19 payroll summary report to assist you with the data needed to complete the bank loan calculators, in addition to the payroll tax reports needed. 
  • 2019 general ledger report of group health insurance premiums paid as well as supporting statements of payments.
  • 2019 general ledger report of retirement plan expenses as well as supporting statements of payments.
  • 2019 summary of state & local taxes assessed on employee compensation.  If you are in Texas, this is the quarterly amount paid for state unemployment tax, and does not include any other payroll taxes paid.  
  • Other 2019 payroll data that may be needed, depending on your bank – monthly payroll report detailing salary, wages, commissions, or tips (not exceeding $100,000 annually for each employee).
    • If you have employees making over $100,000, provide their W-2s and have the excess above $100K for each employee for the bank loan calculator
    • Costs for vacation, parental, family, medical or sick leave
  • January – March 2020 payroll summary report, by payroll run, that details number of employees paid and amounts paid to each.
  • 2020 first quarter payroll reports.

Additional information on the PPP loan and application process:

Return to COVID-19 Response & Resources

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