These businesses are eligible:

• • Sole Proprietors
  • Independent contractors
  • Self-employed individuals
  • Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations
  • Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
  • Faith-based organizations that have less than 150 employees
  • Housing cooperatives that employ less than 300 people

The following businesses remain ineligiblefor PPP loans:

• • Lobbying organizations
    • Organizations involved in political activities or public policy
  • Lenders or financial services businesses
  • Cannabis businesses (or any other businesses that deal with products that are illegal at the federal level)
  • Household employers (such as those who employ housekeepers or nannies)
  • Businesses that have defaulted on SBA or federal loans
  • Any business that is at least 20% owned by someone who is currently incarcerated, on probation, on parole, or subject to an indictment
  • Any business that is at least 20% owned by someone who has been convicted of a felony within the last five years
  • Entities affiliated with the People’s Republic of China or Hong Kong or that have a member on their board of directors that is a resident of the People’s Republic of China
  • Registrants under the Foreign Agents Registration Act
  • Entities that have received or will receive a grant under the Shuttered Venue Operator Grant program

• To be PPP eligible, businesses must employ 300 or fewer employees (down from 500 in Round One)
• Borrowers must demonstrate at least a 25% reduction in gross receipts in any quarter of 2020 compared to the same quarter in 2019
  • For example, Q3 2020 revenue less than Q3 2019 revenue by 25% or more ⁃
  • Borrower may choose the quarters for comparison but must be in the same quarter of 2020 and 2019.
  • Certain exceptions may be allowed for newer businesses not in operation for all of 2019
  • Be prepared to support with financial statements, tax return information, other financial records, or Borrower attestation
• If you are a repeat borrower, you must have used or you will use the full amount of first PPP loan

Yes.

This requirement needs to be met at the time of the application. Yes, part-time employees are included  in the total employee count.

List of required PPP application documents:

1. Completed PPP Application Form

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2. Average monthly payroll costs (only applies to businesses with employees)
   • Show your work. Borrowers must “show their work” on how they calculated the requested loan amount, and retain the supporting documentation used to get to that figure.

3. 2019 Proof of Payroll Costs (or Self Income)

• If you have employees (even as a partnership), you must provide one of these documents:
  • IRS Form 940 for 2019
  • IRS Form 941 for 2019 (Please note this is a quarterly form, so you must include all four quarters unless you were established less than a year ago. If that is the case, then you need to provide a Form 941 for every quarter since you were established
  • IRS Form 944 for 2019
  • Payroll processor records from a PEO (Professional Employer Organization)
• If you are a partnership without employees, you must provide:
  • 2019 Schedule K-1 (IRS Form 1065). [See here for more info.] Check profit noted on line 14a. If you have no employees and line 14a is $0 or less, you do not qualify for a PPP loan.
• If you are self-employed as a sole proprietor or independent contractor without employees, you must provide a 2019 IRS Form 1040 Schedule C, to prove your own income. Check profit noted on line 31. If line 31 shows $0 or less, you do not qualify for a PPP loan.
• Proof of health insurance payments may also be accepted (but are not required) as part of the lender’s document review and loan calculation process. For Sole Proprietors & Independent Contractors, receipts and invoices showing payments can be in your name. All other types of companies should share receipts, invoices, or a PEO report if available in the name of the business (not your own name).

4. Proof of Ownership

You must provide each owner’s name and Social Security Number (SSN), Taxpayer Identification Number (TIN), or Employer Identification Number (EIN), plus one of these documents listed below, as applicable to your business type. (If your business has more than one owner over 20%, you must list the percentage of all owners).

• For corporations (with employees) and partnerships:
  • 2019 Schedule K-1 (IRS Form 1065). [See here for more info.]
  • 2018 Schedule K-1 (IRS Form 1065) may also be acceptable if the primary owner provides a written statement that ownership has not changed since 2018 or detailing how the ownership has changed.
  • Articles of incorporation (with SSN) if they show ownership, and must show % of ownership to be acceptable.
  • Bylaws or operating agreement if they show ownership, and must show % of ownership to be acceptable.
• For Sole Proprietors and Independent Contractors:
• • 2019 IRS Form 1040 Schedule C that shows business name and owner name, or
  • 2018 IRS Form 1040 Schedule C may be acceptable if the primary owner provides a written statement that ownership has not changed since 2018 or detailing how the ownership has changed.
  • IRS Form W9 (for Independent Contractors only).

5. Unexpired, Government-issued Driver’s License or Passport for All Owners Over 20%

Each owner must be accounted for in the PPP application form. Along with each owner’s TIN, EIN, or SSN, lenders will also require a government-issued ID such as a Passport or a state-issued Driver’s License.

6. Email Addresses for All Owners with 20% or More of the Business
7. Electronic Funds Transfer Information

So the lender can deposit approved funds into your account, you may be asked to provide a bank statement (either an electronic [pdf] or scanned copy) showing both the name on the account and the account number. Some lenders (not Fundbox) may accept a voided check. If the account number is misidentified, the wrong bank account will be credited.

• For independent contractors and sole proprietors, the bank statement can be in the owner’s name.
• For all other business types, the bank statement must be in the business name.

8. Proof of Business Operation and Active Status with Secretary of State

To verify that your business is Active and in Good Standing, you need to provide either a pdf or just a screenshot of the certificate from the Secretary of State website showing your business is both Active and in Good Standing. It must be current for the month you apply for the PPP loan.

Note: this certificate is not required for Independent Contractors and Sole Proprietors. However, to prove you were in operation as a sole proprietor or contractor, you’ll need to provide a 2020 invoice, bank statement, or book of record establishing that you were in operation on or around February 15, 2020.