SBA Paycheck Protection Program (PPP) Loan Resource Page
Since beginning to accept applications for the Paycheck Protection Program on April 24, 2020, Opportunity Fund has received a significant volume of applications. As we work on processing those applications, we have paused acceptance of new PPP loan applications. We will review all the applications we’ve received as of May 20, 2020. We will update this page if and when we resume accepting new applications.
To find an SBA-approved lender near you visit the SBA website: https://www.sba.gov/paycheckprotection/find
Please see below for helpful information and resources related to PPP loans.
Resources to Prepare
Please review and prepare with the resources and information we have for you below, including the PDF form which you will need to complete along with the documents required to proceed with the loan application process.
- Your business was in operation as of February 15, 2020
- You’re an independent contractor or sole proprietor or your business/organization has employees who reside in the U.S.
- Truck owner/operators and Mobile Food Businesses can qualify. See requirements below
Use of PPP loan funds
PPP loans will help small businesses, including sole proprietors and independent contractors, and private non-profits maintain payrolls and continue necessary payroll-related payments like rent and utilities. The loan may be used for:
- Payroll costs: compensation in the form of salaries, wages, commissions, cash tip payments. If you don’t have employees, the loan can be used to cover owner’s compensation (net profits)
- Healthcare costs: any costs related to the continuation of group healthcare benefits, including insurance premiums
- Mortgage interest payments (but not payments on the mortgage principal)
- Interest on any other debt obligations incurred before February 15, 2020
How is the PPP loan calculated for my business
PPP loans are calculated based on 2.5 times your business’s (or organization’s) monthly payroll costs. Payroll costs include compensation, as outlined above, along with other payroll-related costs like retirement payments, state and local taxes on payroll, payment for vacation or paid leave, group healthcare costs, and allowances for separation or dismissal. Use our template to calculate your loan size here.
- Your loan amount depends on your legal structure and whether you have employees or are self-employed. To help accurately calculate your annual payroll, please refer to our Cheat Sheet.
- Once you calculate your annual payroll figure, use our loan calculator (enter the annual payroll into cell B8/B21/B34) to figure out your max loan amount.
- If you request more than 2.5X your monthly payroll, your application will be delayed.
Documentation Requirements for PPP Loan Application
For business validation, each applicant must provide the following supporting documentation. Important Tip: Your tax documentation is most important for your loan application.
For more details on documentation based on your business legal structure, see our Cheat Sheet.
All applicants must have the following:
- 2019 Tax Returns
- Photo ID
- Business bank statement showing activity in February 2020
If you had employees in 2019, regardless of business entity type:
- IRS Form 941 Employer’s Quarterly Federal Tax Returns for 2019 (March, June, Sept, Dec) and Q1 2020 if available;
- Form 940 for 2019 Employers Annual Federal Unemployment (FUTA) Tax Return
List of employees and their annual compensation. Highlight the employees who had compensation over $100,000If the loan request amount includes other eligible payroll costs such as payment for vacation, parental, family, medical or sick leave, allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; or payment of state and local taxes assessed on compensation of employees, the payroll ledgers should reflect these additional eligible payroll costs.
If you are a Sole Proprietor and you did not have any employees:
- IRS Form 1040 Schedule C for 2019. If you have not filed taxes for 2019, you can fill in your Schedule C to submit with your loan application. Please consult your tax preparer. You may download the form here: https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
If you are a truck owner/operator:
- Copies of your freight settlement statements from February 2020 to show you were in business
Paycheck Protection Program Forgiveness
The SBA expects a high volume of forgiveness requests. No more than 25% of the forgiven amount can be for non-payroll costs (i.e., mortgage interest, rent, and utilities). If your business has laid off employees, that will also affect how much your loan can be forgiven. The total effect on your PPP loan’s forgiveness-eligibility depends on some complicated math that we will help you calculate. You can also do an estimate on the excel sheet provided here. Please note it is an estimate.
To receive loan forgiveness, a borrower must provide documents verifying payments (on mortgage interest, rent, and utilities) and payroll (number of employees, pay rates, including IRS payroll tax filings and state income, payroll, and unemployment insurance filings). These documents must be certified from a representative of the business that the information is true.