The 2021 PPP loan guidelines and application.
The 2021 PPP loan guidelines and application
The 2021 Paycheck Protection Program – Apply Now
What you need to know
Get prepared for your next Paycheck Protection Program (PPP) Loan application.
Use the checklist below to prepare in advance for your second PPP loan application. When the SBA releases the updated guidelines for the PPP funding, First Union Lending will notify you immediately, so you can begin your loan application.
How do I know if my business is eligible?
Previous PPP loan recipients with fewer than 300 employees may qualify if they have more than a 25% drop in revenue from the previous year. If you are applying for your second PPP loan, you will need to have used the full amount of funds from your first PPP loan before your second is disbursed.
What is the Paycheck Protection Program (PPP)?
The 2021 PPP loan program is now offering loans up to $2 million calculated based on 2.5x your average monthly payroll costs. As long as you use the proceeds of the loan according to the SBA guidlines, these loans may be 100% forgiven.
What are “payroll costs”?
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee)
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal.
- State and local taxes assessed on compensation
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, caped at $100,000 on an annualized basis for each employee
What are the rules to get the loan forgiven?
The SBA has not yet provided a full list of rules. We will provide them as soon as we receive them.
Small businesses with fewer than 300 employees (subject to certain limited exceptions); independent contractors; and sole proprietors in business on February 15, 2020 can all qualify.
How much can I get?
Assuming you qualify, you calculate the max loan value by:
- Aggregating all annual payroll costs of US-based employees and subtract compensation over $100,000 paid to employees or independent contractors.
- Calculating the average monthly payroll costs (take total annual payroll and divide by 12)
- Multiplying the average payroll costs by 2.5
You will need to prepare the following documents in order to move forward with the PPP Loan Application:
A CARES Act Report is geneated straight from your payroll provider, such as ADP or Gusto. This method allows your loan processing team to review your loan quicker.
Tax Documents for 2019
Choose a tax document that’s easiest for you to provide. Your selected tax document will depend on your business’s entity type:
Tax Documents Required
A Voided Check
You will need to submit a photo or a copy of a voided check, front and back, from your business bank account
Driver’s License or Passport
You will need a photo or color copy of the front and back of your identification. Taking a photo with your smartphone works well.
Please keep in mind that with First Union:
- There are no application, registration or closing fees. No fees whatsoever
- Borrowers may still qualify loan forgiveness
* The SBA (Small Business Administration), the government agency in charge of overseeing the PPP Loan and other disaster loan programs makes the final decision on the funding it approves through our platform. We will try to keep you updated, however, keep in mind that the SBA is inundated and we must rely on them for any updates first.
By submitting your application and required documentation now, you will be holding your place in line while Congress approves the additional funding being added to the program.