In this 4-minute read:
- What can you do if you made a mistake on your PPP loan application?
- What should you do if you put too much or too little for your loan amount?
- Can I resubmit or amend my PPP application?
- Ways to prepare for your PPP loan application and get it right the first time
With this new round of the Paycheck Protection Program loans, business owners are working to get their applications filled out correctly and quickly in order to get their loans as fast as possible. If you’re applying for the PPP loan, it’s important to make sure you fill out the application accurately the first time for the best results, but if you did make a mistake, you’re not at a total loss.
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What can you do if you made filled out your PPP loan application wrong/incorrectly?
Mistakes happen. Maybe you put the wrong EIN or didn’t put enough for your loan amount. Perhaps you neglected to include some revenue and remembered later, so you actually qualify for more PPP funding. Whatever the situation may be, there are ways to get through it.
First, if you feel that you made a mistake on your PPP loan application, reach out to your lender as soon as you can. See if they have submitted your application to the SBA yet (you should receive notification from them when they do). If they haven’t, you can request to submit a new application through them with the errors corrected.
If they have submitted your application to the SBA for approval already, then you may have to wait to see what happens when the SBA receives it. Depending on the mistake made, they may still approve the loan. Unfortunately, there is not a lot of information out there about whether or not you can request to update your PPP loan application once it reaches the SBA, but you will have options based on whether your loan application is approved or denied.
If you made a mistake on your loan application, and it was approved, then you can still get your loan. (Read on to find out what to do if you received too much or too little for your loan.)
If your loan application was not approved due to a mistake, then you can correct your error/s and resubmit your application.
What should you do if you put too much or too little for your loan amount? Can you amend your PPP application or resubmit?
Outside of correcting your application before it gets sent to the SBA, there’s little that you can do until you receive notice of your loan approval if you’ve accidentally requested too much or too little.
Generally, if you’ve requested too much, the SBA and your lender will correct the mistake during the application/approval process and only offer the maximum loan amount that you are qualified for based on your verified records. If you feel you’ve gotten approved for a larger loan amount than you think you can spend within your covered period, you can either work to spend your funds according to the PPP rules (at least 60% on payroll, and the rest on approved PPP expenses), or simply return the unused portion to your lender. Document it carefully to ensure your lender and the SBA have proof that you returned any overage.
There’s no prepayment penalty for paying off your loan early. You may also be able to work with your lender to only accept the portion of the PPP loan that you actually do need, and deny acceptance the rest, ensuring that you only receive the amount that you can spend appropriately to maintain full loan forgiveness.
Again, the chances of you receiving the wrong amount are pretty small, because you will only be approved for the maximum amount allowed by the PPP based on your records when you apply.
However, if you feel you requested too little for your PPP loan, there are certain instances in which the SBA may approve an increase for your PPP loan. See a detailed list here.
If your approved loan amount was too little or too much due to lender input error, then they can submit this form to the SBA to request a correction.
Ways to prepare for your PPP loan application and get it right the first time
The best thing that you can do if you haven’t submitted your application yet is to get it right the first time. Do everything that you need to do to be prepared for the application process. Get all of the numbers that you need and documentation that you’ll need for verification purposes.
See our full checklist: PPP lender document checklist: Everything you need to get approved (Updates for 2021)
Working with the right lender is also a crucial step in this process. A loan agent can help connect you with an eligible SBA 7(a) lender and walk you through the application process to ensure no mistakes are made.
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