Application

First Draw PPP Loans:

1. Determine if you are eligible for a PPP Loan. For most applicants, the basic requirements are:
   • You are an approved business type such as:
     • a sole proprietor
     • self-employed person, 1099 contract employee, Schedule C filer, farmer, partnership, LLC, S-Corporation, C-Corporation, housing cooperative, tribal business concern, destination marketing organization, or small agricultural cooperative
   • You were operation on or before 2/15/2020
   • You employ 500 or fewer employees (includes self-employed persons with no employees, etc.)
   • Meet all additional SBA PPP eligibility requirements
2. Determine your maximum loan amount
3. Apply through an approved PPP lender (Womply can help connect you with the best lender for you and your situation).

Second Draw PPP Loans:

1. Determine if you are eligible for a Second Draw PPP Loan. For most applicants, the basic requirements are:
   1. Have fewer than 300 employees
   2. Demonstrate at least a 25% reduction in gross receipts in 2020, calculated by comparing quarterly gross receipts for one quarter in 2020 with those for the corresponding quarter in 2019, or a 25% reduction in annual gross receipts if the borrower was in operation for all of calendar year 2019. Applicants that were not in operation in 2019 but were on Feb. 15, 2020, can demonstrate this reduction between 1) Q1 of 2020 and 2) Q2, Q3, or Q4 of 2020.
   3. You must not be:
      1. a permanently closed entity; those that are temporarily closed or suspended are eligible.
      2. engaged in political activities or lobbying activities
      3. be organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong. Applicant may not have specified ties to the People’s Republic of China or the Special Administrative Region of Hong Kong.
      4. be a publicly traded company.
2. Determine your maximum loan amount
3. Apply through an approved PPP lender (Womply can help connect you with the best lender for you and your situation).
   • If you apply through a different lender than the one who facilitated your First Draw loan, you will need your PPP First Draw SBA Loan Number – this is a 10-digit number provided to you by your lender.

No, Womply does not charge you a fee for your PPP application. It’s illegal for any company to charge a borrower to access the PPP program. Companies such as Womply (we are not a lender) receive compensation from our lender partners. Lenders get paid fees by the government for providing PPP loans. Neither Womply nor any PPP lender will charge you to access the PPP program.

Yes. Your loan can only be funded by a single lender, but you may apply for your PPP loan with multiple lenders.

The applicant must submit the Paycheck Protection Program Borrower Application Form (SBA Form 2483), or lender’s equivalent form. They will also most likely need the following documents (required documents may vary by lender, but these are the most commonly requested documents).

For independent contractors/sole proprietors/self-employed/1040 Schedule C/1099 contractors without employees:

• 2019 or 2020 IRS Form 1040 Schedule C. (If you are using 2020 to calculate the loan amount but you haven’t filed your 2020 taxes yet, you may provide a draft.)
• If you are including an Economic Injury Disaster Loan (EIDL) that was taken from 1/31/20-4/3/20, provide a bank statement showing the deposit into your business account.
• Invoice, bank statement, book of record, or a 1099-MISC that covered the period up to 2/15/2020.
• Driver’s License (or other government issued photo ID, like a passport). Each owner of more than 20% must be accounted for in the PPP application form and require a copy of a government-issued photo ID such as a state-issued driver’s license or passport.
• Voided check. So the lender can deposit approved funds into your account, you may be asked to provide a voided check. Some lenders (but not all) may accept electronic funds transfer information by other means.

For sole proprietors/self-employed with employees:

• Payroll/health insurance/retirement benefits for employees: 2019 or 2020 IRS 1040 Schedule C.
• Form 940 or four quarterly Form 941s.
• State quarterly wage unemployment insurance tax reporting forms for each quarter.
• If you are including an Economic Injury Disaster Loan (EIDL) that was taken from 1/31/20-4/3/20, provide a bank statement showing the deposit into your business account.
• Invoice, bank statement, book of record, or a 1099 MISC that covered the period up to 2/15/2020.
• Driver’s License (or other government issued photo ID, like a passport)
• Voided check

For corporations (& LLCs that file as corporations):

• For owner’s income: a 2019 or 2020 IRS Form 1040 Schedule C. (If you are using 2020 to calculate the loan amount but you haven’t filed your 2020 taxes yet, you may provide a draft.)
• Form 940 or four quarterly Form 941s.
• Form 1120 or Form 1120-S tax return to substantiate health insurance or retirement benefits to employees.
• If you are including an Economic Injury Disaster Loan (EIDL) that was taken from 1/31/20-4/3/20, provide a bank statement showing the deposit into your business account.
• Invoice, bank statement, book of record, or a 1099 MISC that covered the period up to 2/15/2020.
• Quarterly state wage unemployment insurance tax reporting forms (for each quarter).
• Driver’s License (or other government issued photo ID, like a passport). Each owner of more than 20% must be accounted for in the PPP application form and require a copy of a government-issued photo ID such as a state-issued driver’s license or passport.
• Voided check. So the lender can deposit approved funds into your account, you may be asked to provide a voided check. Some lenders (but not all) may accept electronic funds transfer information by other means.
• Articles of incorporation filed with the state for the most recent year. These are available from the state’s Secretary of State website.

For partnerships (& LLCs that file as partnerships):

• 2019 or 2020 IRS Form 940 or four quarterly Form 941s.
• 1065 tax return (including K1’s) to substantiate health insurance or retirement benefits to employees, and self-employment earnings for the partners.
• State quarterly wage unemployment insurance tax reporting forms for each quarter.
• Invoice, bank statement, book of record, or a 1099 MISC that covers the period 2/15/20.
• Driver’s License or other government issued ID. Each owner of more than 20% must be accounted for in the PPP application form and require a copy of a government-issued photo ID such as a state-issued driver’s license or passport.
• Voided check

For non-profits:

• 2019 or 2020 IRS Form 940 or four quarterly Form 941s.
• Form 990 showing health insurance and/or retirement plan benefits to employees.
• State quarterly wage unemployment insurance tax reporting forms for each quarter
• Parsonage report (if applicable)

Second Draw Applicants should be prepared to provide documents showing proof of 25% revenue reduction (for a second draw PPP)

• If you’ve received and exhausted a previous first-time PPP loan, you may now qualify for a second draw PPP. In addition to the documents listed above, you will need one of the following (your choice) to demonstrate your revenue reduction:
• 2019 and 2020 tax forms (IRS Form 1040 Schedule Cs).
• 2019 and 2020 quarterly income statements (for the same quarter for 2019 and 2020)
• If the business started between 1/1/2020-2/15/2020, quarterly income statements or bank statements for Q2, Q3, or Q4 compared to Q1.
• 2019 and 2020 bank statements (for the same quarter for 2019 and 2020).

The time it takes for your PPP loan to get approved can vary greatly depending on circumstances. However, most loans are typically approved within a few days.

If you applied through Womply:

• check the status of your PPP loan request here

If you did not apply through Womply:

• you will most likely need to contact your lender

Most lenders will accept one of the following in place of a voided check:

• A copy of your bank statement if it has both your account number and routing number or;
• A direct deposit form from your bank with your account number and routing number clearly shown

Borrowers may use their average employment over the time period used to calculate their loan amount to determine their number of employees, for the purposes of applying an employee-based size standard. Alternatively, borrowers may elect to use SBA’s usual calculation: the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application (or the average number of employees for each of the pay periods that the business has been operational, if it has not been operational for 12 months).

Seasonal businesses must use the average number of employees per pay period during the 12-calendar week period the borrower used to calculate its payroll costs.

After your PPP loan has been given an ETRAN number, and been approved the lender has 10 business days to deliver the funds to your account

Yes. However, the borrower should bear in mind that, as the Borrower Application Forms indicate, only an authorized representative of the applicant seeking a loan may sign on behalf of the applicant. An individual’s signature as an “Authorized Representative of Applicant” is a representation to the lender and to the U.S. government that the signer is authorized to make the certifications, including with respect to the applicant and each owner of 20% or more of the applicant’s equity, contained in the Borrower Application Form. Lenders may rely on that representation and accept a single individual’s signature on that basis

In general, borrowers can calculate their aggregate payroll costs using data either from the previous 12 months or from calendar year 2019. For seasonal businesses, the applicant may use average monthly payroll for the period between February 15, 2019, or March 1, 2019, and June 30, 2019. An applicant that was not in business from February 15, 2019 to June 30, 2019 may use the average monthly payroll costs for the period January 1, 2020 through February 29, 2020.

Borrowers may use their average employment over the same time periods to determine their number of employees, for the purposes of applying an employee-based size standard. Alternatively, borrowers may elect to use SBA’s usual calculation: the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application (or the average number of employees for each of the pay periods that the business has been operational, if it has not been operational for 12 months).

No. Borrowers and lenders may rely on the laws, rules, and guidance available at the time of the relevant application. However, borrowers whose previously submitted loan applications have not yet been processed may revise their applications based on clarifications reflected in these FAQs.

No. There is no credit check for this program. Applying for a loan will not affect your credit, nor will receiving one.

On the PPP borrower application, an authorized representative of the applicant must certify in good faith to all of the below:

• The Applicant was in operation on February 15, 2020, has not permanently closed, and was either an eligible self employed individual, independent contractor, or sole proprietorship with no employees, or had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099–MISC.
• Current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.
• The funds will be used to retain workers and maintain payroll; or make payments for mortgage interest, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures as specified under the Paycheck Protection Program Rules; I understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold me legally liable such as for charges of fraud. (As explained above, not more than 40 percent of loan proceeds may be used for nonpayroll costs.)
• I understand that loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, covered utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures, and not more than 40% of the forgiven amount may be for non-payroll costs. If required, the Applicant will provide to the Lender and/or SBA documentation verifying the number of full-time equivalent employees on the Applicant’s payroll as well as the dollar amounts of eligible expenses for the covered period following this loan.
• The Applicant has not and will not receive another loan under the Paycheck Protection Program, section 7(a)(36) of the Small Business Act (15 U.S.C.636(a)(36)) (this does not include Paycheck Protection Program second draw loans, section 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(37)).
• The Applicant has not and will not receive a Shuttered Venue Operator grant from SBA. 
• The President, the Vice President, the head of an Executive department, or a Member of Congress, or the spouse of such person as determined under applicable common law, does not directly or indirectly hold a controlling interest in the Applicant, with such terms having the meanings provided in section 322 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.
• The Applicant is not an issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f).
• I further certify that the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects. I understand that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 U.S.C. 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 U.S.C. 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 U.S.C. 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000. x. I acknowledge that the Lender will confirm the eligible loan amount using required documents submitted. I understand, acknowledge, and agree that the Lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

No. Borrowers and lenders may rely on the laws, rules, and guidance available at the time of the relevant application. However, borrowers whose previously submitted loan applications have not yet been processed may revise their applications based on clarifications reflected in these FAQs.

Yes. SBA reminded all borrowers of an important certification required to obtain a PPP loan. To further ensure PPP loans are limited to eligible borrowers in need, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application. Additional guidance implementing this procedure will be forthcoming. The outcome of SBA’s review of loan files will not affect SBA’s guarantee of any loan for which the lender complied with the lender obligations.

When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of First Draw PPP Loans with respect to this issue: Any borrower that, together with its affiliates,58 received First Draw PPP Loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the First Draw PPP Loan request in good faith.

SBA has determined that this safe harbor is appropriate because borrowers with First Draw PPP Loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.

Importantly, borrowers with First Draw PPP Loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required goodfaith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form. If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding First Draw PPP Loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the First Draw PPP Loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. SBA’s determination concerning the certification regarding the necessity of the loan request will not affect SBA’s loan guarantee.

For Second Draw PPP Loans, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Because Second Draw PPP Loan borrowers must demonstrate that they have had a 25% reduction in gross revenues, all Second Draw PPP Loan borrowers will be deemed to have made the required certification concerning the necessity of the loan in good faith. The loan amounts received by borrowers for First Draw PPP Loans and Second Draw PPP Loans will not be aggregated.

Yes, e-signature or e-consents can be used regardless of the number of owners

No. Except as set forth in subsection D.8, the Administrator, in consultation with the Secretary, determined that no eligible borrower may receive more than one First Draw PPP Loan. This means that if you apply for a PPP loan you should consider applying for the maximum amount. Any borrower who received a PPP loan in 2020 received a First Draw PPP Loan and is not eligible to receive another First Draw PPP loan, but may be eligible for a Second Draw PPP loan.

For PPP loans made before December 27, 2020, if the President of the United States, Vice President of the United States, the head of an Executive department, or a Member of Congress, or the spouse of such person as determined under applicable common law, directly or indirectly holds a controlling interest in the borrower, the principal executive officer, or individual performing a similar function, of the borrower must disclose that information to SBA. Such disclosure must be made not later than January 26, 2021, if the borrower submitted an application for forgiveness before December 27, 2020, or not later than 30 days after submitting an application for forgiveness.

The following borrowers can reapply or request an increase in their PPP loan amount: a. If a borrower returned all of a PPP loan, the borrower may reapply for a PPP loan in an amount the borrower is eligible for under current PPP rules. b. If a borrower returned part of a PPP loan, the borrower may reapply for an amount equal to the difference between the amount retained and the amount previously approved. c. If a borrower did not accept the full amount of a PPP loan for which it was approved, the borrower may request an increase in the amount of the PPP loan up to the amount previously approved. Any request for an increase must be submitted electronically in E-Tran on or before March 31, 2021, and is subject to the availability of funds. SBA will issue additional guidance on the process to reapply or request a loan increase under subsections D.6, D.7, and D.8. 9.

Yes. Borrowers must apply the affiliation rules set forth in SBA’s Interim Final Rule on Affiliation. A borrower must certify on the Borrower Application Form that the borrower is eligible to receive a PPP loan, and that certification means that the borrower is a small business concern as defined in section 3 of the Small Business Act (15 U.S.C. 632), meets the applicable SBA employee-based or revenue-based size standard, or meets the tests in SBA’s alternative size standard, after applying the affiliation rules, if applicable. SBA’s existing affiliation exclusions apply to the PPP, including, for example the exclusions under 13 CFR 121.103(b)(2).