How To Apply For New Ppp Loan
Want to apply for a PPP loan? Don’t know how to apply for new ppp loan? I am here to help you with all information about PPP loans.
PPP or Popular Protection Program loans means an approach to entirely forgivable loans. Only self-employed and small businesses can apply for this loan. This PPP loan is also considered as a first draw PPP loan. If you have already received your first loan and are looking for the second one, you can get one. But you will need to match their condition to get a second PPP loan. I’m leaving to talk about the second PPP loan today; if you want to know about how to apply for a second PPP loan, you can comment below; I will tell you about that in another article. Now, this article is dedicated to the people waiting for a new PPP loan. So let’s scroll down and learn more about applying for a new PPP loan.
How To Apply For New Ppp Loan
Before we know how to apply for a new PPP loan we have to know some more information like what eligibility you will need to apply for a new PPP loan, where you have to apply for a PPP loan, which application rules you have to follow, and then how to apply for a new PPP loan. So let’s dive into all these and learn more about PPP loans.
Eligibility To Apply For The New Ppp Loan
Any business just can’t apply for the new PPP loan, or if you still apply after not having the eligibility, then the authority will disqualify your application. So you need to know about the eligibility, match them with your business and ask yourself do you have these qualifications or not? What to ask? Let’s know.
Was your business operating before 15.02.2020? Is it still open and serviceable? Do you have more than 500 employees working in your business? Do you have more business locations, and there aren’t more than 500 employees working in each location?
If all these questions answer is “Yes” from you, then it’s a yes from me; I mean, you are eligible to apply for a new PPP loan.
Where Should You Apply For New Ppp Loan?
Few options are there for you to apply for a new PPP loan. You can apply to your local bank, FinTech, or community development financial institute. All these institutes should have a PPP loan option; if you are eligible to apply for a PPP loan as a small business, local banks can be proved as the best option for you.
Process Apply For New Ppp Loan
- Business Information
First, start by giving your business information like business structure. You will get the option in the application form and choose the best business option representing your business the most. Try to be more specific with the option so the authority can identify what types of business you are doing. Along with this information, try to write the year you started this business.
- Business Address And Name
Here you have to give your business legal name and trade name if you have one. If the trade name is different from the legal name, both the names will be shown in the invoices for better recognition. And your address, write the exact address in the application form, they will visit the address and will find out whether you have given the correct information or not.
- Business Identification Number
Identification numbers like Employer Identification Number (EIN), Taxpayer Identification Number (TIN), Social Security Number (SSN), also need to be written down. Where to get these identification numbers? Check your previous tax returns documents; you will find this info there.
Apart from the above information, you have to add some more information like business phone number, email address, owner name, primary contact number, etc., and make sure all the information you provide on the PPP loan application is correct. Because they will verify this info, and after that, if they find you eligible, they will approve your loan.
You have to add your employee number here; if you have more than one location, mention that and make sure each location should have not more than 500 employees. Suppose your business is affiliated with other businesses. In that case, you have to mention that if any other business or a third party has control over your business, you have to mention that too.
- Loan Purpose
The purpose of PPP is mainly to protect paychecks. If you don’t select the “payroll costs” in the provided section, the authority will directly deny your PPP loan without giving any consideration. So be careful here; make sure you select the Payroll costs option.
In this section, you have to provide the list of the shareholders of your business who own more than 20% of your business. If you have more than one shareholder to mention, make a separate sheet, write down their name, address, share percentage, and attach the sheet.
- Not Eligible
In the question section of yes and no, if your answer is for question number 1, 2, 5, or 6, any of them, then you will be considered ineligible for this PPP loan.
- Prove You Have Applied With Honest Intentions
On page number three, you will find ten statements. Each statement you have to sign and certify you are applying for the PPP loan by having honest intentions in mind. You will use this money to improve your business. If one of the signs proved untrue, you will have to pay penalties and be jailed because of this act.
I have all the information you had to know to apply for new PPP loans. Along with other information, I have told you how to apply for a new PPP loan. I hope now you will be able to apply for a PPP loan without making any mistakes.