Payroll Protection Program funds are anticipated to go liquid on Monday, and GPEC is urging every small firm in Arizona to prepare their applications and supporting documentation before capital becomes available.
Consistency and accuracy are vital in the application process. Errors, inaccuracies or lack of documentation can be the difference between receiving funds and being moved to the back of the queue.
It’s estimated that only one out of six Arizona small businesses were awarded first round PPP funding, so GPEC’s goal is to get every eligible small business to apply to give our region’s economy the best chance possible. This moment is pivotal for many small businesses and our economy.
GPEC gathered feedback directly from banks related to the first round of applications and prepared “FIVE TIPS” for every small business owner applying now.
Homework: Self-educate as much as possible. Bankers are processing applications 24/7 and are less accessible for Q&A.
GPEC has detailed and accurate resources available on its website to assist applicants through the process: https://www.gpec.org/covid-19/financial-resources/
Consistency: Ensure that the entity on the PPP loan application is the same entity that has the banking relationship (ideally deposit, not line of credit).
The name of the entity should also match the name on supporting documents (or have documents demonstrating relationship).
Err on the side of more documentation rather than less.
Accuracy: Ensure that there is the right ownership percentage structure on PPP loan application. Triple check calculations for qualifying payroll.
The requested loan amount and total EE headcount should be backed exactly by supporting documents (W2, 940, 941, etc. as relevant). Applicants who mistakenly request amounts for which they do not qualify can result in being moved to back of the queue. (Note: for S Corp and LLC, distributions do not qualify as payroll.
Submitting the Application: Some banks require all applicants to go through an online portal. If your bank does not, make sure you email (or submit via secure link that the bank provides) all documents in one package. Sending materials piecemeal will slow down the process.
Type applications instead of writing by hand to ensure the details are easy to read.
Don’t leave anything blank, and remember to initial in all the requested places.
Note: You are entitled to funding once you are entered into the SBA e-trans system and receive 10-digit approval.
Timeliness: Apply early if you haven’t applied yet. We advise that SMBs apply through their primary bank first, but if they would like to explore other institutions, there are still banks accepting new clients. Visit GPEC’s “Financial Resources” page for reference.
Be responsive and accessible to the banker. Bankers may have questions, and delays in response from applicants can place the application in the back of queue.
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