Dylan from SureFront walks through PPP loan applications step by step. Up to 100% of loan amounts used for payroll can be forgiven, plus 25% for other qualified expenses. You'll need SBA Form 2483, proof of beneficial ownership, payroll records, and tax documents. Apply through one bank only, preferably your regular one.
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Hey everyone, this is Dylan with SureFront with another video created to try to help you guys get through this crisis as small business owners. If you haven't checked out our previous one, it's the SBA loan application video that shows you how to get through that application quickly and how to get that $10,000 grant. This one is for the more unknown Paycheck Protection Program loan. Not a lot of information out there about it. So we're going to go in and describe PPP to you so you can get a better idea of how to apply. You're applying through your bank and then sending— they're sending that application to the SBA themselves. So what the PPP program is, it's $350 billion that Congress has set aside to help small businesses cover payroll during this time. But what a lot of people don't know is that A lot of that loan can also be used to cover other expenses like utilities, mortgage costs, rent costs, and other things. It's just that up to 25% of that loan is forgivable for those costs, whereas all of it is possibly forgivable when it's used for payroll, which is a pretty incredible program. And we're all quite fortunate that the government has gotten themselves together to do this. So let's walk through that. We've created this Google document since there's not any forms out there the government has put out there to fill out yet. And we've organized all of it right here and we're gonna walk you through step by step what you have to do. So first thing to note is that your bank, whether that be Bank of America or EastWest Bank or, you know, Wells Fargo, is supposed to have something on their website, uh, either tomorrow or the next day where they'll walk you through, uh, a couple steps to help you apply. So we're trying to get you a head start on that by putting it up now. Um, and so the first thing is that, uh, you'll see in step 1 here, do not apply with multiple banks because SBA will reject your application. So just do this through one bank. Do this through the bank that you typically bank through. Uh, number 2 is, uh, you wanna submit basic information on the inquiry form that your bank has posted up. In this case, uh, we're gonna look at our bank, which is EastWest Bank, and walk through the inquiry form that they've already put up on their website, and then talk about the other forms that they want you to fill out as well. So, uh, depends what your bank is, but for us, we're gonna go over to the form that they have on their website. And they've also generously put up a monthly payroll worksheet that helps you figure out what your payroll is exactly. You're gonna fill out this form, hit submit, and then we're gonna talk about the other forms you have to do as well. The important thing to know too is what counts as payroll costs. So salary rate, wage, commission, and tips Everything that's included in the payroll is actually capped at $100,000 per employee. So that's, that's important to note as well. But there's other things that are included in that. So payments, as it says here, vacation, parental, family, medical, and sick leave. You have severance costs that could be included in that as well if you've had to issue those this year. Healthcare costs as well, very important. You can include those in payroll costs, retirement benefits. If you happen to have a 401(k) that you're paying for your employees, and then also state and local assess taxes that have been assessed. And then also if you're a sole proprietor or independent contractor, then you have wages, commissions, incomes, and net earnings from self-employment also capped at $100,000 per employee, which would be yourself in that case. So let's just go ahead and quickly fill this out. So we'll just put Your business here, primary contact, that happens to be yourself. Email address, you know, I'll switch to a pseudonym now, and phone number, that's the right amount of digits there, and let's just go ahead and say yes. So your business legal name, not your DBA, but let's just say it's the same one here. Your address, we happen to be in Los Angeles. So just, you know, fill out this general information. This is— say you're in wholesale trade. This is where you're gonna pick what kind of legal structure that you have. So you, you don't know this offhand, you can find this on your tax forms. So in our case, we are gonna put down LLC. And you're gonna be using a tax ID number here unless you're a sole proprietorship. So that's your EIN number. And it's important to note the structure on that. Let's make sure I got that right. 4 digits there, 7, okay. And let's say estimated monthly payroll is— let's say your monthly payroll is $100,000 and let's say you have 20 employees. So they've made it very simple here. Let's hope that other banks are doing this as well. You just click submit after that. And then you have a few other forms that you have to take note of. So filling this out kind of gets you in your bank's queue. So that gets you ahead of the line, or rather in line, and starts you down this application process. So do this right away. Hit submit, do this right away. And then make sure you have these other forms and documents ready when the bank comes back to you and says, okay, we're starting your approval process now. We need some of these other forms. So it's not 100% known what the government's gonna be asking for, but we know that at least they're probably asking for the SBA Application Form 2483, and we have a link to this Google Doc, by the way, in our video down below, and then we'll also have a link to all of these docs down below as well. So if you click on that, that is the Form 2483. This is the Small Business Paycheck Protection Program Application Form. And this has a lot of redundancies to that previous form, but it's important to make sure that you have this filled out as well. There is also the, uh, Certificate of Beneficial Ownership form as well. Uh, we happen to put a link to our bank's form. Your bank will have a separate form for this. This shows the percentage ownership in your company. So whoever owns 20% or more of your company would put their information down here as well. So each one of those owners here, as you can see, that own 20% or more. And then we'll go back to that Google Doc, and then final one that we have listed here is the payroll worksheet. So this will get you to exactly what that payroll is. Finding out what that monthly payroll is. Because remember, you're counting in other costs other than simply the payroll that you're paying your employees every month. So you're including the 401(k), the healthcare costs, etc., in there. So make sure you have all that. So fill out all these forms. We have them all listed below the video. We have links to all those. And then some other documents that the government might be asking for, but we're not sure yet, Could be, say, IRS Forms 941 and 940. There could be forms for— that talk about payroll reports for PTO or sick pay. Ones that talk about health premiums, documentation for health premiums. And you could also have ones that talk about retirement plan funding preceding 12 months. So this will give you a head start on everything. This will make sure that you're right away out the gate applying for the PPP loans. So please make sure you fill all these out, get yourself a head start on this whole thing, and make sure to subscribe to our channel as well because we'll be releasing videos as more information comes out about this and hopefully help you guys out a bit. I really appreciate it. Thank you so much, and stay safe out there.
