There are many PPP rules and regulations that you as a borrower should understand before you begin the PPP online application process. Providing complete and appropriate documentation will make the PPP online application process more efficient. As a reminder, the calculation of the requested loan amount and supplying proper supporting information is your responsibility as the applicant. We’re committed to providing you with all the necessary resources for a streamlined PPP application approval and funding process.
As you read through the materials, here are some important definitions to keep in mind:
- Round One: The 2020 PPP program established under the CARES Act
- Round Two: The 2021 PPP program established under the Economic Aid Act
- First Draw: A first-time PPP loan
- Second Draw: A second PPP loan, after receiving a first PPP loan in Round One
For Second Draw applicants only: While some documentation will carry over from your Round One PPP loan, you should provide complete application documentation for the Second Draw PPP loan. PPP rules and regulations make different loan amount calculations available, differing certifications, and potential changes within business ownership or operations that could create differences. Full and complete documentation will ensure compliance with all program requirements.
Please be mindful that Pursuit is not able to answer questions specific to your unique tax, accounting, or legal situation. We are providing these resources for informational purposes and urge you to seek guidance from your own tax, accounting, and legal advisors.
Who should submit the PPP loan application?
An individual with authority to sign on behalf of the company should be the primary contact and submit to the online application to Pursuit. If additional individuals, such as your company’s accountant or an employee who is not an authorized signer, need access to the PPP application, the primary contact can add them after registering.
The primary contact will be asked to sign on behalf of the company. We must have valid photo identification on file for this individual to send closing documents.
What documents are needed to apply online for PPP?
- Loan Amount Payroll Justification: You must provide support for your average monthly payroll calculation. Clear documentation of the calculation will assist in the swift processing of your application. Required documentation depends on your entity type. Please visit our guide on how to calculate loan amounts for specific details on what documents are needed.
- Business Operating on February 15, 2020: You must provide support for being in operation and having employees and payroll costs on February 15, 2020. This could include payroll records, tax documents, or account statements showing earnings and expenses for the period including February 15, 2020.
- Revenue Reduction of 25%: If you’re applying for a Second Draw loan, you will be required to supply documents that prove that your business experienced a revenue reduction of 25% or greater in 2020 relative to 2019. These documents may include relevant tax forms, including annual tax forms or quarterly financial statements or bank statements. It is your responsibility to provide clear documentation and support of the 25% or greater decline in revenues. Please review our guide on how to calculate the revenue reduction for specific details on this calculation.
- Number of Employees: You must provide support for the number of employees you have on payroll. This will ensure that your business is below the size threshold of 300 employees (or 500 employees if a First Draw applicant).
- For Second Draw applicants who are applying to receive a 3.5x payroll maximum loan amount calculation, you must also provide tax documents showing a NAICS code beginning with 72. Please consult with your accountant or tax professional to ensure your most recent tax filings include the proper designation and submit the form with your application.
Other Documents Needed:
- First Draw SBA Loan Number: You will need your SBA Loan Number from your first PPP loan when applying for a Second Draw PPP loan. This is a ten-digit, all numerical number that was included on your closing documents for the first loan. Please have this number handy when applying for your Second Draw loan.
- Driver’s License, Passport, or other Government Issued Photo ID: You will need to submit a copy of government-issued photo identification for all owners of 20% or more of the applicant business.
- Voided Check: You will need to submit a copy of a voided check for your business. This account will be where loan funds are deposited at funding. The bank account name must match the name of the business (or in the case of a sole proprietorship, independent contractor, or self-employed individual, the check must match the owner’s name).
- Entity Documents: To support the closing and funding process, we recommend providing entity formation documents to verify the existence of your business. This could include Articles of Incorporation, Certificate of Formation, or in the case of a sole proprietorship, DBA Registration.
Please remember that you do not need to fill out the SBA application form – our online application will guide you through the preparation of this form.