The SBA Paycheck Protection Program (PPP) is specifically designed to aid eligible small businesses with forgivable loans during the Coronavirus pandemic. The latest government stimulus package commits $284.5B to PPP and allows for second draws and simplified loan forgiveness.

This round of PPP lasts from when the SBA opens it up to March 31, 2021, and has two loan options available for eligible businesses: a First Draw for those who haven’t received a PPP loan and a Second Draw for those who already received a PPP loan.

BlueVine plans to help as many small businesses as possible with PPP applications in 2021, including Second Draw applicants that didn’t have their First Draw with us.

Certain supporting documentation is required to apply for a PPP loan. US Business Funding recommends these documents, which have a higher likelihood of going through our automated system. Documents should be read-only. Editable PDFs will not be accepted by US Business Funding .

First Draw applicants:

Small businesses with employees: Quarterly 941 forms (for all four quarters of your payroll reference period), yearly 940 or 944 form, 1120 form, 1065 K-1 form5 (preferred over 1065 form), 1120-S form, or payroll processor reports with a corresponding letter from the payroll processor
Self-employed individuals, sole proprietors, and independent contractors without employees: 2019 or 2020 1040 – Schedule C
For Second Draw applicants:

Small businesses with employees: Quarterly 941 forms (for all four quarters of your payroll reference period), yearly 940 or 944 form, 1120 form, 1065 K-1 form5 (preferred over 1065 form), 1120-S form, or payroll processor reports with a corresponding letter from the payroll processor
Self-employed individuals, sole proprietors, and independent contractors without employees: Form 1040 – Schedule C
If your loan request is over $150K, you will also be required to submit documents at the time of your application that demonstrates at least a 25% reduction in revenue (based on gross receipts) compared to the same time period in 2019, which may include tax forms, quarterly financial statements, or bank statements
Applicable Reference Period for Calculating Payroll

Unless specified, you should submit documents covering the payroll period you want to use in your loan application:

Small business applicants generally may use the calendar year 2019, the calendar year 2020, or the one-year period before their loan is made as their preferred payroll period
Self-employed individuals, sole proprietors, and independent contractors may use the calendar year 2019 or 2020. They may not use the one-year period before their loan is made
Seasonal borrowers may use any 12-week period between February 15, 2019 and February 15, 2020
Additional documentation may be required of all applicants:

Basic information about you and your business
Details of full-time employees and associated payroll costs
Details of all owners with greater than 20% ownership stakes
Proof of mortgage interest payments, rent payments, and utility bills
Bank statements
Small business owners without employees: apply with a social security number
Small business owners with employees: apply with an EIN or Tax ID

If you’re a First Draw PPP applicant, eligibility terms are similar to the initial program launched in 2020. U.S. small businesses in operation as of February 15, 2020, with fewer than 500 employees, including these now-eligible business types, can apply:

Housing cooperatives with no more than 300 employees
Certain broadcast and news organizations
“Destination marketing organizations” that generally don’t engage in lobbying and have fewer than 300 employees
If you’re a Second Draw PPP applicant, you must meet the following additional criteria and note that additional conditions may apply:

Have 300 or fewer employees2
Have used your entire First Draw PPP loan on PPP-eligible expenses
Demonstrate a 25% or greater reduction in revenue over a certain period
The following businesses are no longer eligible for a PPP loan:

Businesses that receive grants under the SBA’s new Shuttered Venue program
Companies traded on a public stock exchange
The President of the U.S., Vice President of the U.S., heads of government executive departments, members of Congress, and their spouses
Please refer to the SBA’s PPP webpage for complete information on eligibility criteria.

Small businesses that previously received a PPP loan may be eligible for a Second Draw. Generally, for small businesses to qualify for a Second Draw PPP loan, they must have been in operation on February 15, 2020, and:

Have fewer than 300 employees2
Have used their First Draw on PPP-eligible expenses
Demonstrate a 25% or greater reduction in revenue over a certain period
Additional conditions may apply, and various documentation is needed.

Yes, you will need to submit a new application and you may be required to provide additional information and documents.

Yes. Existing PPP borrowers are not limited to their original lender.

Yes, the new Paycheck Protection Program round includes loan forgiveness changes, including a simplified forgiveness process for borrowers with loans under $150,000 and expanded forgivable expenses. The SBA has recently released new guidance, and we’re working to translate this guidance into a more efficient and simpler forgiveness application for those that apply. US Business Funding is not currently accepting loan forgiveness applications.

Businesses that fall under NAICS Code 72 are eligible for 3.5x average monthly payroll on Second Draw. The only businesses that qualify for this are either:

Businesses that reported a business activity code starting with 72 on their most recent income tax filing, or
Businesses that left their business activity code blank on their most recent income tax filing. These businesses can use NAICS 72 if (1) that code is the most applicable one to their primary business activity and (2) they can substantiate their industry activity code with alternative documentation like permits or licenses that are unique to their sector and issued by local governments.