Hi everyone welcome to this video training on how to complete your loan
application for the PPP program which is the Paycheck Protection Program. How to
actually get your stimulus money from the federal government so that you can
through the Paycheck Protection Program pay your bills.- cover your payroll and
then get back on track. So I actually received an email from Bank of America
this was about 4 business days after I submitted the application for the
Paycheck Protection Program and in the email Bank of America basically says
here's what you need to do - log in to intralinks and upload the following
documents. So here's the important part I'm actually going to give you
guidelines that Bank of America gave me and I'm going to give you guidelines
from another bank that someone I know shared with me so you see that there are
similarities between these guidelines and I'm going to read out these
guidelines and more importantly I'm going to give you specifically the
documents you need to gather immediately because what you should do is you need
to start gathering these documents NOW - if you have them on your own
that's great or you need to reach out to your accountant now because your
accountant is probably going to need a day or two to get this information back
to you (maybe longer). but you need to have these documents because when you pass
these documents on to your bank your bank will use that information and pass
on that information to the Small Business Administration which will then
approve a designated amount in the Paycheck Protection Program and hand it to you
I'm going to share everything with you. I'm going to share exactly the
documents that I filled out I'm going to share the documents that another bank
asked one of their clients to fill out and again you'll see some commonalities
between that I'll show you specific forms and specifically layouts so you get a
sense of what to expect this will prepare you and start gathering that
documentation of even while you're waiting for your bank to formally accept
your application for processing. Getting the documents in line is going to save
you a ton of time okay so what does Bank of America say you need to go to a
website called intraLinks apparently they use something called intraLinks
which is an exchange to gather your documents Bank of America is working
with intraLinks exchange your bank probably has something similar and what
they say is we need number 1, payroll processor records, payroll processor
and they need that for the period ending the 15th of February 2020. Number two they
need payroll tax filings for 2019 so again payroll tax filings for 2019 now
for independent contractors they need form 1099 for 2019 and for sole
proprietors they need a profit and loss statement. Now they may need other
documentation as well and in my experience what I found is you want to
give them a copy of your driver's license as well and a copy of your
articles of incorporation as well so you want to make sure that's organized by
the way if some of you don't have a scanner for whatever reason you can't
get to the office I personally use an application called scanner Pro on my
iPhone that's called scanner Pro it's you know I don't get paid anything for
recommending scanner Pro I just love them and I use them when I'm on the go
and when I have to scan documents so that's what I would recommend but
definitely you would I would recommend that you use that application to scan
documents because you're going to need to scan your driver's license you're
going to probably need to scan your articles of incorporation as well if you
don't have them you should be able to go to your state website and then request
the articles of incorporation some sort of you know a digital download I don't
think that should be too difficult. So Bank of America basically wanted me to
log into intraLinks and upload the documents and they said we'll process
your application as soon as you upload and this is the interesting part
please do not deliver or send documents to a financial institution so again they
they're doing this through a Central Division and chances are your bank is
doing the same through a Central Division and you need to you need to
sort of follow the process in the emails as opposed to contact your local banker
I'm personally not sure how helpful that'll be I'm not saying it's not
helpful I just think in my experience I just went straight through the the
online processing department for the Paycheck protection program. Now here is
another set of guidelines from a different bank I and this was sent to me
by someone I know and this requires a completed and signed PPP borrower
application form which all the banks will ask you to fill out the addendum to
the borrower application despite the way is interesting because the Small
Business Administration keeps hiding addendums and keeps making changes
because the program was implemented so quickly and
that's fine you need to fill out the addendum I'll actually show you how that
looks like in just a second. The photocopy of identification driver's
license I talked about the payroll tax filings when you go down and the payroll
tax filings need to be quarterly Form 941 and Form 940 for 2019.
Form W3 for 2019 or if applicable k-1 statements for 2019 showing
beneficial ownership. How you use this information to calculate average monthly
payroll you need to talk to your accountant about that and they need some
sort of additional documentation for sole proprietors and independent
contractors so make sure you start to organize all of this all the information
that's on your screen and I had mentioned Articles of Incorporation
earlier and you'll see the articles of organization etc are also required by
this particular bank. Now the bank is gathering all this information so that
they can be in compliance with the Small Business Administration because all of
this information has to be passed on to the Small Business Administration in
fact this this particular lender specifically says please note that this
documentation is for determining the amount of your loan however if you
intend to use part of your loan for proceeds to pay mortgage interest loans
mortgage interest rent or utilities for a mortgage lease or utility service in
effect as of February 15, 2020 please also provide us with a copy of
such mortgage and lease so again you'll you'll be you'll need to comply with the
guidelines of the lender that you work with.
Talking specifically about the guidelines for the lender on your screen right now you
see a form that Bank of America is sending out to people who are trying to
this is actually the template that needs to be filled out for the Paycheck
protection program and in this template as you can see it says if you're an
organization with employees who file tax from 940 you must fill out this form so
talk to your accountant if you have any questions about the tax form 940 or you
can google it now as far as a payroll costs are concerned this is interesting
salaries wages Commission's vacation and sick pay. This is and less aggregate
amount for any employees whose principal residence is outside the US ok
Less any compensation paid to an employee in excess of $100,000 $100,000
cap is is well known by now and payment for the provision of employee benefits
including health care and retirement so let's say X amount was paid for an
employee's retirement plan or health plan you can actually add that here and
you can add state and local taxes as well and then you multiply that by two
and a half times and that cannot exceed $10 million and here's another
form which is the addendum and the addendum who goes into a lot more detail
now I want you to take a look at some of the key points here in the addendum the
key point here says the and if we look at let's say the fourth bullet point for
new businesses average monthly payroll may be calculated using the time period
from January 1st 2020 to February 29th 2020 excluding costs over $100,000 on an
annualized basis and in the next point they talk about how the economic injury
disaster loan if you've been approved for it which a lot of us apply for the
economic injury disaster loan at the same time at the PPP as far as I know so
that probably wouldn't apply but if you've been approved for an economic
injury disaster loan then that can be factored into the average monthly
payroll calculation as well and then there are a bunch of questions that you
need to answer you can see the check boxes right there you're regarding your
ownership if you've you know if you had any trouble in the last five years. Is
the US the principal place of residence for the for all the employees
listed in the payroll calculations because this is this is for jobs within
the US is the applicant of franchise and then you have to make a bunch of
certifications that you can see on the screen your certifications about the the
accuracy of the information and everything that we've provided and the
fact that loan forgiveness is will be provided for the sum of documented
payroll costs covered mortgage interest payments covered rent payments and
covered utilities not more than 25% of the forgiven amount may be for non
payroll costs. So that's all the information here and there is one more
document here from Bank of America which will lists the required documents that
actually needed to be uploaded to that intraLinks system
that I told you about and this says that the required documents are tax form 940
from 2019 Bank of America paycheck protection form loan loan amount
template which I actually shared with you in this training video so you saw it
Bank of America Paycheck Protection Program application addendum thanks to
some of the new stuff that the Small Business Administration wanted and Bank
of America scrambled to create an addendum which I also shared with you
and if you're a sole proprietor or self-employed and you don't file form
940 then you need 1040 schedules C, if file for 2019 or draft of 1040 Schedule
C for 2019 if not filed. Now one of the common questions is hey will they
accept this stuff for 2018 the answer is talk to your bank and your
bank will tell you whether that's ok or not because they need to check with the
Small Business Administration that part I'm sort of looking out for but it looks
like they need the information for 2019 not to mention the Bank of America
paycheck protection addendum as well and then they give you some information on
how you can upload the documents to the to the portal that they prefer. So in in
a nutshell this is all the information these all the documents that are needed
you've got to collect all the payroll documents you've got to collect you've
got to upload your a copy of your driver's license don't forget articles
of incorporation and go through the entire list of documents that I outlined
in this in this video watch this video a couple of times if you have to and make
notes so that you can be prepared for everything that needs to be submitted to
your lender so that your lender can then get approval from the Small Business
Administration to give you to give you that money and then set up that money
what I found is I've already talked to a couple of people who've been approved
for the PPP program and those funds have already been assigned by the lender and
that those funds have been set up in a separate account is what I've heard and
that account has to be used primarily for payrolls so the program is working
it may not be rolling out as fast as we want it to but the best thing you can do
is make sure you have all the documents lined up ok. So once again everybody this
was how to complete your SBA PPP loan application stimulus money for small business
owners in the Paycheck Protection Program the loan application as always a
lot of work goes into this training. I've actually shared information that I
receive from my bank. I've told you what I've gone through I hope this helped you
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notifications about what we're up to if you have any questions please submit
your question in the comments below I actually read every single comment so
I'm happy to chime in and and help if I can
or point you in the right direction but go ahead and click like click subscribe
I'm so appreciated that you took the time to do this today don't forget to
check out the other videos in the PPP loan application process, how to find a
lender, what to expect when you submit your documentation to when you submit
your application to a lender how long the process is likely to take and I can
tell you in the end that a lot of the money that's been allocated by Congress
is being expedited through to the lenders so again this all really comes
down to how the coordination works between the US Treasury Department the
Small Business Administration and your lender so I know that it can be
frustrating I feel your pain I understand but the wheels of the
government are in motion and I'm confident that as long as you stay
organized as long as you've got your documents in order as long as you have
everything lined up the moment you get that email or that request from your
lender saying upload your documents, you're good to go so start working on
the documentation now even if you don't have a lender you're looking for money
through PPP program even if you submitted your application to the lender
but are waiting to hear back from them better to have everything lined up. Thank
you so much for watching. Once again please click like, please click Subscribe
and I'm looking forward to seeing you in the next training, appreciate you. Thanks!