US Bank releases instructions re PPP Funding, including some doc requirements (final paragraph)
We expect that all banks will issue similar instructions, so we provide this to you as an alert of what to expect from your financial institution or the FI you used for your First PPP Draw. If you need assistance with PPP funding applications, calculations to determine if you meet the 25% income reduction requirement, or for documentation, please contact our office. US Bank: “We intend to open our Paycheck Protection Program (PPP) loan application for both First Draw and Second Draw PPP loans on Tuesday, January 19. The Small Business Administration¹ (SBA) has indicated that we may begin processing applications at that time. The link to access the application will be posted on usbank.com/ppp and sent directly to your email on Tuesday. In the meantime, there are a few things we would like to share:
Eligibility requirementsFirst-time PPP borrowers: Businesses who did not previously receive a PPP loan will be eligible to apply for a First Draw loan of up to $10 million, using similar criteria from the initial round:
Businesses and entities in operation on February 15, 2020.
Small businesses, 501(c)(3) nonprofits, 501(c)(19) veterans’ organizations or tribal business concerns that have fewer than 500 employees or otherwise meet the SBA size standard.
Businesses in the accommodation and food service sector that employ 500 or fewer employees per physical location.
Entities such as housing cooperatives, tax-exempt “business league” organizations under Internal Revenue Code section 501(c)(6), news organizations, and destination marketing organizations are now eligible, subject to additional requirements.
PPP Second Draw loans: Eligible businesses, similar to those open to First Draw loans, will be able to apply for a Second Draw PPP loan of up to $2 million, provided they:
Have used or will use the full amount for their first PPP loan.
Were in operation on February 15, 2020 and employ 300 or fewer employees.
Can demonstrate at least a 25% reduction in gross receipts in any quarter in 2020 when compared against certain past quarterly results.
How can I apply?A full application, including required documentation, will be accepted from eligible businesses through our online portal. This digital process will guide you through the application. As a reminder, there is no need to fill out a paper application for First or Second Draw loans, and neither our branch nor call centers will be able to accept or process applications. Depending on whether you are applying for a First Draw loan or a Second Draw loan, you may need to provide some or all of the information listed below. A full list of required documents will be available on our website in the coming days.
Information for all individuals with at least 20% ownership (e.g., SSN and separate email addresses).
Documentation of payroll expenses (e.g., salaries, wages, tips and compensation, health insurance premiums, retirement contributions, paid state and local taxes).
Completed 2019 or 2020 tax forms for your business.
Documentation that you were operational on February 15, 2020.
Documentation to show a 25% reduction in gross receipts for a Second Draw PPP loan, if applicable.”