What can you do right now as a small businesses owner? Important tips and actions to prepare your business.
The Small Business Loan Fund is not unlimited. The demand for funds will exceed the supply so act now.
- ASAP – Contact your current lender to determine if they are an SBA-approved lender and can provide assistance. Ask your lender to send you their documents that you need to complete to receive the loan. Remember, this is first-come, first-serve.
- VERY IMPORTANT – Gather all payroll documents – 941s for the past 4 quarters, 2019 FORM 940, payroll summary reports (for each pay period) for the last 3 months, a listing of all employees: what their annual salaries are and those employees that make over $100,000, and overall payroll costs for the past 12 months. This will be used to calculate the loan available to you.
- VERY IMPORTANT – To help your lender and to speed up the process, you should calculate the average monthly payroll cost for all your employees for the past 12 months. The average payroll cost is capped at $100,000 per employee.
- health care costs – all insurance premiums paid by the business owner under a group health plan
- retirement – your company retirement plan funding paid for by the company.
- 1099s – as you gather the 1099s, you don’t need to include service providers.
- FYI – “payroll costs” are defined as the sum of – make sure you factor these into your calculations:
- salary, wage, commission or similar compensation
- payment of cash tip or equivalent
- payment for vacation, parental, family, medical or sick leave,
- allowance for dismissal or separation,
- payment requirement for the provisions of group health care benefits including insurance premiums,
- payment of any retirement benefit, and
- payment of state or local tax assessed on the compensation of employees
- PAYROLL COSTS DO NOT INCLUDE – those whose principal place of residence is outside of the United State, compensation of an individual employee’s salary in excess of $100,000, qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (FFCRA), Qualified Family leave wages for which a credit is allowed under section 7003 of the FFCRA
- a monthly income statement (profit/loss) for the past 12 months
- Complete the SBA 7(a) application
- Articles of Incorporation/Organization
- All owners Driver’s Licenses
- Break down of payroll benefits (vacation, allowance for dismissal, group, group healthcare benefits, retirement benefits, etc.)
- Bank statements to support payroll disbursements
- 1099s (if you are an independent contractor)
- Most recent Mortgage Statement or Rent Statement (Lease)
- Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water
Additional Resources:
6 Things Small Businesses Should Do Now, PDF
Six things you can do now as a business owner to consolidate, prepare, and secure your business in uncertain times.
Small Business Administration (SBA) Loan Assistance Info, PDF
Overview of the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program(CARES Act).
See our list of lending options available to start-ups and small businesses.