A common pitfall: being unprepared
In order to have the best chance of getting a PPP loan, small businesses need to do their homework. A lack of preparation is one of the most common mistakes that owners made when applying for PPP loans during the first round, says Rob Scott, Great Lakes regional administrator for the SBA.
If you don’t have all your paperwork together and up-to-date when you file — including key documents like your latest tax records and average monthly payroll costs — then you may have your loan application rejected or delayed, Scott says. “Any delay that a business owner has in getting their information to their lender so that their lender can turn around and put it into the SBA system is a delay you don’t want.”
To file for a PPP loan, you’ll typically need to have the following information and documents:
Business name, address and contact information
Company formation documents or details of business’s legal organization, structure and ownership
2019 tax returns, as well as previous two years if available
Payroll reports
Mortgage or rent documents
Documentation of utility expenses
Proof your business is active and in good standing
Documentation of how the coronavirus pandemic has negatively impacted your business
In addition to having the paperwork prepared and ready to go, small business owners should make sure their business credit file is up to date and accurate, says Joe Pascaretta, a small busines