Documentation Guidance for PPP Loan Applications
ENB is now accepting applications for Paycheck Protection Program (PPP) loans offered through the U.S. Small Business Association (SBA). As we guide businesses through the application process, we have received a few frequently asked questions related to documentation of payroll and revenue. Please find them here. We hope they are helpful as your consider and prepare to apply.
How Do I Document Payroll?
There is no payroll documentation required if you meet all of the following criteria:
- Previously applied for a PPP Loan with ENB
- Utilizing 2019 data for your average payroll calculation
- Borrowing less than $150,000
If this is your first PPP loan application or you are submitting the application using 2020 average monthly payroll, documentation is needed to support this payroll figure. Acceptable documentation for companies with employees includes any of the following:
- An annual payroll report from your payroll provider
- IRS form 941 for all quarterly federal tax returns
- IRS form 940 for annual federal unemployment tax return
- Internal payroll records
For self-employed individuals and sole proprietors, a 2019 or 2020 IRS form Schedule C may be submitted. A 2020 Schedule C does not yet have to be filed with the IRS in order to serve as payroll documentation.
ENB has created a spreadsheet to assist in your payroll calculations. Please complete and submit with your application. Reminder: All annualized payroll costs in excess of $100,000 per employee should be excluded from the calculation.
If you are including payroll-related costs in your loan application, you will need to provide documentation. For example, if counting healthcare premiums, you’ll need to provide a healthcare premium statement.
How Do I Document Revenue?
To qualify for a second PPP loan, aka Second Draw Loan, borrowers must show a 25% annual reduction in gross receipts between 2019 and 2020. Same quarter reduction comparisons for 2019 vs. 2020 may also be used. Acceptable documentation verifying a reduction in revenue includes annual tax forms, quarterly financial statements or bank statements.
How Do I Apply?
Applications can be submitted using our online application. To begin, you will need to provide a business EIN and SSN for an authorized representative of your business. An authorized representative is defined as the signer on your ENB bank account(s). If you require assistance, please contact the ENB PPP team for support at (717) 721-5205.
You can also apply in person. Contact your relationship manager or call (717) 721-5205 to schedule an application appointment at your business or one of our Community Banking Offices. You’re also welcome to schedule online. Please indicate the location (whether it be our office or yours) and time you’d prefer. We will then follow up and confirm.Back to Blog >