When applying for PPP, you'll be required to submit payroll documents so we can determine your average monthly payroll costs. Follow these guidelines to ensure you submit the correct documentation (described below).
First Draws
You’re required to submit payroll information that supports the average monthly payroll costs you use in your application. You’ll need to provide documents that cover your payroll reference period.
For small businesses with employees:
We recommend you submit the following:
- Quarterly 941 forms (for all quarters of your payroll reference period), yearly 940 or 944 forms, 1120 form, 1120-S form, 1065 form, or payroll documentation with a corresponding letter from your payroll processor
For self-employed individuals, sole proprietors, and independent contractors without employees:
We recommend you submit the following:
- Form 1040 - Schedule C
- You can submit draft 2020 Schedule Cs if you fill out the required fields.
- You cannot submit draft 2019 Schedule Cs
- At this time, BlueVine cannot support loans for Farmers and Ranchers who report their income on a Schedule F form
Second Draws
- Second Draw applicants will need to provide the same documents as First Draw applicants if you did not previously provide them
- If you provided BlueVine with less than one year's worth of payroll tax documents, you are now required to submit additional documentation that covers at least four quarters or one year
- If you did not receive your First Draw through BlueVine or your payroll expenses and requested loan amount has changed, you will be required to resubmit payroll documents
- If you are required to submit new payroll documents, use the same guidelines outlined above for First Draw documents
If your Second Draw request is over $150K, you will also be required to submit documents at the time of your application that demonstrates at least a 25% reduction in revenue (based on gross receipts) compared to the same time period in 2019, which may include tax forms, quarterly financial statements, or bank statements1
Applicable Reference Period for Calculating Payroll
Unless specified, you should submit documents covering the payroll period you want to use in your loan application:
- Small business applicants generally may use the calendar year 2019, the calendar year 2020, or the one-year period before their loan is made as their preferred payroll period
- Self-employed individuals, sole proprietors, and independent contractors may use the calendar year 2019 or 2020. They may not use the one-year period before their loan is made
- Seasonal borrowers may use any 12-week period between February 15, 2019 and February 15, 2020
1 For borrowers with loans of $150,000 or less, these documents will not be required at the time of application. These or additional documents will be required either before or during your loan forgiveness application.
The information, opinions, and advice in this blog post are provided for educational purposes only and do not necessarily state or reflect those of BlueVine and/or its partners, including The Bancorp Bank and Celtic Bank. Neither BlueVine nor its partners are responsible for the accuracy of any content provided by author(s) or contributor(s). For information about BlueVine products and services, please visit the BlueVine FAQ page. For information about the Paycheck Protection Program, please visit the SBA’s page.