Five Tips for PPP Applicants
Published: 04/22/2020
Updated: 05/09/2022
Greater Phoenix Economic Council (GPEC) urging small businesses to prepare applications and supporting documents now
With the approval of $310 billion in additional funding for PPP, the Greater Phoenix Economic Council (GPEC) is urging every small firm in Arizona to prepare their applications and supporting documentation before funds become liquid.
Consistency and accuracy are vital in the application process. Errors, inaccuracies or lack of documentation can be the difference between receiving funds and being moved to the back of the queue.
Through detailed conversations with banks and lending institutions, GPEC developed ‘Five Tips’ to help small businesses navigate the application process. In addition, GPEC has set up a live Q&A chat feature on our website, and members of our team will be available to help answer questions in real-time.
Our goal is providing resources and information to assist applicants, and get every eligible small business to apply to give our region’s economy the best chance possible. This moment is pivotal.
Five Tips for Small Businesses Applying for Funding
1. Homework
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- Self-educate as much as possible. Bankers are processing applications 24/7 and are less accessible for Q&A
- GPEC has detailed and accurate resources available on its website to assist applicants through the process
- Use the chat feature in the bottom right corner of our website to ask any questions you have
- Self-educate as much as possible. Bankers are processing applications 24/7 and are less accessible for Q&A
2. Consistency
- Ensure that the entity on the PPP loan application is the same entity that has the banking relationship (ideally deposit, not line of credit)
- Name of entity should also match the name on supporting documents (or have documents demonstrating relationship)
- Err vs on more documentation than less
3. Accuracy
- Ensure right ownership percentage structure on PPP loan application
- Triple check calculations for qualifying payroll
- Requested loan amount and total EE headcount should be backed exactly by supporting documents (W2, 940, 941, etc. as relevant)
- Applicants who mistakenly request amounts for which they do not qualify can result in being moved to back of the queue
- Note: for S Corp, LLC: distributions do NOT qualify as payroll
4. Submitting the Application
- Some banks require all applicants to go through an online portal. If your bank does not, make sure you email (or submit via secure link that the bank provides) all documents in one package (sending materials piecemeal will slow down the process)
- Type applications (instead of handwriting) to ensure details are easy to read
- Don’t leave anything blank, and remember to initial in all the requested places
- Note: you are entitled to funding once you are entered into the SBA e-trans system and receive 10-digit approval
5. Timeliness
- Apply early if you haven’t applied yet
- We advise that SMBs apply through their primary bank first but if they would like to explore other institutions, there are still banks accepting new clients
- Visit GPEC’s ‘Financial Resources’ page for reference
- We advise that SMBs apply through their primary bank first but if they would like to explore other institutions, there are still banks accepting new clients
- Be responsive and accessible to the banker
- Bankers may have questions and delays in response from applicants can place the application in the back of queue