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How do You Apply for the Paycheck Protection Program?

March 31, 2020

The CARES Act offers a Paycheck Protection Program (PPP) but many businesses are not sure how to apply. We explore here.

*Editor's Note- More information on the Paycheck Protection Program application process has been released since this blog was written. Please scroll down to the end of this blog for more information.

With the passage of the CARES Act, many small businesses are wondering how they apply for the Paycheck Protection Program (PPP) loan given the loan forgiveness feature of the program.

What is the PPP?

As discussed in our earlier blog, the PPP is an SBA loan that will be available through the SBA’s Preferred Lender Network. SBA Preferred Lenders are delegated loan approval as well as closing and most servicing and liquidation authority by the SBA, enabling them to make loan decisions more rapidly. Most likely the bank or credit union that you currently use is an SBA Preferred Lender.

Currently, SBA Preferred Lenders are waiting for official guidelines for making and approving Paycheck Protection Program Loans. We suggest that you contact your primary banking relationship officer and let them know that you will be interested in applying for a PPP and to contact them once the application process opens up.

In the meantime, you can start preparing for the loan process by gathering the following information that will most likely be required for your application. We have reached out to our friends in the banking community and these are the commonly referenced documents that applicants should have ready to go for the PPP loans.

  • Copies of the last 18 months of quarterly and annual federal payroll filings. This includes quarterly 941s, annual 940, W-3, W-2s, and 1099 filings for independent contractors.
  • Support for employer paid health insurance and retirement plan expenses paid for the last 12 months.
  • Prepared calculation of the average monthly payroll for the last 12 months
    • Note this calculation should cap EE’s making over $100K, to annual salary of $100K.
  • Be sure to have monthly payroll reports ready to support this calculation.
  • Documentation of the following expenses expected to be incurred for the two months period after the loan is disbursed to you
    • Payroll and Benefit Costs
  • Rent payments
  • Mortgage interest (interest only, do not include principal)
  • Expected utility payments for electricity, gas, water, telephone, cable, etc.)
  • Note – For rent/mortgage interest/utilities mentioned above, those expenses need to be covered by an agreement in place prior to February 15, 2020.

By organizing the information above ahead of time, you will be well prepared to apply for the paycheck protection program when the application process begins. We suggest having these documents scanned and organized ready for upload to your bank.

Navigating through all of the information and programs available to impacted businesses may be overwhelming. KLR advisors are available to assist you navigate the best path forward during this unprecedented crisis. With a completely remote workforce our advisors are always available.

We’re always here to help; visit our Coronavirus Resource Center.


The Treasury Department has started to release more information and clarification on the Paycheck Protection Program under the CARES Act.

Some highlights of the information released so far:

  • Interest on the loans has been set at 1% with a two year maturity.
  • Loan forgiveness amounts are expected to maintain a maximum of 25% of non-payroll costs.
  • Banks and credit unions will begin accepting applications on April 3, 2020 for small businesses and sole proprietorships. Independent contractors and self-employed individuals can apply beginning April 10, 2020.

Please go to for more information.

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