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Checklist for SBA Loan Applications

By continuing to read, you agree to this statement:  The information in this checklist is informational and does not create an attorney-client relationship.  I offer no guarantee that you will be approved for a loan.  Each bank has different requirements. 

I also want to give credit to Linda Fang at Banyan Counsel PLLC who contacted banks and sent me information to help with this checklist.  I work with Linda frequently and she's a great business and employment attorney.

Note there are two loan programs you can apply for (Payment Protection Program and Economic Injury Disaster Loan).  The only limitation is that you can't use the EIDL funds for the same purpose as the PPP loan (i.e., can't use EIDL on payroll, utilities, etc.).

A. PAYMENT PROTECTION PROGRAM ("PPP") (the loan that gets forgiven if you maintain your payroll and number of employees:  Download the Fact Sheet on the PPP

 

STEP 1: Check this SBA website for the eligible PPP lenders and their contact info.  The banks within my zip code (98104) are:

 

First Sound Bank

HomeStreet Bank

Washington Federal Bank, NA

Seattle Economic Development Fund

BECU

 

-Linda has done a lot of research and leg work into researching the process.  She discovered (and another CPA Charlie Meyerson confirmed) that you should also contact your own bank to see if it is accepting PPP applications.  It’s much easier to work with your own bank that you have a relationship with.  

 

-Linda also mentioned that most of the lenders will only accept loan applications from clients who already have accounts at the bank.  One exception appears to be First Sound Bank.  The contact info for First Sound Bank is provided in the SBA list of eligible lenders.

 

STEP 2: I made an appointment with BECU to open a business bank account.  I’ve been meaning to switch anyways but if this helps me get in line, then I’ll do it now.  If you want to open a BECU account, click here.

 

If you need to open a business account at one of the other eligible banks, then you’ll likely need to make an appointment.

 

STEP 3:  Complete the Paycheck Protection Program Application Form.

 

- I will be typing my answers into a word document so that I can have been available to me for future applications.  Also, the bank might need this info again so it’s good to have it ready.  NOTE: USE A SECURE METHOD TO STORE THIS INFORMATION SINCE IT WILL CONTAIN PRIVATE INFO SUCH AS YOUR SSN.  I attached a word version of a questionnaire you can use.

 

STEP 4: Gather the following corporate documents (in hardcopy and PDF format):

 

-If you are a WA Corporation or Professional Service Corporation:

 

1. WA State Secretary of State Initial Report (free to download on the WA Secretary of State’s website – see directions below on how to download)

 

2. Articles of Incorporation (free to download on the WA Secretary of State’s website – see directions below on how to download)

 

3. Bylaws (these are not filed with the state.  You just need to have a standard set of bylaws.  If you need a set, let me know I can send you a discounted quote for a flat fee)

 

4. Any licenses and permits required by local and or state for operation of the business (your business license – see directions below on how to print proof of a business license)

 

5. EIN from IRS (I don’t think you need the actual IRS EIN letter.  You just need the EIN but get the letter if you can find it)

 

6. Any amendments or corporate minutes or resolutions which change any of the information in the Articles or Bylaws (e.g. appoint new directors, etc.)

 

-If you are an WA LLC or PLLC:

 

1. WA State Secretary of State Certificate of Formation or Initial Report (free to download on the WA Secretary of State’s website – see directions below on how to download).  Note, the bank might ask you for “Articles of Organization”.  In WA, LLCs are not required to have “Articles of Organization”.  The Certificate of Formation is it.

 

2.  LLC Company Agreement or LLC Operating Agreement (Not filed with the state.  If you need an LLC Agreement, let me know I can send you a discounted quote for a flat fee)

-Also include amendments.

 

3. Any licenses and permits required by local and or state for operation of the business (your business license – see directions below on how to print proof of a business license)

 

4. EIN from IRS (I don’t think you need the actual IRS EIN letter.  You just need the EIN but get the letter if you can find it).  The exception is if you use your SSN.

 

 -For non-profit corporations, here’s how you will access your documents:

 

-How to download your corporate or LLC documents from the WA Secretary of State

--> Click here to go to the WA Secretary of State 

-->Click on “Business Search” and a new window will appear

-->Ignore the Customer Login boxes

-->Look for “Corporation Search”

-->Enter your Nonprofit corporation name (alternatively you can search by your UBI)

-->Select “Search”

-->Click on your Nonprofit corporation name

-->A window titled “Business Information” should open with your entity’s address and other info:

-->At the bottom, click on “Filing History”

-->A list of entries should appear

-->Find “Articles of Incorporation” (corporation)

-->Download your document

The bylaws are not filed with the State. If you need Bylaws, contact Communities Rise to see if you can get free legal assistance. 

 

-For nonprofits, I would put the Executive Director or President as the “Owner” (non-profits don’t have owners) but that’s what I would put for now in “Applicant Ownership”.  The bank will likely ask about your board.

  

-How to download your corporate or LLC documents from the WA Secretary of State

--> Click here to go to the WA Secretary of State​ 

-->Click on “Business Search” and a new window will appear

-->Ignore the Customer Login boxes

-->Look for “Corporation Search”

-->Enter your Corporation or LLC name (alternatively you can search by your UBI)

-->Select “Search”

-->Click on your Corporation or LLC name

--> A window titled “Business Information” should open with your entity’s address and other info:

-->At the bottom, click on “Filing History”

-->A list of entries should appear

-->Find “Articles of Incorporation” (corporation), “Certificate of Formation” (LLC), and “Initial Report” and select “View Documents”.

--> Download your document

 

-If you can’t find or access your business license, then you can get proof of one here:

-->Go to: https://secure.dor.wa.gov/gteunauth/_/#2

-->Find and click on “Business Lookup” (third from the bottom)

-->Enter your business name or UBI and select Search

-->Your business name should appear

-->Click on it

-->Print the screen which shows a record of your business license (print to PDF as well)

 

STEP 5: Gather additional documents that the bank will likely request (bank might ask for more info):

 

1. 2019 Payroll — including last 12 months of payroll

 

2. 2019 Employees — 1099's for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099's for services)

 

3. Healthcare costs — all health insurance premiums paid by the business owner under a group health plan.

 

4. Retirement — your company retirement plan funding paid for by the company

 

5. 2020 – any documentation to prove your business is active in 2020

 

6. Mortgage Statement – If your company has a mortgage statement and is using the loan for P+I payments please send your mortgage statement with interest expense.

STEP 6: Once you find a lender you can apply to, submit your application with required documentation. 

 

B. ECONOMIC INJURY DISASTER LOANS AND LOAN ADVANCE (THE LOAN ADVANCE/GRANT HERE IS KEY!)

 

I believe landlords and perhaps real estate developers are eligible for this loan.

 

STEP 1:  Click on this link to apply online via the SBA.

STEP 2:  APPLY FOR THE $10,000 GRANT WHICH YOU CAN STILL GET EVEN IF YOU GET DENIED FOR THE LOAN.

-The $10,000 advance/grant will usually be deposited within 3 days you submit the application. However, the amount forgiven under a PPP loan will be decreased by the $10,000 grant.

  

When you get the “Additional Information” Section, please make sure you select the checkbox marked “I would like to be considered for an advance of up to $10,000.”

 

There are other local programs or perhaps state programs that might come out.  CA announced grants and sales tax relief for its small businesses.  Hopefully we get that here in WA!

 

Good luck to you all with the applications.

 
 
 

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