This is your last chance for a PPP loan. Here’s how to apply

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A billboard shows an advertisement for PPP Lending Aid in the South Center on April 15, 2021 (James Bernal for Reveal / LA Times)

A billboard in South Los Angeles advertises assistance in applying for a PPP loan. (James Bernal for Reveal / Los Angeles Times)

Small business owners seeking a government payroll protection loan have little time left.

Applications for the latest round of PPP loans will only be accepted until Monday or until the remaining funds are spent, whichever comes first.

Most of the money has already gone. As of Friday, of the $ 800 billion allocated to the program, only about $ 3 billion remained, according to congressional staff. The Small Business Administration approved over 11 million loans during the program.

In these past few days, the SBA has been offering PPP loans only through participating community financial institutions.

Here’s what you need to know if you want to apply.

Apply Now

Even though the deadline is Monday, some lenders have stopped accepting applications to give themselves time to process those already received. Potential borrowers can find participating lenders through SBA website

“You want to give any organization as much time as possible right now to process your request,” O.K. said. Isaac, Senior Vice President and Chief Credit Officer, Pacific Coast Regional Corp., a center for small business development and community financial development. an institution in the Koreatown Los Angeles area that stopped accepting loan applications on Friday. “You must give the lender the opportunity to review your materials, approve your loan request internally, and then submit it to the SBA for approval.”

Collect documents

Potential borrowers must collect all the documentation required to complete the application. For independent contractors and sole proprietors, Isaac said, this includes IRS Schedule C tax form for 2019 or 2020. Companies that have employees must have their IRS Forms 940 and 941, as well as an internal summary payroll report, to show to the lender, he said.

Applicants should also have their bank account information ready in order to expedite the loan financing process if approved.

“Make sure the information you provide to the lender is accurate and true,” Isaac said. “You acknowledge this fact when you submit your application.”

Get help if you need it

Community Development Financial Institutions known as CDFIs and Small Business Development Centers are ready to help business owners who have questions about applying for a loan. Vermont Slauson Economic Development Corp., a CDFI based in South Los Angeles, helped business owners get through this process and ensured the sustainability of their accounting systems and new business models, ”said Delores A. Brown, financial advisor.

“The business model that supported them before the pandemic may not be the business model that will provide any kind of resilience in the future,” she said.

Vermont Slauson also directs clients to partner organizations that accept applications for PPP loans, she said.

Isaac said Pacific Coast Regional has also referred loan seekers to partner lenders and provided business owners with information on other financing programs available.

Keep records

“PPP loans are for forgiveness, so small business owners who have been approved for a loan should try to meet the criteria for forgiveness,” Isaac said. This means that PPP money is spent on eligible expenses and documents are kept to prove what the expenses were.

“Get ready today so you don’t have to worry about it at the end,” he said. “What I would hate the most are these small businesses … [to] must pay off a federally backed loan and end up in a position where they could default, “especially given these difficult financial times.

Times staff writer Dong Lee contributed to this report.

This story first appeared in Los angeles times

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