Notice: In order to reach smaller businesses, the SBA will provide an exclusive access period to PPP loans for businesses with fewer than 20 employees, self-employed individuals and independent contractors from Wednesday, February 24 through Wednesday, March 10, 2021. During this time, we welcome all eligible businesses to apply for a PPP loan but we will only submit PPP loan applications to the SBA that meet the conditions of the SBA’s exclusive access period.
Before you apply for a PPP loan
Know the important PPP details
There are certain PPP application and program information you will need to know before you apply.
Determine your "First Draw" loan or "Second Draw" loan eligibility
The SBA provides 3 different paths to PPP financing. Know what loan option fits your situation
Gather your required documents & information
When you apply, you will need to upload certain documents and input information about your business. Learn what is required.
General PPP Information
Before you apply, please review the following important details which includes information on what you’ll need to complete the application. You may also want to consult a tax professional before you apply.
- To apply with us, you must have an active Bank of the West business checking account. If you do not have an active business checking account with us, visit your local Bank of the West branch or contact a relationship manager to open an account. Once your business checking account opening process is complete, return here to apply for a PPP loan
- The SBA requires that your business must have been in operation on February 15, 2020 and is not permanently closed to be eligible for a PPP loan
- Additional eligibility requirements exist depending on if you apply for a first draw PPP loan or a second draw PPP loan – see detail below
About PPP loans
PPP loans can help small businesses cover certain payroll and benefit costs and other non-payroll expenses during the pandemic. Businesses can qualify for PPP loan amounts up to $10 million for first draw loans. For second draw loans, businesses can qualify for amounts up to $2 million.
Loan funds can be used during a period of 8 to 24 weeks, known as the "covered period." After the covered period ends, loans may be fully forgiven if you meet the PPP forgiveness requirements. Learn more at the SBA.gov
Who is eligible?
Businesses with 500 or fewer employees (including affiliates) or meets the SBA's industry size standards or meets the SBA alternative size standards and have not previously received a PPP loan can apply for a first draw loan.
If seeking a second draw PPP loan, you generally must have 300 or fewer employees, and demonstrate at least a 25% reduction in quarterly gross revenue/receipts for any one quarter in 2020 relative to the same quarter in 2019 or for the full year 2020 relative to 2019. If you have an existing PPP loan, you also must have already used the full balance of that existing PPP loan.
Additional eligibility requirements apply for both types of PPP loans, depending on your situation. See details below.
To apply with us, you must have an active Bank of the West business checking account. If you do not have an active business checking account with us, visit your local Bank of the West branch or contact a relationship manager to open an account. Once your business checking account opening process is complete, return here to apply for a PPP loan. Also, per SBA rules, your business must have been in operation on February 15, 2020 and not be permanently closed to be eligible for a PPP loan.
What are eligible expenses?
The spirit of the PPP loan program is to keep employees on payroll by helping businesses cover certain payroll and benefit expenses. In addition, certain non-payroll expenses are eligible to help keep your business moving forward. Therefore, at least 60% of loan funds must be used to cover payroll expenses, with no more than 40% used on non-payroll costs. Expenses include:
Payroll expenses (60%): Salaries, wages, tips or commissions (max. $100,000 per employee gross earnings), employee benefits (i.e. vacation/sick pay, healthcare/retirement benefits, life/vision/disability/dental insurance, state and local taxes).
Non-payroll expenses (40%): Mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
What do I need to apply?
- Determine if your business is eligible for a first draw or a second draw PPP loan, or decide if you want to modify an existing first draw PPP loan. See details.
- Gather the required documents that you need to upload when you apply. See required documents.
- Have the following account information ready:
- Your Bank of the West business checking account number and routing number
- If you have a PPP loan, you will need the SBA loan number and loan amount
- If you have an EIDL loan, you may need the SBA loan number and loan amount
I have an existing PPP loan
If you have an existing first draw PPP loan (from 2020), you may be eligible to modify your loan or apply for a second draw PPP loan – See eligibility.
If you have a first draw PPP loan with an institution other than Bank of the West, you can apply for a second draw PPP loan with Bank of the West, if you are eligible. Make sure to have your SBA loan number and loan amount ready when you apply.
Determine your first draw loan or second draw loan eligibility
Depending on your business situation, there are three different paths to apply for PPP funding. Before you apply, know which PPP loan path you are eligible to apply for.
First draw PPP loans
First-draw PPP loans are available to eligible businesses that have not previously received PPP funds. General first draw PPP loan eligibility information:
- Your business was in operation on February 15, 2020, is not permanently closed and;
- Your business meets the SBA industry size standards or meets the SBA alternative size standards or has no more than 500 employees per location (including affiliates), including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors and;
- Your business has not previously taken PPP loan funds
- The SBA includes additional eligibility and loan information, depending on your business type and/or situation. Learn more at the SBA.gov
How to calculate a first draw loan
The SBA provides a step-by-step guide to calculate a first draw maximum loan amount. We encourage you to review this guideline before you apply. Get SBA first draw calculation guideline.
First draw loan terms
- Loan amounts up to $10 million, equal to 2.5 times your average monthly payroll
- Loan funds can be used during a period of 8 to 24 weeks (not limited to an 8 or 24 weeks), known as the covered period
- PPP loans can be fully forgiven after the covered period if at least 60% of the loan funds are used for payroll costs, with no more than 40% used for certain non-payroll costs and you maintain employee compensation levels
Second draw PPP loans
Second draw PPP loans (a second PPP loan) are PPP loans that are designed to help hard-hit small businesses with a second PPP loan. Second draw PPP loans have additional eligibly requirements:
- Your business was in operation on February 15, 2020, is not permanently closed and;
- Your business is an eligible business:
- Businesses with no more than 300 employees (including affiliates), including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors or
- Businesses with NAICS codes starting with 72, such as hotels and restaurants, and new businesses must have no more than 300 employees per location or
- Certain new organizations or non-profit broadcast entities must have no more than 500 employees and;
- Your business experienced at least a 25% reduction in gross revenue/receipts for any one quarter in 2020 relative to the same quarter in 2019 or the full year 2020 relative to 2019 and;
- Your business must have used the full amount of your existing PPP funds by the time your second draw PPP loan is funded
- The SBA includes additional eligibility and loan information, depending on your business type and/or situation. Learn more at the SBA.gov
Important: If your requested second draw loan amount is $150,000 or more, you must submit certain required financial documents when you apply. Learn what documents are required.
How to calculate a second draw loan
The SBA provides a step-by-step guide to calculate a second draw maximum loan amount. We encourage you to review this guideline before you apply. Get SBA second draw calculation guideline.
Second draw loan terms
- Loan amounts up to $2 million, equal to 2.5 times your average monthly payroll (3.5 times for NAICS codes starting with 72, such as hotels and restaurants)
- Loan funds can be used during a period of 8 to 24 weeks (not limited to an 8 or 24 weeks), known as the covered period
- PPP loans can be fully forgiven after the covered period if at least 60% of the loan funds are used for payroll costs, with no more than 40% used for certain non-payroll costs and you maintain employee compensation levels
Modify an existing first draw PPP loan
You may be eligible to modify your current, first draw PPP loan with Bank of the West to the maximum allowable amount if your first draw PPP loan is with Bank of the West, and either:
- You were previously approved for the maximum eligible amount, and;
- You returned part or all of the PPP loan funds, or
- You did not accept the full amount of the PPP loan funds for which you were approved,
- You did not apply for the maximum allowable amount on your first draw PPP loan
Make sure to have your SBA loan number and loan amount ready when you apply. If your first draw PPP loan is with a financial institution other than Bank of the West, you must contact your other financial institution to help you modify your loan.
We expect more details soon from the SBA explaining this option.
Gather your required documents & information
To apply for a PPP First Draw or Second Draw PPP loan with Bank of the West, you will need to provide information and upload certain documents to help substantiate information about your business and your loan request.
Required information
- Bank of the West Business Checking Account number and routing number
- If you currently have a PPP loan or Economic Injury Disaster Loan (EIDL), you may need to provide:
- SBA Loan #
- PPP Loan amount
- EIDL #
- Loan amount
- If you are applying for a second draw PPP loan, you will need to provide additional documentation to substantiate your loss in gross revenue/receipts, such as relevant tax forms or financial statements.
Required financial documents
If you are applying for a second draw PPP loan and your requested loan amount is $150,000 or more, you will need to submit certain required financial documents when you apply to substantiate your loss of at least a 25% in gross revenue/receipts.
Learn what financial documents are required
Required documents for annual comparison:
- 2019 business tax return and 2020 business tax return (even if unfiled) or;
- 2019 & 2020 business income & expense statement (aka Profit & Loss or Income Statement)
The SBA includes additional eligibility and loan information, depending on your business type and/or situation. To calculate a first draw maximum loan amount, the SBA provides step-by-step guidelines by entity type. We encourage you to review the SBA's guidelines, which we believe will be helpful in completing your application. Review the SBA guidelines.
Required documents for quarterly comparison:
- One quarter (3 months) of 2019 business income & expense statements and the same one quarter (3 months) in 2020. You may choose any quarter for comparison: January-March, April-June, July-September or October-December
Depending on your situation, the SBA provides three options to compare the periods for your loss of at least a 25% in gross revenue/receipts:
- Businesses in operation for all of 2019 and 2020 can compare annual gross receipts between both years or can select a reference quarter in 2019 for comparison against the same quarter 2020 or;
- Businesses in operation for part of 2019 can select a reference quarter for comparison against the same quarter in 2020 or;
- Business which were not in operation in 2019, but were in operation on or before February 15, 2020, can compare Q1 2020 with another quarter in 2020
Note, the SBA defines gross receipts as all revenue from any source including sales of products or services, interest, dividends, rents, royalties, fees or commissions (reduced by returns and allowances, and excluding any PPP forgiveness amount paid by SBA to the PPP lender in 2020).
Important: we support the following document file types: .pdf, .doc, docx, .xls, .xlsx, .rtf, .csv, .png.
Note, financial documents are not required at this time if you are applying for a second draw PPP loan less than $150,000, or if you are applying for a first draw PPP loan.
Required payroll document
Click on your business type below for a list of documents you need to have ready. Third party vendor PPP payroll reports (eg. ADP, Paychex) are also acceptable forms of payroll documentation. We encourage you to submit third party vendor PPP payroll reports (eg. ADP, Paychex) as they are also acceptable forms of payroll documentation. However, submission of documents other than third party vendor payroll reports and/or those listed below may cause delays in processing your loan application.
Please note, we support the following document file types: .pdf, .doc, docx, .xls, .xlsx, .rtf, .csv, .png.
Independent Contractor, Sole Proprietorship, Self-Employed with No Employees
- IRS Form 1040 Schedule C for 2019 or 2020 (even if unfiled)
- IRS Form 1099-Misc for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
Self-Employed with Employees
- IRS Form 941 for each quarter of 2020 or IRS Form 944 for 2019 or 2020 (even if unfiled)
- IRS Form 1040 Schedule C for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
Farmer with No Employees
- IRS Form 1040 Schedule F for 2019 or 2020 (even if unfiled)
- IRS Form 1099-Misc for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
Farmer with Employees
- IRS Form 941 for each quarter of 2020 or IRS Form 944 for 2019 or 2020 (even if unfiled)
- IRS Form 1040 Schedule F for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
Partnership with No Employees
- IRS Form 1065 for 2019 or 2020 (even if unfiled)
- IRS Form 1065 -Schedule K-1 for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
Partnership with Employees
- IRS Form 941 for each quarter for 2020 or IRS Form 944 for 2019 or 2020 (even if unfiled)
- IRS Form 1065 for 2019 or 2020
- IRS Form 1065 - Schedule K-1 for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
S Corporation or C Corporation
- IRS Form 941 for each quarter of 2020 or IRS Form 944 for 2019 or 2020 (even if unfiled)
- IRS Form 1120 or 1120-s for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
Non-Profits
- IRS Form 941 for each quarter of 2020 or IRS Form 944 for 2019 or 2020 (even if unfiled)
- IRS Form 990 for 2019 or 2020
- A payroll statement or bank statement for period covering February 15, 2020
Limited Liability Corporation (LLC) or Trusts
- IRS Forms based on your tax filing status for 2019 or 2020 (even if unfiled)
This list applies to the majority of businesses, but your situation may be unique, especially if you are a self-employed. The Paycheck Protection Program Forgiveness Application (SBA Form 3508) covers many special circumstances, provides information on selection of the covered forgiveness period for payroll, and addresses how to treat FTE Reduction.
Organize all the documents you gather and put them in a safe place; the SBA requires you to retain them for six years after your loan is fully forgiven and/or repaid, and to have them available for review in the future if requested.
Top PPP application FAQs
1. Registration or sign in issues:
If you are applying for a PPP loan, you must first register for a PPP profile to start your application. If you are registered for loan forgiveness with us, use your log in information to sign in to start your application.
2. First-time authentication:
When you register for the first time, we use dual-authentication technology to validate your identity. You will be asked to enter a phone number to receive a unique code. The code can be sent to you via text/SMS message (mobile phones only) or by phone call to either your landline phone or your mobile phone. You then will enter your code when prompted during your registration.
3. Temporary one-time password email not received:
If you are registering for the first time or resetting your password and you do not receive an email containing your temporary one-time password, this may be because: 1. the email can be found in your spam or junk folder (most frequent issue) or 2. if the email is NOT in your spam or junk folder, we recommend that you register again.
4. Checking account number:
You are required to enter your Bank of the West business checking account number and routing number when you apply. The account number entered must be a Bank of the West account.
5. NAICS code:
When you apply, you will be asked for your business' North American Industry Classification System (NAICS) code. You can locate your code on your tax documents.
6. Existing PPP loan information:
If you have an existing PPP loan, you must enter your SBA loan number and the original loan amount when you apply. You can find your SBA loan number near the top of your existing PPP loan promissory note. Important: do NOT include dashes or hyphens when entering your loan number.
7. Tax ID number (TIN):
If you are applying for a second draw PPP loan, you must enter the TIN number from your existing PPP loan from 2020.
8. SBA error status:
We are aware of certain PPP loan applications that have been returned to us from the SBA with a status of “SBA error." The SBA has indicated that this error status is generally due to data inconsistencies between first draw and second draw PPP loans and eligibility concerns during the SBA's review. If you are in this situation, you do not need to take any action at this time. We are working with the SBA to understand the error status and we will contact you via email or your relationship manager will contact you with any next steps.
Get more answers to our common PPP questions by visiting our FAQ resource page.
You’re ready to apply
Ready to get started? If you know which PPP loan path your business is eligible for and you have your documents and information ready, you’re all set.
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