PPP loan FAQs
Yes. The SBA Loan Number on your existing PPP loan can be found on your Loan Note (if with Bank of the West). The SBA Loan Number is a 10-digit number. Note, do not include hyphens or dashes when entering your SBA loan number in your PPP application. You will also need to know the original PPP loan amount.
You must have an active Bank of the West business checking account to apply with us. 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. Enter your correct Bank of the West business checking account number and routing number when you apply.
Second draw PPP loan amounts are based on your average monthly payroll. The SBA provides a step-by-step guide to calculate a second draw PPP loan here. We recommend that you review this guide before you apply.
No, forgiven PPP loan funds are not included as part of your gross revenue/receipts when calculating a second draw PPP loan.
When calculating the reduction of revenue/receipt for a second draw PPP loan, you may use your full year 2019 gross receipts compared to your full year 2020 gross receipts, as shown on your tax returns for each year if you were in business all of 2019. Or, you may use any one quarter in 2020 that had at least a 25% reduction in gross receipts/revenue as compared to the same quarter in 2019. Special rules apply if you were not in business during all of 2019 or you started your business after December 31, 2019 but before February 15, 2020. The SBA provides a guide to calculate your gross revenue/receipt reduction here.
I'm a sole proprietor or self-employed businesses with no employees, how do I calculate my average monthly payroll?
You must have a 1040 Schedule C for 2019 or 2020 (even if not filed). Find line 31 (net profit) on your 1040 Schedule C. If the amount is over $100,000, reduce it to $100,000 (per SBA rules) and divide by 12 for average monthly payroll amount. If the amount is zero or less, you are not eligible for a PPP loan.
I'm a non-profit or tribal organization or a church, what do I enter for ownership in my application?
Enter the non-profit (tribal organization or church) as the 100% ownership and use the same EIN number for tax identification.
It depends on your business type. Find what payroll documents you need here. Be sure to upload payroll documents for the same 12 months you used to calculate your average monthly payroll. This is required to verify your requested loan amount. If the reviewer is unable to verify your number, your application will be returned. Also, be sure to upload a payroll statement or similar documentation from the pay period that covered February 15, 2020 to establish you had employees on that date.
Yes, you should provide calendar year 2019 or calendar year 2020 payroll costs when applying. However, a seasonal employer may provide peak-season payroll for any 12 week period selected by the seasonal employer beginning February 15, 2019 through February 15, 2020. Also, if your business started after February 15, 2019, provide payroll for all months from when first in operation in 2019 or 2020 through the end of calendar year 2020 (rather than dividing by 12, you will divide by the number of months from the start of business operations through the end of 2020.
Can I include employer-paid federal taxes (i.e. employer share of social security) to calculate my loan amount?
No. However, you can include employer-paid state and local taxes (i.e. unemployment taxes) in determining average monthly payroll.
US Companies owned in whole or in part by an eligible foreign owned entity must include both U.S. employees and employees outside the U.S. when determining business size eligibility (Note, generally 500 employee maximum for first draw loans and 300 employee maximum for second draw loans). If the total combination of U.S. employees and employee outside the U.S. are over the SBA size limits, your business is not eligible for the PPP. For the purpose of calculating average monthly payroll, only US employees are used and loan proceeds must be used with U.S.-based employee payroll.