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Documentation for SBA Loans

From North Bay Business Journal, list provided by Exchange Bank, 4/7/2020.

For calendar 2019, the applicant must provide copies of all applicable payroll documentation available, including payroll processor records, payroll tax reports filed with the IRS (including Forms 941, 940, state income and unemployment tax filing reports). That includes documentation reflecting the payments made related to health insurance premiums under a group health plan, any and all funding of retirement plans, vacation, sick leave and other paid time off, if applicable.

Here’s the bank’s checklist, based on SBA guidelines issued to date, of financial information that borrowers will need, if applicable, in order to process the SBA loan application - SCAN THESE DOCUMENTS:

  • For calendar year 2019, provide a copy of the income statement for the business.

  • For most recent payroll, submit payroll records indicating the same information as provided in the bullet above, including information confirming the number of employees.

  • Provide any documentation not requested above that supports the “Average Monthly Payroll” amount reported on page one of the Paycheck Protection Program Borrower Application Form. Exchange Bank asks that this section of the application be completed in accordance with the instruction listed on page 3 of the loan application.

  • Payroll expense verification to include IRS Form 940 and 941.

  • Payroll Summary Report with corresponding bank statement (If summary report is not available then pay stubs may be required).

  • Breakdown of payroll benefits.

  • Certification that employees live within the U.S.

  • Provide a color copy of each business owner(s) driver’s license(s).

  • For sole proprietorship, include an Income Statement for Fiscal Year End 2019 or a Filed Tax Return for most recent Fiscal Year End.

  • Submit a copy of a canceled check indicating the business’s checking account and routing number; approved loans will be funded into this checking account via ACH.

  • For corporations, include a copy of filed Articles of Incorporation (available for free at CA Business Search) and by-laws.

  • For LLCs, include a copy of the filed Articles of Organization (use same link shown above) and Operating Agreement.
  • Most recent mortgage statement or rent statement

  • Most recent utility bills
How to Calculate Payroll Cost:
  • 2019 Annual payroll cost - Subtract compensation amounts in excess of an annual salary of $100K.

  • Adjusted Payroll cost divided by 12 months = Average monthly qualifying payroll.

  • Multiply Average monthly qualifying payroll by 2.5 = Maximum loan amount.
Loan Forgiveness:
  • Borrowers will need to submit additional information at a later date in order to be granted partial or full loan forgiveness.

  • Borrowers also need to certify that the documentation is true and correct, and that the amount for which forgiveness is being requested was used to make payments to retain employees and make interest payments on covered mortgage obligations, cover rent obligations and covered utility payments. In addition, the SBA may request further information. There will be no forgiveness if the required documentation is not presented.