Paycheck Protection Program (PPP) Loan without a 2019 Payroll?

[BizAM]

I’m thinking of applying for the SBA’s Paycheck Protection Program loan for my c-corporation business.

Even though the business was operational in 2019, it did not have employees that year. It does, however, have employees since the start of 2020. Given that, would this business still qualify for a PPP loan? As documentation, could I just use a completed Form 941 from the first quarter of 2020? There wouldn’t be Forms 941 from 2019 because there were no employees.

[jimr451]

This may be too late for you, but I do think you'd qualify. It seems the paperwork required to prove the expenditures will be light, and not too rigorous. So as long as you can show you spent the money on "payroll", it should pass. At least that's what I've seen in the early guidance.

Keep in mind I'm just another small business owner, so it's just my opinion. It seems like unless you are going for a large amount of money, say > $100K, the scrutiny will not be too deep.

Good luck if you go that way - I think there's still unclaimed $$ available.

-Jim

[MCA737]

SBA Web Site - Also look at the SBA 7(a) Loan Info.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief


(https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief)