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    What Are the Required Documents for PPP Loan Application?

    ppp loan

    The SBA Paycheck Protection Program (PPP) rapidly became one of the most popular sources of funding for small businesses. During these times of unprecedented economic disruption, the SBA PPP program is, in many cases, the only thing keeping the small business sector alive.

    However, with any government program, there are many regulations and ample fine print. Moreover, with three federal auditing agencies, PPP can seem overwhelming and intimidating. Still, you can gain an edge on the system by being prepared.

    Read on to learn what PPP documents you need for increasing the chances of loan approval.

    What's Required For All Applicants

    All applicants must meet the SBA definition of small business. Sole proprietors, self-employed individuals, and independent contractors are also eligible to apply.

    The Official SBA application form (Form 3508) is simple. It asks for:

    • DBA or trade name of your business
    • Business legal name, address
    • Tax identification number
    • Business phone, primary contact, and email address
    • Average monthly payroll
    • Number of employees (Sole proprietors and independent contractors should enter “1”)
    • Loan amount requested (2.5 times your monthly average payroll costs)

    As a part of your application, you must certify that:

    • The funds will be used for the stated purposes
    • That COVID-19 has impacted your business
    • That everything you state and all documents you provide are truthful

    Requirements for Self Employed, Contractors, And Sole Proprietors

    As a self-employed individual, independent contractor, or sole proprietor, you might be able to use Form 3508EZ.

    Your ability to comply with the PPP application requirements is going to be much easier if you keep accurate business records, pay all your bills with a check or credit card, and don’t commingle your business and personal funds. If your tax records show a loss, you’ll most likely not qualify for a PPP loan.

    In addition to the application form, attach:

    • 2019 IRS 1040 Schedule C. Line 31 net profit can’t be more than $100,000
    • 1099-Misc for independent contractors
    • Invoices, bank statements or other documents that prove you’re self-employed
    • Form 1065 and associated K-1s for any partnerships
    • Income and expense reports for 2019
    • 2020 invoice, bank statement, or other records that prove you were in business before February 15, 2020

    Requirements for A Business That Has Employees

    As a small business with employees, you’ll need to answer a series of questions regarding your business ownership. These questions are part of the standard SBA PPP application form and must be answered for every individual with at least 20% equity in your business.

    You need to include at least one of the following tax documents:

    • 941 Quarterly Tax Filings (2019, 2020 1st quarter)
    • 940 Annual Tax Filings (2019)
    • IRS Form 944 (2019)

    Additional PPP documents required are:

    • IRS Form 1065, Schedule K-1
    • Articles of Incorporation
    • Payroll documents for the previous 12 months
    • Business’ payroll W-3
    • 12 months most recent bank statements
    • State and Local Payroll tax forms

    Other materials that need to be attached to your PPP loan application include:

    • Invoices or receipts from your health insurance carrier
    • Employer-paid retirement plans
    • Photocopy of valid driver’s license for every owner who holds a 20% or larger share in the business.
    • Proof that your business is active (from the Secretary of State)

    Navigating COVID-19

    No one knows when commerce will return to normal. A paycheck protection program loan will help you weather this storm. Because a PPP loan is forgivable, you avoid the negative impact of long-term debt on your cash flow. If you fail to meet the 60% payroll threshold, you may still be eligible for partial forgiveness.

    Ultimately, PPP loan terms are very affordable thanks to an interest rate of 1% and five-year terms. With PPP funds to cover payroll expenses, cash flow is available to handle the expenses of reopening your business.


    The list of PPP documents you need to apply for a loan may seem lengthy, but if you’ve employed sound accounting, it’ll be easy to collect everything you need. The key factor in your success is to answer all the questions on the application form accurately and to provide every document that’s required.