Small Business Administration Paycheck Protection Program

As business owners like you continue to feel the impact of these unprecedented times, we’re here to help. We’re proud to have served more than 200,000 customers already with Paycheck Protection Program (PPP) loans. Eighty-four percent of our PPP customers had fewer than 10 employees, and our average loan amount of $54,000 was the lowest among all of the participating large banks, showing our commitment to helping the smallest businesses in need. We’ve already contributed over $420 million of PPP loan fees earned by Wells Fargo to our Open for Business Fund that provides grants to non-profit organizations that support small businesses facing COVID-19 challenges, especially those that work with minority-owned small businesses.

Important Paycheck Protection Program (PPP) Updates

We have stopped accepting applications for PPP loans due to the Small Business Administration (SBA) PPP funding being exhausted. We invite all of our PPP loan customers to visit our Forgiveness Center and prepare to apply for loan forgiveness.

We’re honored to have helped many small businesses with PPP loans since the beginning of the program, and have worked hard to process every loan possible before the program closed. We know some customers still have financial needs to move their business forward. Here are some available resources for small businesses:

  • The SBA offers additional options for temporary COVID-19 relief funding
  • Many local city, county and state governments provide grant or loan programs for impacted small businesses.
  • Wells Fargo offers several loans and lines of credit for small businesses.
  • The Wells Fargo Small Business Resource Center features tips, tools and guidance for adapting your business during COVID-19.

At least 60% of the PPP forgiveness amount must be used for payroll and the remaining funds for non-payroll costs to be eligible to have a loan forgiven. Forgivable expenses include:

  • Payroll costs that may include wages, salaries, retirement contributions, healthcare benefits, insurance premiums, covered leave, and other expenses.
  • Mortgage interest.
  • Rent payments.
  • Utility payments.

Additional eligible expenses added with December 2020 legislation, and are retroactive to any previous unforgiven PPP loans, include:

  • Covered operations expenditure. Payment for any software or cloud computing service that facilitates business operations, product or service delivery, human resources, or accounting, among other things.
  • Covered property damage cost. Cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance.
  • Covered supplier cost. Expenditure to a supplier of goods for the supply of goods that are essential to operations when the expenditure is made and is made pursuant to a contract, order, or purchase order in effect prior to taking out the loan. With respect to perishable goods, the contract, order, or purchase order must be in effect at any time during the covered period.
  • Covered worker protection expenditure. Operating or capital expenditure to facilitate the adaptation of business activities to comply with requirements or guidance issued by federal, state, or local authorities in relation to COVID-19, including personal protective equipment.

Please visit the SBA website for a full list of expenses that can be forgiven under a PPP loan.

The PPP loan will accrue interest at an annual rate of 1%. No payment is due during the deferral period, which ends the earlier of:

  • The date when the SBA remits the amount of forgiveness on your loan to Wells Fargo (or informs Wells Fargo that forgiveness is declined); or
  • 10 months after the last day of your covered period, if you have not applied for forgiveness.

If your loan is forgiven, any interest accrued during the deferral period is eligible for forgiveness.

After the deferral period any balance that is not forgiven (including any accrued interest on the unforgiven portion) will become a term loan. Monthly payments will be due up to the maturity date, which is generally:

  • Two years from the date your loan was made if your loan received an SBA guarantee number before June 5, 2020; or
  • Five years from the date your loan was made if your loan received an SBA guarantee number on or after June 5, 2020.

 

PPP loans are eligible to be forgiven, in full or in part, if the SBA’s requirements are met. Borrowers can choose a covered period of any length between 8 or 24 weeks beginning on the date the borrower received the loan proceeds.

Please visit the Wells Fargo PPP Loan Forgiveness Center for additional guidance or resources regarding covered period, eligibility, use of proceeds, application procedures and documentation required to participate. You may also visit the SBA website for additional information.

All forgiveness applications for Wells Fargo PPP loans must be submitted online using the Wells Fargo PPP loan forgiveness application accessible through Wells Fargo Business Online® or Commercial Electronic Office®. We will notify you once the Wells Fargo PPP loan forgiveness applications become available.

If you received a PPP loan through Wells Fargo, your loan numbers will be automatically pre-filled for you within the application. You will not need to have them ahead of time to be able to apply for forgiveness.

To help you prepare for the PPP loan forgiveness application, review the recommended supporting documents on the Wells Fargo PPP Loan Forgiveness Center.

PPP-eligible small business borrowers may include small business concerns as defined by the SBA, sole proprietors, independent contractors, self-employed individuals, nonprofit organizations, tribal business concerns, Veterans’ organizations, destination marketing organizations, some news organizations, and housing cooperatives.

The latest round of PPP loan funding provides separate eligibility requirements for First Draw PPP Loan customers vs. Second Draw PPP Loan customers. The SBA eligibility requirements of the PPP program are comprehensive and cover borrower characteristics such as number of employees, type of industry, date of operation, qualifying payroll cost or self-employed compensation, and other requirements. Applicants are responsible for understanding the PPP eligibility requirements and providing accurate information on the PPP loan application. For more information about PPP loan eligibility requirements, please visit the SBA PPP site.

All PPP borrowers must:

  • Have been in operation on February 15, 2020, or have been a seasonal employer that was dormant or not fully operating as of February 15, 2020 but was in operation for a 12-week period between February 15, 2019 and February 15, 2020.
  • Meet all additional SBA PPP eligibility requirements.
  • Have an eligible Wells Fargo business checking account in the name of the business applying for a PPP loan and are enrolled in Wells Fargo Business Online® OR have Commercial Electronic Office® (CEO®) access.1 Learn more about enrolling in Wells Fargo Business Online®.

For businesses that will be taking out a First Draw PPP Loan, they also must:

  • Employ 500 or fewer employees or otherwise satisfy size standards contained in the SBA PPP eligibility requirements.
  • Meet all additional SBA PPP eligibility requirements.

For businesses that will be taking out a Second Draw PPP Loan, different or additional eligibility requirements apply. Second Draw PPP Loan customers must:

  • Employ 300 or fewer employees or otherwise satisfy size standards contained in the SBA PPP eligibility requirements.
  • Have used or will use all loan proceeds from their First Draw PPP Loan before the disbursement of the Second Draw PPP Loan.
  • Demonstrate at least a 25 percent reduction in gross receipts during appropriate quarterly or annual time periods
  • Meet all additional SBA PPP eligibility requirements.
1 If you don’t have a business checking account, one of the fastest ways to open one is to gather your required documentation and make an appointment at one of our branches. You can schedule a branch appointment using our Make an Appointment tool, or by calling the nearest branch. All business owners need to be present to open an account. With all required documents, you can usually open the checking and online banking account* during your branch visit. While you’ll be able to submit an application for a PPP loan as soon as you open a new business checking account and set up online banking, until all required account validation checks are completed for the business owners on the new business checking account, your PPP application cannot be fully processed. The required checks are often completed in a matter of days, but can take weeks depending on the completeness and complexity of the business documentation provided to open the checking account.

*To activate your Wells Fargo Business Online account you will need to set up your new debit card PIN and online banking access during the session with the branch banker before applying for a PPP loan.

The SBA requires lenders to submit a customer’s “PPP First Draw SBA Loan Number” from their previous First Draw PPP Loan when they apply for a Second Draw PPP Loan. Here are a few tips to help gather this number depending on your situation. If you are a:

  • Wells Fargo customer who had a First Draw PPP Loan with us, and you would like to apply for a Second Draw PPP Loan with Wells Fargo – You do not need to obtain or provide a PPP First Draw SBA Loan Number. We will provide this number for you during your application process.
  • Wells Fargo customer who had a First Draw PPP Loan with us, and you would like to apply with a different lender for a Second Draw PPP Loan - You will need to contact us at (844) 304-8911 to request your PPP First Draw SBA Loan Number. This number is not listed on loan documentation provided for your First Draw PPP Loan.
  • Wells Fargo customer who had a First Draw PPP Loan with a different lender, and you would like to apply with Wells Fargo for a Second Draw PPP Loan – Please contact your First Draw PPP Loan lender to request your “PPP First Draw SBA Loan Number.” This number will be required on your Second Draw PPP Loan application.

The SBA provides requirements for how to calculate your maximum loan amount. These requirements are comprehensive.  Applicants are responsible for understanding how to calculate their maximum loan amounts and for providing accurate information on the PPP loan application.  For more information about how to calculate your maximum loan amount, please view the SBA guidance documents for First Draw PPP Loans, or Second Draw PPP Loans.

Additional SBA guidance on First and Second Draw PPP Loans can be found here:

For those First Draw PPP Loan customers who have not previously received a PPP loan:

  • Borrowers can request a loan amount that is based on up to 2.5 times their average monthly payroll costs for the relevant time period.
  • The calculation for payroll costs varies based on your eligible time period.
  • The maximum loan amount is $10 million, or $20 million in the aggregate for a single corporate group (as defined by SBA PPP requirements).

For businesses that will be taking out a Second Draw PPP Loan:

  • Borrowers can request a loan amount that is based on up to 2.5 times their average monthly payroll costs for the relevant time period (or 3.5 times the monthly payroll costs for borrowers with a NAICS code beginning with 72 for the accommodations and food services sector).
  • The calculation for payroll costs varies based on your eligible time period.
  • The maximum loan amount is $2 million, or $4 million in the aggregate for a single corporate group (as defined by SBA PPP requirements).

Visit the SBA PPP site for additional information.

It is important that you supply all necessary documentation and that your documentation supports your requested loan amount to help prevent your application from being declined.

When you apply you will need to provide a requested loan amount. The SBA provides guides on calculating maximum loan amounts by business type.

Please be sure to submit necessary documents shown in the chart below, listed by entity type. This will help ensure that you include documents that support the loan amount you are requesting and to demonstrate that you meet eligibility requirements.  The documents you submit must correspond to the time period you use to calculate your maximum loan amount.

 

Category 1: Self-employed without employees

Category Definition Documents to Justify Requested Loan Amount Documents to Establish PPP Eligibility
Self-employed without employees (includes sole proprietors, independent contractors, LLCs that file a Schedule C and farmers and ranchers that file a Schedule F; does not include partners in a partnership) 2019 or 2020 Schedule C or Schedule 1 and Schedule F (required)
  • 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), IRS Form 1099-K, invoice, bank statement, or book of record establishing borrower was self-employed during relevant time period. If using 2020 to calculate loan amount, this is required regardless of whether you filed a 2020 tax return with the IRS.
  • 2020 invoice, bank statement, or book of record establishing borrower was in operation on February 15, 2020
Self-employed farmers and ranchers Same as corresponding category above except use 2019 or 2020 IRS Form 1040 Schedule 1 and Schedule F in lieu of Schedule C Same as above

 

Category 2: Self-employed with employees

Category Definition Documents to Justify Requested Loan Amount Documents to Establish PPP Eligibility
Self-employed with employees (includes sole proprietors, independent contractors, LLCs that file a Schedule C, and farmers and ranchers that file a Schedule F; does not include partners in a partnership)
  • 2019 or 2020 Schedule C or Schedule 1 and Schedule F (Required)
  • 2019 or 2020 IRS Form 941/944/943 or third-party payroll processor reports or W-2s/W-3s (must include documentation that covers entire selected time period)
  • 2019 or 2020 state quarterly wage reporting forms
  • 2019 or 2020 Schedule C/F or records from a retirement administrator (if applicable)
  • 2019 or 2020 Schedule C/F or records from a health insurance company or third-party administrator for a self-insured plan (if applicable)
Payroll statement or similar documentation from the pay period that covered February 15, 2020 (showing borrower was in operation and had employees)
Self-employed farmers and ranchers Same as corresponding category above except use 2019 or 2020 IRS Form 1040 Schedule 1 and Schedule F in lieu of Schedule C Same as above

 

Category 3: Partnerships

Category Definition Documents to Justify Requested Loan Amount Documents to Establish PPP Eligibility
Partnerships
  • 2019 or 2020 Schedule K-1 (IRS Form 1065)
  • 2019 or 2020 Form 941/944/943 or third-party payroll processor reports or W-2s/W-3s (must include documentation that covers the entire selected time period)
  • 2019 or 2020 state quarterly wage reporting forms
  • 2019 or 2020 IRS Form 1065 or records from a retirement administrator
  • 2019 or 2020 IRS Form 1065 or records from a health insurance company or third-party administrator for a self-insured plan
  • With employees: payroll statement or similar documentation from the pay period that covered February 15, 2020 (to establish the partnership was in operation and had employees on that date)
  • Without employees:  invoice, bank statement, or book of record (establishing the partnership was in operation on February 15, 2020)

 

Category 4: Corporations

Category Definition Documents to Justify Requested Loan Amount Documents to Establish PPP Eligibility
S and C Corporations
  • 2019 or 2020 Form 941/944/943 or third-party payroll processor reports or W-2s/W-3s (must include documentation that covers the entire selected time period)
  • 2019 or 2020 state quarterly wage reporting forms
  • 2019 or 2020 IRS Form 1120-S (S-Corp) / 1120 (C-Corp) tax return or records from a retirement administrator
  • 2019 or 2020 IRS Form 1120-S (S-Corp) / 1120 (C-Corp) tax return or records from a health insurance company or third-party administrator for a self-insured plan
Payroll statement or similar documentation from the pay period that covered February 15, 2020 (to establish the corporation was in operation and had employees on that date)

 

Category 5: Non-profits

Category Definition Documents to Justify Requested Loan Amount Documents to Establish PPP Eligibility
Non-Profits
  • 2019 or 2020 Form 941/944/943 or third-party payroll processor reports or W-2s/W-3s (must include documentation that covers the entire time period selected)
  • 2019 or 2020 IRS Form 990 or 990-EZ (if applicable)
  • 2019 or 2020 state quarterly wage reporting forms
  • 2019 or 2020 IRS Form 990 Part IX or records from a retirement administrator
  • 2019 or 2020 IRS Form 990 Part IX or records from a health insurance company or third-party administrator for a self-insured plan
Payroll statement or similar documentation from the pay period that covered February 15, 2020 (to establish the nonprofit was in operation and had employees on that date)
Other Non-Profits (Religious Institutions, Veterans Organizations, Tribal Businesses; Non-Profits that do not file an IRS Form 990 - typically those with gross receipts less than $50k)
  • 2019 or 2020 Form 941/944 or third-party payroll processor reports or W-2s/W-3s
  • 2019 or 2020 state quarterly wage reporting forms
  • 2019 or 2020 records from a retirement administrator
  • 2019 or 2020 records from a health insurance company or third-party administrator for a self-insured plan
Payroll statement or similar documentation from the pay period that covered February 15, 2020 (to establish the nonprofit was in operation and had employees on that date)

 
Tips to Avoid Common PPP Loan Application Errors:

  1. Consider sending a cover letter clarifying how you calculated your maximum loan amount. This will assist us in better understanding your calculations.
  2. Double-check the dates of the documents you submit in support of your loan application (e.g. 2019 or 2020) to ensure they match the time period you are using as the basis to calculate your maximum loan amount. For example, if you select the time period calendar year 2020 in the application, please make sure your supporting documents align to the year 2020 only.
  3. If you are using payroll documents to substantiate your loan amount, third-party payroll documents are acceptable. Examples include CARES SBA –PPP, ADP® Payroll, GustoTM Payroll, or Paychex® Payroll Reports. If you don’t have third party payroll documents, you may provide other documents, such as tax documents.
  4. If you include employer state and local taxes assessed on employee compensation in your loan amount calculation, be sure to only include state and local taxes (not Federal, Social Security, or Medicare taxes). State and local tax amounts can be found on state quarterly wage reporting forms or payroll processor reports, and commonly reference the State Unemployment Tax Act or SUTA.
  5. Please be sure that all documents are legible, there are no blank pages, the business name and Tax Identification Number on the supporting documentation match the application, and required signatures and initials are completed.
  6. (For Sole Proprietor business customers)
    • If you have employees and you are including employee compensation in your loan amount calculation, you must provide payroll documents supporting the employee compensation amount. If you are including owner compensation in your loan amount calculation, you must provide IRS Form 1040 Schedule C. Per SBA guidance, IRS Form 1099 cannot be used to support the loan amount calculation (though Form 1099 may be used as supporting documentation for eligibility).
    • If you are not a seasonal or a new business and will select to use either tax year 2019 or 2020, please ensure you send a full year of 941’s:
      • The 941 is the “Employer’s Quarterly Federal Tax Return” (all four quarters)
      • The 944 is the “Employer’s Annual Federal Tax Return”
      • The 943 is the “Employer’s Annual Federal Tax Return for Agricultural Employees”
  7. (For Partnership business customers) If you are including partner earnings in your loan amount calculation, please note that net earnings from self-employment of individual U.S.-based general partner(s) who are subject to self-employment tax must be supported by the IRS Form 1065 Schedule K-1.
  8. (For Non-Profit business customers) A housing allowance provided to an employee as part of compensation may be included in the loan amount calculation. Supporting documentation (such as a W-2) must reflect that the housing allowance was paid to the employee as compensation.

 
How to demonstrate 25 percent reduction in gross receipts for 2nd Draw PPP Loans of $150,000 or more:

In determining whether you experienced at least a 25% reduction in gross receipts for Second Draw PPP Loans above $150,000, you must identify the 2020 Time Period meeting this requirement, the Reference Time Period, and include the gross receipts amounts for both time periods, as well as provide supporting documentation. Your supporting documentation must match both time periods you chose and substantiate the 25% gross receipts reduction.

For all loans, the appropriate Reference Time Period depends on how long you have been in operation:

  • For all borrowers, except those mentioned below, the borrower must demonstrate that gross receipts in any calendar quarter of 2020 were at least 25% lower than the same quarter of 2019. Alternatively, borrowers may compare annual gross receipts in 2020 with annual gross receipts in 2019 if they were in business in 2019.
  • For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, borrowers must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.
  • For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, borrowers must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019.
  • For entities not in business during 2019 but in operation on February 15, 2020, borrowers must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020.

 
For ALL Second Draw PPP Loan Borrowers with loan requests of $150,000 or more, please plan on providing these additional documents:

Borrowers can provide the following documents to substantiate their 25% reduction in gross receipts (only one set is required):

  • Quarterly financial statements for the entity. If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify the line item(s) that constitute gross receipts, the borrowers must annotate which line item(s) constitute gross receipts.
  • Quarterly or monthly bank statements for the entity showing deposits from the relevant quarters. The borrowers must annotate, if it is not clear, which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions).
  • Annual IRS income tax filings of the entity (required if using an annual reference period). If the entity has not yet filed a tax return for 2020, the borrower must fill out the return forms, compute the relevant gross receipts value, and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.
    • Self-employed other than farmers and ranchers (IRS Form 1040 Schedule C): sum of line 4 and line 7
    • Self-employed farmers and ranchers (IRS Form 1040 Schedule F): sum of lines 1b and 9
    • Partnerships (IRS Form 1065): sum of lines 2 and 8, minus line 6
    • S-Corporations (IRS Form 1120-S): sum of lines 2 and 6, minus line 4
    • C-Corporations (IRS Form 1120): sum of lines 2 and 11, minus the sum of lines 8 and 9
    • Nonprofit organizations (IRS Form 990): sum of lines 6b(i), 6b(ii), 7b(i), 7b(ii), 8b, 9b, 10b, and 12 (column (A)) of Part VIII
    • Nonprofit organizations (IRS Form 990-EZ): sum of lines 5b, 6c, 7b, and 9 of Part I.
    • LLCs should follow the instructions that apply to their tax filing status in the reference periods.

The SBA provides specific instructions for completing the PPP application. Those instructions can be found on the SBA web site.

In addition, please note the following in regard to the Wells Fargo PPP loan application:

  • Who can fill out the PPP loan application?
    • The PPP loan application must be completed by an authorized representative of the borrower (your business).
  • What should I use as my TIN?
    • If the business entity applying for the loan has an Employer Identification Number (“EIN”), please use that number as the TIN for your PPP loan application. A social security number may only be used in very limited circumstances, such as when applicants are sole proprietors, independent contractors, or LLCs without an EIN. Please remember that to claim payroll and benefit expenses for more than yourself, you must have and use an EIN when you apply for a PPP loan. Be sure your Tax Identification Number (“TIN”) provided or entered in your PPP loan application is accurate. If you are applying for a Second Draw PPP Loan, your TIN must match the TIN used for your First Draw PPP Loan.
    • For certain resident and non-resident aliens, you may enter a valid International Tax Identification Number (ITIN). All valid ITINs are a nine-digit number in same format as the SSN (9XX-8X-XXXX).
  • Which address should I use as my business address?
    • You should use the legal business address (e.g., your designated address with your Secretary of State, the address on file with the IRS) of the business entity applying for the loan. Do not use a temporary address (such as if you are working from home because of COVID-19) unless that address has become the legal business address of the borrower.
  • How do I count number of employees?
    • For purposes of reporting Number of Employees, sole proprietors, self-employed individuals, and independent contractors should include themselves as employees (i.e., the minimum number in the box Number of Employees is one). Borrowers may use their average employment over the time period used to calculate their aggregate payroll costs to determine their number of employees. Alternatively, borrowers may elect to use the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application.
  • How do I select my “business category?
    • The application gives you seven business categories to choose from, as described below. If the business applying for the loan is an LLC, you must select the category based on the LLC’s tax election, for example, if a LLC is taxed as a partnership, then you would select “Partnership” as your business category.
      • Self-employed Schedule C filers without employees (using net profit to calculate your PPP loan amount): includes sole proprietors, independent contractors, and LLCs that file a Schedule C, that do not have employees
      • Self-employed Schedule C or F filers without employees (using gross income to calculate your PPP loan amount): includes sole proprietors, independent contractors, self-employed farmers and ranchers, and LLCs that file a Schedule C or F, that do not have employees
      • Self-employed Schedule C filers with employees (using net profit to calculate your loan amount): includes sole proprietors, independent contractors, and LLCs that file a Schedule C, that have employees
      • Self-employed Schedule C or F filers with employees (using gross income to calculate your loan amount): includes sole proprietors, independent contractors, self-employed farmers and ranchers, and LLCs that file a Schedule C or F, that have employees
      • Corporation (including S-Corp and C-Corp): includes S-Corporations, C-Corporations, and LLCs that elect to be taxed as a S-Corporation or C-Corporation
      • Partnership: partnerships and LLCs that have elected to be taxed as partnerships
      • Non-profit: nonprofit organizations, eligible nonprofit religious institutions, veterans organizations, and tribal businesses
  • Which “Expense Time Period” should I select?
    • The SBA provides specific requirements for how to choose the time period used to calculate your maximum loan amount. These requirements are comprehensive. Applicants are responsible for understanding how to pick the required time period. For more information, please view the SBA guidance documents for First Draw PPP Loans, or Second Draw PPP Loans.
    • Additional SBA guidance on First and Second Draw PPP Loans can be found here:
    • Borrowers must submit documentation based on the time period selected. In other words, the documentation you submit to substantiate your loan amount must cover the time period selected here. If your documentation does not match your time period, your loan application may be declined.
    • Borrowers have the following “Expense time period” options:
      • 1-year period before the date on which this loan is made: for borrowers basing their loan calculation on the previous 1-year period; per SBA rules, this option is not available to self-employed entities (sole proprietors, independent contractors, self-employed farmers and ranchers, LLCs that file a Schedule C/F)
      • Calendar year 2019 or calendar year 2020: for borrowers basing their loan calculation on either calendar year 2019 or calendar year 2020
      • January and February 2020: for borrowers basing their loan calculation on January and February 2020; per SBA rules, this option is only available for businesses that were in operation on 2/15/20 but not in operation between 2/15/19 and 6/30/19
      • Any consecutive 12-week period between 2/15/19 and 2/15/20: for borrowers basing their loan calculation on a 12-week period; per SBA rules, this option is only available to seasonal businesses with employees
        • Note: for this option, you must provide the period start date and period end date for the time period you are using for your loan calculation. Please include a 12-week time period. Including a time period that is less than or more than 12 weeks may result in your application being declined.
  • What amounts do I put in the “Payroll costs” section?
    • Borrowers must input their payroll costs on an annual basis in the blanks provided. The categories for payroll costs are:
      • Owner compensation
      • Employee compensation
      • Employee benefits
      • Employer paid contributions for employee retirement plans
      • Employer paid taxes

Once you click the button “Calculate payroll costs,” your maximum loan amount will populate. If you change the entries listed above, you must click the “Calculate payroll costs” button again so that the numbers will update with the new information.

You will be given the opportunity to add any eligible EIDL loan amounts you wish to refinance. Only EIDL loans received between January 31, 2020 and April 3, 2020, are eligible to be refinanced with a PPP loan. Second Draw PPP Loans may not be used to refinance EIDL loans.

You may request less than your maximum loan amount by entering a new loan amount on the “PPP loan amount requested” line.

 
Tips to Avoid Common PPP Loan Application Errors:

  1. Consider sending a cover letter clarifying how you calculated your maximum loan amount. This will assist us in better understanding your calculations.
  2. Double-check the dates of the documents you submit in support of your loan application (e.g. 2019 or 2020) to ensure they match the time period you are using as the basis to calculate your maximum loan amount. For example, if you select the time period calendar year 2020 in the application, please make sure your supporting documents align to the year 2020 only.
  3. If you are using payroll documents to substantiate your loan amount, third-party payroll documents are acceptable. Examples include CARES SBA –PPP, ADP® Payroll, GustoTM Payroll, or Paychex® Payroll Reports. If you don’t have third party payroll documents, you may provide other documents, such as tax documents. See a listing of documents required to support the loan amount requested as well as eligibility requirements under “What documents and information do I need to apply for a PPP loan?”
  4. If you include employer state and local taxes assessed on employee compensation in your loan amount calculation, be sure to only include state and local taxes (not Federal, Social Security, or Medicare taxes). State and local tax amounts can be found on state quarterly wage reporting forms or payroll processor reports, and commonly reference the State Unemployment Tax Act or SUTA.
  5. Please be sure that all documents are legible, there are no blank pages, the business name and Tax Identification Number on the supporting documentation match the application, and required signatures and initials are completed.
  6. (For Sole Proprietor business customers)
    • If you have employees and you are including employee compensation in your loan amount calculation, you must provide payroll documents supporting the employee compensation amount. If you are including owner compensation in your loan amount calculation, you must provide IRS Form 1040 Schedule C. Per SBA guidance, IRS Form 1099 cannot be used to support the loan amount calculation (though Form 1099 may be used as supporting documentation for eligibility).
    • If you are not a seasonal or a new business and will select to use either tax year 2019 or 2020, please ensure you send a full year of 941’s:
      • The 941 is the “Employer’s Quarterly Federal Tax Return” (all four quarters)
      • The 944 is the “Employer’s Annual Federal Tax Return”
      • The 943 is the “Employer’s Annual Federal Tax Return for Agricultural Employees”
  7. (For Partnership business customers) If you are including partner earnings in your loan amount calculation, please note that net earnings from self-employment of individual U.S.-based general partner(s) who are subject to self-employment tax must be supported by the IRS Form 1065 Schedule K-1.
  8. (For Non-Profit business customers) A housing allowance provided to an employee as part of compensation may be included in the loan amount calculation. Supporting documentation (such as a W-2) must reflect that the housing allowance was paid to the employee as compensation.

We will continue to keep applicants updated on their status by email and/or mailed letter. Because all applications are being handled online, our phone and branch bankers unfortunately will not be able to provide updates on the status of your application or reasons why a loan application was declined.

EIDL advances will no longer be deducted by the SBA from forgiveness amounts. Borrowers may be able to refinance EIDL loans funded between January 31, 2020 and April 3, 2020 with their first PPP loan.  Borrowers cannot refinance an EIDL loan with a Second Draw PPP Loan. For any questions related to the SBA EIDL program, or to obtain an EIDL loan payoff amount, contact the SBA Disaster Loan Servicing Center at (800) 736-6048 or refer to the SBA website.

If you’d like to make a complete payoff of your PPP loan and are using Wells Fargo Business Online® or you are a Wealth & Investment Management customer, please call (844) 304-8911. If you are a Commercial Banking customer, please contact your relationship team or call 1-800-AT-WELLS (1-800-289-3557) option 1, and then follow the prompts for loans. If you would like a letter confirming the payoff of your loan, you may request one at the time of payment or afterwards using the same contact numbers provided. Customers requesting a complete payoff of their PPP loan may be responsible for paying all outstanding principal as well as any accrued interest.

According to guidance from the Small Business Administration (SBA), repayment of your PPP loan in full before you apply for loan forgiveness will make your loan ineligible for forgiveness.

Please visit the SBA website for additional guidance or resources regarding eligibility, use of proceeds, application procedures and documentation required to participate.

For previous rounds of PPP loans, a federal court order made information about PPP borrowers available to the public. As a result, PPP loan borrowers could receive fraudulent calls, emails or letters. If you receive a suspicious email or text message, don’t respond, click on links, or open attachments. Please know that we won’t ask for confidential information—such as your card PIN, access code or online banking password—if we reach out to you. Learn more about avoiding scams.