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How To Get Ppp Loan Without Bank Account

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How To Get A Ppp Loan Without A Business Explained

How to get a PPP Loan without a bank account

The Paycheck Protection Program is still in effect, but businesses must apply for eligible funding by May 31, 2021. These business loans are backed by the Small Business Administration .

The PPP was created to assist businesses by keeping employees on payroll while coronavirus restrictions caused severe drops in operation and revenue. PPP loans aren’t just for businesses with dozens of employees. The loans are also available to sole proprietors, independent contractors, and self-employed persons.

What Can You Expect From The Sba Direct Forgiveness Portal Process

  • Go to the SBA Direct Forgiveness Portal at to register into the portal and begin the process.
  • Through the Portal, you will provide information required by the SBA to complete your application for forgiveness of your PPP loan. The platform has useful reference information to answer questions you may have about the application and process.
  • When you have completed the application in the portal, you will receive your completed forgiveness application for signature electronically.
  • Once your application is electronically signed and returned, the SBA Direct Forgiveness Portal will provide your forgiveness application to Customers Bank for processing.
  • Customers Bank has up to 60 days for this review and processing.
  • While unlikely, if during processing our processing team has any questions, they will reach out to you directly by messages through the SBA Portal or by email.
  • Upon completion of processing, our processing team will submit your forgiveness application to the SBA with the Banks recommendation for the SBAs final approval.
  • The SBA has up to 90 days from Customers Banks submission to process the forgiveness decision.
  • During the process, you can access the SBA Direct Forgiveness Portal and see information about the current status of your forgiveness application.
  • Once the SBA decision has been made, Customer Bank will be notified of your forgiveness amount.
  • Is Bank Of America Participating In The Sba Direct Forgiveness Program For Applications Equal To Or Less Than $150000

    The Small Business Administration announced on July 28, 2021 a new initiative that will allow borrowers of participating lenders with loans less than or equal to $150,000 to apply for forgiveness through the SBAs direct forgiveness online portal.

    Bank of America has already implemented a streamlined end-to-end digital portal and associated review process for your PPP Forgiveness application, and we will not be using the SBA Direct Forgiveness online portal.

    Our decision to opt out of the SBAs forgiveness portal will not impact the outcome of your forgiveness application. You will need to apply directly with Bank of America when you receive the Forgiveness invitation.

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    Live Oak Banking Company

    Live Oak Bank was taking PPP applications from existing loan customers but is no longer accepting new applications. If you are an existing customer, the nationwide bank says to contact your business analyst for more information. If you are not an existing customer, you can sign up for notifications here. Consolidated assets: $4.8 billion.

    What Is The Paycheck Protection Program

    Sole proprietor New Yorkers without a business bank ...

    The Paycheck Protection Program is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration with rules, requirements, protocols and processes that all participating lenders, including Bank of America, must follow.

    The eligibility requirements are outlined for applicants on the U.S. Treasury and SBA websites.

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    Keep Separate Bank Accounts

    As a business owner, its good practice to keep a . And, you should be doing the same thing when it comes to a PPP loan.

    To keep your PPP funds and transactions organized, consider setting up a separate bank account for the PPP loan money you receive. A separate account lets you easily show that your business used PPP funds for eligible expenses . Not to mention, a separate PPP loan account will help simplify the PPP loan forgiveness process.

    The Bottom Line On Applying For Ppp When Self

    If you qualify for PPP, by all means be sure to apply. This loan may be fully forgiven and may provide essential funding to your business.

    That said, it will be a lot easier to apply for PPP if your bookkeeping is up to date and you have kept good records of the income and expenses of your business. If you have operated your business with cash payments that you did not report to the IRS, co-mingled personal and business funds, or if you have maximized expenses to the point where your business only shows a loss, you are likely not going to be able to qualify for the PPP loan your business may have been entitled to otherwise. Your accounting professional can prove invaluable in this process so make sure you enlist their help in determining which COVID relief programs are best for your business.

    This article was originally written on April 14, 2020 and updated on December 10, 2021.

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    Do: Apply With More Than One Lender

    You dont want to spam lenders with loan applications, but you do want to have a Plan B and Plan C in case a lender rejects your application.

    Alozie recommends working with a lender you know. If thats not an option, look for lenders accepting PPP applications from new clients .

    Accepting multiple PPP loans will land you in hot water fast, so withdraw any applications with other lenders as soon as you’re approved for a PPP loan.

    Your Complete Guide To Ppp Loans


    The Paycheck Protection Program is designed to help small businesses keep workers on the job. It’s important to know who’s eligible–and who’s not.

    Rebecca LakeApril 28, 2021

    In This Article

  • Chime and PPP loans: FAQ
  • TL DR: Small businesses including 1099s and sole proprietors are only eligible for PPP loans if theyve been in existence prior to February 15, 2020. Acceptance of deposits are subject to account agreements.

    The Paycheck Protection Program is designed to help small business owners keep their doors open and their employees on the job during the pandemic. But theres plenty of confusion about how the program works and who qualifies.

    Wondering if your business could be eligible for a PPP loan?

    Heres an in-depth look at how the Paycheck Protection Program works and how to know if you qualify.

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    Businesses With More Complex Situations Or Those Businesses That Made Significant Reductions In Employees And Wages

    You are eligible to apply using the PPP Forgiveness Application 3508

    Form 3508 helps businesses that have PPP loans $150,000 or more and made more significant employee reductions and wages, or for businesses that may have more complex situations. The application is more complex than that of its peer applications and it requires multiple calculations and documents to be submitted and sent to the SBA.

    Application Form 3508 eligibility information:

    If you are not eligible to complete form 3508S or 3508EZ, you are required to apply using the standard application.

    You can find more details and instruction about Form 3508 on the SBA’s website.

    Bank of the West Forgiveness Assistant Form

    We understand that Form 3508 is more complex and requires multiple calculations. Don’t worry, if you’re a Bank of the West PPP customer, we’ve created the Forgiveness Assistant Form to help you through the standard application. The Forgiveness Assistant Form is required if you are applying for PPP loan forgiveness with us and you are not eligible to complete Forms 3508S or 3508EZ. You will need to download the Forgiveness Assistant Form, complete it, save it and then upload it into our online portal when prompted.

    What Are The Risks Of Being Targeted For Ppp Loan Fraud

    Although the PPP is a unique program that Congress created specifically to provide relief to struggling businesses during the COVID-19 pandemic, fraud targeting the program is a serious offense that will be prosecuted similarly to other types of federal program fraud. This means that the penalties can be severe, and companies and their owners and executives will be at risk for both civil and criminal prosecution. In some of the federal criminal prosecutions for PPP loan fraud to date, the DOJ has filed criminal complaints asserting charges such as:

    • Aggravated identity theft
    • Conspiracy to commit bank fraud
    • Conspiracy to make false statements to influence the SBA
    • Making false statements to a financial institution
    • Making false statements to the SBA
    • Wire fraud

    Each of these offenses carries the potential for substantial fines and years, if not decades, of federal imprisonment. Additionally, in many cases, defendants are facing multiple counts of multiple alleged offenses. If charged civilly, companies and their owners and executives can face fines, loss of government contract and program eligibility, and other federal penalties.

    Are you being audited by the SBA or investigated by the DOJ for PPP loan fraud? If so, there is no time to waste. To discuss your defense strategy in confidence, contact us today.

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    Browse Your Loan Options By Loan Type

    Title loans

    This short-term loan option allows people who might not meet personal loan requirements to borrow against the value of their car. You can often take out 25% to 50% of your cars value, though its possible to find loans for up to 90% of its resale price. Some lenders dont require a bank account if you apply in person.

    With a title loan, you put your cars title up for collateral, rather than the vehicle itself. This means youre able to drive it around while youre repaying your loan.

    If you arent able to pay it back, however, youll lose ownership of your car. This is a real risk: A May 2016 Consumer Financial Protection Bureau study found that a fifth of all title loans ended in repossession and a third ended in default.

    Collateral makes you less of a risk to your lender, which often means stronger rates than youd find with a payday loan. But these loans are still expensive and face state regulations.

    Like with payday loans, consider calling ahead to make sure you can qualify without a bank account.

    That short-term loan might take longer to repay than you think.

    A high APR on a payday or title loan might not cost much if you can repay it on time. But it can become expensive if you choose to roll over your loans or take out a new loan to pay it off later.

    A credit counselor can explain your options and help you come up with a recovery plan. Start with the Department of Justices list of government-approved credit counseling agencies.

    Pawn loans

    How Does New Legislation Change The Ppp Loan Forgiveness Process

    Should Small Businesses Use PPP Loans?

    Legislation signed into law December 27, 2020, known as the Economic Aid Act, contained the following changes:

    • You now have the option to select a covered period which ends on a date that is at least 8 weeks following the date of loan disbursement, and not more than 24 weeks after the date of loan disbursement
    • Includes provisions that expand the list of allowable and forgivable expenses, which apply to existing PPP loans for which a borrower has not yet received forgiveness

    The Paycheck Protection Program Flexibility Act, signed into law on June 5, 2020 contained the following requirements:

    • Your deferral period, during which payments on your loan will be deferred, will commence on the date on which your PPP loan was funded and end on the date on which the amount of forgiveness as determined under section 1106 of the CARES Act is remitted to the Bank or the date which is ten months after the last day of your covered period , if you have not applied for forgiveness by such date
    • You must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%
    • You can use up to 40% of funds for eligible nonpayroll costs, up from 25%

    For additional details, please visit the SBA website.

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    Who Is Eligible To Apply For A Ppp Loan

    The SBA has some guidelines on who can apply for a PPP loan. In terms of who may qualify for a First Draw PPP loan, the list includes:

    • Sole proprietors, independent contractors, and self-employed persons
    • Any small business concern that meets SBAs size standards
    • Any business, 501 non-profit organization, 501 veterans organization, or tribal business concern of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500
  • Any business with a NAICS code that begins with 72 that has more than one physical location and employs less than 500 per location
  • For Second Draw PPP loans, you may qualify if:

    • You previously received a First Draw PPP loan and will or have used the full amount only for authorized purposes
    • Your business has no more than 300 employees
    • You can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

    Your business has to have been affected by the COVID-19 pandemic in some way. And you must have been operational before February 15, 2020.

    United Midwest Savings Bank

    Based in Columbus, Ohio, United Midwest Savings Bank is the 13th largest SBA lender in the country, based on number of loans. It is currently accepting PPP loan applications only from existing customers, and does not provide any information about its application process on its site. If you wish to contact the bank, the phone number for the large SBA loan division is 245-3033 and the number for the small SBA loan division is 211-7897. Consolidated assets: $292 million.

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    What Expenses Are Eligible For Forgiveness

    In summary, your loan funds can be used for the following business-related expenses:

    • Payroll, including benefits, to retain employees, excluding amounts above a prorated annual salary of $100,000 for employees who make more than that amount.
    • Mortgage interest payments for mortgages originated prior to February 15, 2020.
    • Rent payments on leases in force before February 15, 2020.
    • Utility payments, as long as the services began before February 15, 2020.
    • Refinancing an SBA Economic Injury Disaster Loan made between January 31, 2020 and April 3, 2020 .
    • Payments for any business software or cloud computing service that facilitates certain business operations.
    • Costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation.
    • Payments made to suppliers of goods essential to the operations of the business under contracts in effect before the origination of the loan.
    • Expenditures made to facilitate compliance with federal, state or local guidance pertaining to sanitation, social distancing or any other worker or customer safety requirement related to COVID-19 during the period between March 1, 2020 and the end of the national emergency declaration.

    What Else Do I Need To Apply

    How to Account for your PPP Loan to Maximize Forgiveness- Sole Prop and Corps – My Recommendations

    In addition to the tax documents you used to calculate your loan amount, you will need the following documentation:

    • A copy of your drivers license or passport.
    • A voided check for the deposit of your PPP loan. Some lenders require you have a business bank account. If you dont have one, we recommend opening one so your PPP funds can be deposited into that account. This will make it easy to track how you spend PPP funds.
    • For second draw PPP loans you must have the number from your first PPP loan. SBA loan numbers have eight numbers followed by a dash then two more numbers .

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    The Clock Is Ticking For Ppp Loan Relief

    If you think your small business could benefit, its important to get your application in sooner, rather than later since funding for the current round is only approved through May 31, 2021. Just remember: receiving funding when youre not eligible can lead to felony fraud charge so make sure to check the rules before applying as your business.

    Do: Keep Separate Bank Accounts And Consider Getting A Second Business Bank Account For A Ppp Loan

    Commingling business and personal expenses generally isn’t a good practice. And it can really muddy the water when you apply for a PPP loan, says Ken Alozie, managing director of Greenwood Financial Advisors in Washington, D.C.

    A bank statement from an established small-business checking account can easily show that your company was in operation on Feb. 15, 2020, which you need to show to qualify for a PPP loan. If your business runs through your personal checking account, its harder to prove, Alozie says.

    Beyond that, Barry recommends opening a second business checking account specifically for your PPP funds. That way you can easily show how the money was used when it’s time to apply for forgiveness.

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    Recording Ppp Activity Without A Separate Account

    This article discusses how to post Payroll Protection Program Loan income and expenses in accounting software, if you are not opening a separate bank account for the funds.

    In Part I of this discussion, we focused on how to post PPP funds into your accounting software if there is a separate bank account for the funds. Once again, in this article, I have teamed up with my colleague Diana Cohn of Corner Office to detail ways to book income and expenses related to the PPP from the SBA.

    Note: This article does not go into detail about who is eligible or how to apply for these funds. Instead, we focus on entries to make in your accounting software of choice, once the PPP loan funds have been received and spending has started. All examples use QuickBooks as the accounting software, so modify accordingly if you use a different program.

    Also, keep in mind that every business has different plans for how best to use their PPP funds, so this article will address only the most basic scenario: spending at least 75 percent of PPP funds on payroll costs, and up to 25 percent of the funds on other allowable expenses. See the section at end of this article on PPP allowable expenses. Note: Our suggestions are not the only way to track PPP funds – we are just offering a scenario we have tried our best to test in QBD and QBO.

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