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Paycheck Protection Program

Paycheck Protection Program – Round 2

LEDC is now accepting PPP applications. Please refer to the following program overviews, FAQ, and list of required documents. Once you are ready to start your application, click the “Apply” button at the bottom of the page.

Required Documents:

NOTE: The following documents are required for all first draw PPP applicants and any second draw applicant that did not receive the first PPP from LEDC. Please see further below for requirements for the second draw PPP. Additionally, Puerto Rico applicants – please provide the equivalent Puerto Rico forms, when applicable.

  1. Tax Return
    • The final 2019 business tax return is required.
    • If your business was not in operations in 2019, the draft or final 2020 business tax return is required.
    • You may opt to calculate the payroll costs from 2020 instead of 2019. In that case, supply both the final 2019 tax return and your draft or final 2020 tax return.
  2. Payroll Documentation
    • Businesses with Employees (all the following):
      • Form 940, Forms 941, or W-3
      • W-2 forms or payroll processor record
      • (Optional) State/local unemployment tax quarterly reports
      • (Optional) Group health insurance invoices and proof of payment
      • (Optional) Proof of retirement plan contributions
    • Businesses without Employees (one of the following):
      • 2019 IRS Form 1099-MISC
      • 2019 Invoice
      • 2019 Bank statement
      • Book of record establishing you were self-employed in 2019.
  3. Proof of Operations Around February 15, 2020 (one of the following):
    • Payroll processor record for the pay period that includes February 15, 2020.
    • Business bank statement for February 2020
    • Invoice on or after February 15, 2020
    • Book of record establishing you were in operations on February 15, 2020.
  4. Certification of Beneficial Ownership (download here)
    • List all owners with 20% or more share of the business.
  5. Business Formation Document (all that apply):
    • Articles of Incorporation/Organization
    • Bylaws
    • Partnership Agreement
    • Non-Profit Bylaws
    • 501(c)(3) or 501(c)(6) Evidence
  6. Photo Identification (one of the following):
    • Driver license
    • Passport or Certificate of Naturalization
    • Lawful Permanent Resident Card (both sides)
  7. SBA Application – First and Second Draw Applicants
  8. Proof of 25% Revenue Reduction – Second Draw Applicants Only (one of the following):
    • Compare gross receipts from any quarter in 2020 to the same quarter in 2019.
    • Compare the annual 2020 gross receipts to the annual 2019 gross receipts.
    • (If not operating in 2019) Compare gross receipts from any quarter in 2020 to Q1 2020.
  9. Proof First Draw PPP Loan Funds Used – Second Draw Applicants Only (one of the following):
    • Email confirmation from your lender that your forgiveness application has been submitted to SBA.
    • SBA Notice of Forgiveness Confirmation Letter

Apply

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Frequently Asked Questions:

  1. I heard PPP reopened – do I have to apply right now to make sure I do not miss out?
    • The SBA has allocated $15 billion specifically for PPP loans done by Community Development Financial Institutions (CDFIs) like LEDC and the deadline for all PPP loans to be submitted to SBA is March 31, 2021. According to the SBA PPP Report, CDFIs disbursed $7.5 billion PPP loans in the last round.
  2. I received a first draw PPP loan – do I have to do anything to receive the second draw?
    • Yes, action is required, but it is a streamlined process if you go to the same lender. Keep in mind that the first step to receive a second draw PPP loan from LEDC is to use the funds from the first PPP loan and submit the forgiveness request.
  3. I applied for the first PPP elsewhere – can I apply for the second draw with LEDC?
    • Yes, but more documentation will be required than if you go to the same lender. Please note that to start we are prioritizing first draw applicants and smaller loan amounts.
  4. Are there any changes in eligibility for this round of PPP?
    • Yes, some changes have occurred. For example, businesses must be owned at least 51% by US Citizens or Lawful Permanent Residents. Additionally, some other eligibility was expanded, such as to nonprofit organizations. Generally, if you were eligible for a first-round PPP, then you will be eligible for this second round.
  5. What are the basic eligibility requirements to receive a loan from LEDC?
    • Businesses and their owners must reside in Maryland, Washington DC, Northern Virginia, or Puerto Rico to apply with LEDC. Our mission is to fund underserved communities that cannot access traditional bank loans, but we do serve the entire community, not just Latinos.

More Information:

  • SBA PPP Report: Approvals through 08/08/20 (download here)
  • SBA Guidance on Accessing Capital for Minority, Underserved, Veteran
    and Women-Owned Business Concerns (download here)