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Paycheck Protection Program

Paycheck Protection Program

LEDC is a community financial institution approved by the SBA to disburse PPP loans. Please refer to the following program overviews, FAQ, and list of required documents. Further down on this webpage you will see PPP forgiveness information and SBA reports. NOTE: The deadline to apply for PPP has been extended to May 31, 2021.

Review LEDC's Informative Session (English) / (Español)

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More Information About PPP:

Documents Required:

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
    • Corporations and 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
    • Self-Employed Individuals and 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 around February 15, 2020
    • Book of record establishing you were in operations on February 15, 2020.
  4. Business Formation Document (all that apply):
    • Articles of Incorporation/Organization
    • Bylaws
    • Partnership Agreement
    • Non-Profit Bylaws
    • 501(c)(3) or 501(c)(6) Evidence
  5. Photo Identification (one of the following):
    • Driver license
    • Passport or Certificate of Naturalization
    • Lawful Permanent Resident Card (both sides)
  6. SBA Application 
    • First Draw
    • SBA Form 2483    S-Corp | Corporations | Partnerships (English)
    • SBA Form 2483-C  LLC Single-member | Sole proprietors (English)
    • Second Draw
    • SBA Form 2483-Second Draw    S-Corp | Corporations (English)
    • SBA Form 2483-SD-C  LLC Single-member | Sole proprietors (English)
  7. Proof of 25% Revenue Reduction – Second Draw Applicants Only (one of the following):
    • NOTE: Please refer to the answer to question 4 in the "How to Calculate Revenue Reduction..." document linked at the top of the webpage for details on what documentation is required.
      • 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.
  8. 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

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Frequently Asked Questions:

  1. Are there any changes in eligibility for this round of PPP?
    • Yes, some changes have occurred, but mostly to expand eligibility, such as to nonprofit organizations. Moreover, borrowers with delinquent federal student loans are now able to receive PPP. Another important consideration is that self-employed individuals will be able to calculate their payroll using gross income (line 7 of the Schedule C) as opposed to net profit. Generally, if you were eligible for a first-round PPP, then you will be eligible for this second round.
  2. 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 May 31, 2021. According to the SBA PPP Report, CDFIs disbursed $7.5 billion PPP loans in the last round.
  3. 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.
  4. 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.
  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.

Forgiveness:

  • Simple Forgiveness Application and Instructions - Loans of $150,000 or Less (English)
  • EZ Forgiveness Application and Instructions (English)
  • Forgiveness Application and Instructions (English)

SBA Reports:

  • SBA PPP Report: Approvals through 03/21/2021 (English)
  • SBA PPP Report: Approvals through 08/08/2020 (English)
  • SBA Guidance on Accessing Capital for Minority, Underserved, Veteran
    and Women-Owned Business Concerns (English)