Wisconsin Women’s Business Initiative Corporation (WWBIC) is really excited to share that they are now opening up the PPP process to non-WWBIC clients. Funds are limited, so this will be on a first-come, first-served basis.
If the business owner has already applied for the PPP with another bank or financial institution, please work through their process first.
If the owner has not applied with a bank or financial institution, please have them follow the instructions below for WWBIC’s PPP application.
- Go to the online “SPARK” application
- When you get to the bottom of the page – PLEASE ONLY HIT SUBMIT ONCE. It may seem as though the application has not been submitted, but it has. Hitting the submit button more than once will delay processing of your application.
- There is no application fee. The final screen will ask for a $75 application fee, please bypass this screen and proceed with the application.
- After you submit an initial application, you will receive an email from WWBIC inviting you to complete your loan application via SPARK. Note: should this automatic email provide detailed information on a standard WWBIC loan, please be assured you will be routed to the PPP application once in the SPARK program.
- Please find the video link that walks you through our online application process: WWBIC PPP Loan Application How To
Key notes on the PPP Program: This is a Small Business Administration (SBA) loan under Section 1102 of the CARES Act which are eligible for forgiveness and are available to employers with less than 500 employees. Such loans will be handled through WWBIC and guaranteed 100% by the SBA.
WWBIC will need the following financial information in order to process the SBA loan application:
- Paycheck Protection Program Application – attached for your information gathering purposes and reference. You will be required to enter this information on WWBIC’s Online Application platform, “Spark.”
- Payroll processor record, payroll tax filings, or Form 1099-MISC, or 2019 tax return from a sole proprietorship from the past 12 months
- Annual Payroll Statement (if applicable)
- Payroll statement showing business was actively paying salaries and payroll tax on 2/15/20
- IRS form 941 (employer’s quarterly Federal Tax Return) (if applicable)
- IRS from 944 (employer’s annual federal tax) (if applicable)
Should your PPP loan be approved, note that the following documentation will be required to submit as part of SBA’s loan eligibility forgiveness application process:
- Copies of payroll tax reports file with the IRS (including Forms 941, 940, state income and unemployment tax filing reports) for the 8 week period following the original of the loan.
- Copies of payroll reports for each pay period for the 8 week timeframe following the origination of the loan. Gross wages including PTO (which might include vacation, sick, and other PTO) should be reflected.
- Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for the 8 week period following the origination of the loan should be provided. Copies of the monthly invoices should suffice.
- Documentation of all retirement plan funding by the employer for the 8 weeks following the origination of loan should be sufficient. Copies of workpapers, schedules and remittances to the retirement plan administrator should be available.
- Copies of all lease agreements for real estate and tangible personal property should be presented along with proof of payment during the 8 week period following the loan origination date.
- Copies of all statement of interest paid on debt obligations incurred prior to February 15, 2020 indicating payment amounts and proof of payment for the 8 week period following the loan origination date.
- Copies of cancelled checks, statements or other evidence of utilities paid during the “covered period” for the 8 week period following the loan origination date.
Each borrower will need to certify that the documentation is true and accurate and that the amount for which forgiveness is being requested was used to make payments to retain employees and to make interest payments on covered mortgage obligations, covered rent obligations and covered utility payments. The SBA may request further information. There will be NO forgiveness if the documentation is not presented and accurate. The SBA will provide a decision within 60 days after receipt of an application for forgiveness. The amount of any loan forgiveness under this program is NOT taxable income.
Frequently Asked Questions
What are the loan terms for PPP loans?
Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. This loan has a maturity of 2 years and an interest rate of 1%. The first payment is due after a 6 month deferral period. There is no fee to apply.
Can I apply with WWBIC if I’ve applied elsewhere for PPP and not heard back yet?
Yes, however, if your lender does offer and you do proceed, you should let us know ASAP.
Can I apply for PPP with multiple lenders?
No, if you have applied with another bank and have been approved, you are not able to apply.
How does SBA EIDL loans factor into PPP loan determination?
- Borrowers may apply for different SBA loans – PPP loans, EIDL loans, non-disaster SBA 7(a), 504 and microloans, and also receive investment capital from Small Business Investment Corporations (SBICs). However, you cannot use your PPP loan for the same purpose as your other SBA loan(s). If you accept the EIDL loan, and you subsequently qualify for the PPP loan, you can re-finance the EIDL loan with the PPP loan. Loans are limited to one per Taxpayer Identification Number.
- Any EIDL Advance you’re awarded subtracts from the PPP forgiveness amount you’ll qualify for. For ex: If you received a $3k EIDL advance, your PPP forgiveness amount will be reduced by that much.
Will this loan be forgiven?
The loan will be eligible to be forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. If approved, it will be EXTREMELY important for you to maintain accurate records during the eight weeks after disbursement, known as the “covered period” to track these expenses. These records will be necessary to apply for the loan forgiveness amount after the covered period ends. Any loan proceeds not used for the expenses listed above during the eight week covered period will not be eligible for forgiveness.
Can I apply if I do not have employees?
Independent contractors and self-employed individuals can apply for and receive loans to cover their payroll.
How does this loan factor into Unemployment filings?
DWD responded in bold italic to a couple scenarios to help provide clarity here:
Scenario 1: A business owner was forced to close on March 17 and received no income from March 17-April 20th. On April 20th, he receives funds from the Paycheck Protection Program, to cover wages for himself for the following 8 weeks. Can he file for pandemic unemployment payments for the period of March 17-April 20th? Yes, he can apply for those weeks.
Scenario 2: A business owner receives funds from the Paycheck Protection Program, and is able to pay herself full wages through June 10th. On June 10th, the funds run out and her business is still not generating revenue. Can she then apply for pandemic unemployment beginning on June 10th? Yes, she can apply.