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PPP Loan 2.0: How to Submit Your Documents to Funding Circle

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PPP Loan 2.0: How to Submit Your Documents to Funding Circle

Updated: February 10th, 2021

PPP Loan 2.0: How to Submit Your Documents to Funding Circle

Want to apply for a Paycheck Protection Program (PPP) loan with Funding Circle, but not sure where to start? You’ve come to the right place. We’ll walk you step-by-step through the entire document-gathering-and-submitting process. In this short guide, we’ll cover the general document submission process by business-type:

It might seem like a small thing, but getting your application right the first time can make a big difference for your business. The faster you get your documents and application submitted, the quicker we can send it to the SBA for approval, and the quicker you can get access to PPP funding.

It’s a win-win for everyone.

However, the whole application process can get a bit tricky, especially when it comes to providing the necessary documentation. Document organizing, tracking, and submitting isn’t fun for anyone (except for the fantastic individuals known as bookkeepers)—we get it. That’s why we created this quick-and-easy guide to make it as seamless as possible.

Below, we’ll show you exactly what documents you need for your application and where you can find them. 

Documents Needed for Funding Circle PPP Loan Application

In general, all applications will require the following documents:

  • A copy of an official ID document, such as a driver’s license, for all business owners who own more than 20%.
  • Bank account verification by connecting via Plaid (more details on Plaid in the question below) or through providing a voided check.

The additional required documents needed for your application will depend on 2 primary criteria:

  • First-draw Loans vs. Second-Draw Loans
  • Businesses With Employees vs. Businesses Without Employees

Each of these factors will determine which documents you will need to provide.

First-draw loan applicants are those who didn’t get a PPP loan in 2020 when the program initially started. If that’s you, then you’re a first-draw PPP loan applicant.

If you already received a PPP loan last year, but you’re applying again, then you’re a second-draw PPP loan applicant.

Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First-draw PPP Loan if they previously returned some or all of their First-draw PPP Loan funds, or (2) under certain circumstances, request to modify their First-draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.1

Before we review the documents needed for your PPP loan application, we want to share an important note about why we suggest that you link your bank account in your application, and how we keep your information safe and secure.

Why should I use Plaid to verify my bank account information?

Linking your bank account to your Funding Circle application is the fastest and most convenient way to provide verification of your bank account information. Linking your bank account helps to ensure that, if your loan application is approved, funds can be sent to you as quickly as possible.

We understand the importance of keeping your financial information safe and secure. That is why we have partnered with Plaid. Plaid is used by many major banks and credit unions, such as American Express, and financial apps, such as Venmo. With Plaid:

  • Your data is encrypted using a combination of the Advanced Encryption Standard (AES 256) and Transport Layer Security, which helps keep your sensitive data secure and protected.
  • Funding Circle can only view the information necessary to verify your account information, such as account owner’s name, account number and routing number.
  • Funding Circle never has access to your login credentials.

If your bank does not participate with Plaid or if you would prefer to provide a voided check instead, you may verify your bank account information by providing us with a voided check that shows the business name, account number and routing number. Follow the steps below to provide us with a voided check:

  1. First, you must fail to log into your bank account via Plaid (for example, you can do this by typing in an incorrect password).
  2. When you reach the failure to connect screen and exit Plaid, you will see the option to upload a voided check.
  3. When uploading a voided check, be sure to include the business name, account number and routing number.

Sole Proprietors (Businesses Without Employees)

First-draw applicants will need the following documents:

1. 2019 Form 1040 Schedule C

Schedule C (Form 1040) is used to report your business’s income or loss. If you’re a sole proprietor (which includes freelancers and side giggers) or a single-member limited liability corporation (LLC), you’ll file a Schedule C at tax time and submit it with your Form 1040. 

You should have completed this document when you submitted your 2019 taxes, so you should be able to find it in your financial records. 

2. (1) 2019 Bank Statement and (1) February 2020 Bank Statement

Your bank statements will be used to confirm your business was in operation before February 15, 2020.

Businesses With Employees

First-draw applicants will need the following documents:

1. 2019 Form 1040 Schedule C

Schedule C (Form 1040) is used to report your business’s income or loss. If you’re a sole proprietor (which includes freelancers and side giggers) or a single-member limited liability corporation (LLC), you’ll file a Schedule C at tax time and submit it with your Form 1040. 

You should have completed this document when you submitted your 2019 taxes, so you should be able to find it in your financial records. 

2. 2019 Form 941 (for All 4 Quarters)

Form 941 is a quarterly tax return used to report income taxes, Social Security tax, or Medicare tax that your business withheld from employee paychecks. It’s also used to pay your business’s portion of Social Security or Medicare tax.

Check with your payroll provider to download these documents for all 4 quarters of 2019.

3. February 2020 Bank Statement (Showing Payroll Debit) or Q1 2020 Form 941

You’ll need to submit a bank statement for February 2020 that shows your payroll debit(s), or a Form 941 for the first quarter of 2020. If that’s not available, you can use a payroll statement that covers February 15, 2020.

Note: If you have a comprehensive 2019 payroll report from your payroll processor, you can submit this document in place of your Schedule C and Form 941s.

Partnerships or Corporations

First-draw applicants will need the following documents:

1. 2019 Business Tax Return (and K-1s If You Filed Form 1065)

Partnerships and multi-member LLCs file a Form 1065 and Schedule K-1, while corporations file a Form 1120. These forms report your business’s income, gains, losses, deductions, and credits to determine your tax liability.  

You should have completed these documents when you submitted your 2019 taxes, so you should be able to find them in your financial records.

2. 2019 Form 941 (for All 4 Quarters)

Form 941 is a quarterly tax return used to report income taxes, Social Security tax, or Medicare tax that your business withheld from employee paychecks. It’s also used to pay your business’s portion of Social Security or Medicare tax.

Check with your payroll provider to download these documents for all 4 quarters of 2019.

3. February 2020 Bank Statement (Showing Payroll Debit) or Q1 2020 Form 941

You’ll need to submit a bank statement for February 2020 that shows your payroll debit(s), or a Form 941 for the first quarter of 2020. If that’s not available, you can use a payroll statement that covers February 15, 2020.

Note: If you have a comprehensive 2019 payroll report from your payroll processor, you can submit this document in place of your Schedule C and Form 941s.

Start Your Application With Funding Circle

Once you’ve gathered up all your documentation, head on over to Funding Circle’s PPP application. We’ll walk you step-by-step through the process. Remember, failing to submit a document can delay your submission, so do your best to submit all required documents as quickly as possible.

First-time Funding Circle PPP applications only take around 8 minutes, and it’s even quicker for second-time drawers. Get started as soon as possible to get your business the financial support it needs in 2021.

Now accepting new customers for first and second draw PPP loans.

Apply now
paycheck protection program

1 At this time, Funding Circle is not accepting requests for recalculations of First Draw PPP loans made before August 8. 2020.

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