SBA Form 2483 – PPP First Draw Borrower Application Form – Paycheck Protection Program (SBA Form 2483, filed on March 21) A revised version of the Borrower Application Form was published on March 18, 2021. The following is the purpose of this form: To submit to your SBA Participating Lender, you must fill out this form and get it signed by the authorized representative of the Applicant.
Use this SBA Form 2483 to submit an application for the Paycheck Protection Program (PPP) with an approved lender for a First Draw loan using the Small Business Administration.
Filling up and submitting this form to your SBA participating lender is the responsibility of the applicant’s authorized representative. It is necessary to provide the relevant information in order to determine whether or not you are eligible for financial help. The failure to provide the information would have an impact on that decision.
The SBA Form 2483 Is Used To Accomplish A Certain Goal
Applicants must complete and submit this SBA Form 2483 to their SBA Participating Lender once it has been completed by the Applicant’s authorized agent. It is necessary to provide the relevant information in order to determine whether or not you are eligible for financial help. The failure to provide the information would have an impact on that decision.
This form must be completed by any Applicant who files an IRS Form 1040, Schedule C, and elects to compute the PPP loan amount using net profit as the basis. It is not possible to utilize this form if the applicant submits an IRS Form 1040, Schedule C, and elects to calculate the PPP loan amount based on gross income. Instead, the applicant must use SBA Form 2483-C. An Applicant who submits an IRS Form 1040, Schedule F, and determines the amount of the PPP loan based on gross income must also complete this form with the IRS.
SBA Form 2483 Instructions For Completing The Form
For the purposes of the loan, payroll costs are defined as compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or other similar compensation; cash tips or the equivalent (based on employer records of previous tips or, in the absence of such records, a reasonable and good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave (other than paid leave); and payment for unused sick leave (other than paid leave).
allowance for separation or dismissal; payment for the provision of employee benefits (including insurance premiums) consisting of group health care coverage, group life, disability, vision, or dental insurance, and retirement benefits; amounts for which a credit is allowed under FFCRA Sections 7001 and 7003); allowance for separation or dismissal; payment for the provision of employee benefits (including insurance premiums) consisting of group health care coverage, group life, disability, vision, or dental insurance, and retirement benefits;
or net profits from self-employment or other forms of remuneration equivalent to it.
Most applicants will use the average monthly payroll for 2019 or 2020, excluding costs over $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred, for each employee, in order to calculate the average monthly payroll.
For seasonal businesses, the Applicant may elect to use the average total monthly payroll for any twelve-week period selected by the Applicant between February 15, 2019 and February 15, 2020, excluding costs exceeding $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred, for each employee instead of the average total monthly payroll. It is possible for new businesses to calculate average monthly payroll for each employee using the time period spanning from January 1, 2020, to February 29, 2020, excluding costs exceeding $100,000 on an annualized basis, as well as prorated amounts for each employee for each month during which the payments are made or the obligation to make the payments is incurred. Employees’ eligible payroll costs are used to compute payroll costs for farmers and ranchers that operate as a sole proprietorship or as independent contractors, or who are eligible self-employed individuals (including single member LLCs and qualified joint ventures) who report farm income or expenses on a Schedule F (or any equivalent successor IRS form) and report farm income or expenses.
The greater of $100,000 or the difference between gross revenue and any qualified payroll expenditures for workers, as reported on Schedule F, whichever is greater. For applicants who file IRS Form 1040, Schedule C, and choose to calculate the PPP loan amount using net profit, payroll expenses are determined using the line 31 net profit amount, which is restricted to $100,000, plus any qualifying payroll costs for workers who work for the applicant (to calculate loan amount using gross income, see SBA Form 2483-C). In the case of applicants
Payroll costs for partnerships are computed using net earnings from self-employment of individual general partners, as reported on IRS Form 1065 K1, reduced by section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties, multiplied by 0.9235, that is not more than $100,000, plus any eligible payroll costs for employees. For corporations that are partnerships, payroll costs are computed using net earnings from self-employment of individual general partners, as reported on IRS Form 1065 K1,
Only one spouse may submit this form on behalf of the qualified joint venture if the applicant is a Schedule F filer and the applicant is a qualified joint venture for federal income tax purposes (i.e., (1) the only members of the joint venture are a married couple who file a joint return and each file Schedule F, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership).
To compute the loan amount based on gross income (for Schedule F filers only), add up the gross income (Schedule F, line 9) from both spouses and divide the result by the number of children. Sole proprietors, self-employed persons, and independent contractors should count themselves as employees for the purposes of reporting the number of employees (i.e., the minimum number of employees in the box “Number of Employees” is one). When determining the number of workers, applicants may use their average employment during the time period utilized to compute their aggregate payroll expenditures to ascertain the number of employees they have. Candidates may also choose to utilize the average number of workers per pay period in the 12 calendar months before the date of their loan application.
Self-employed people and independent contractors are permitted to submit “NA” as their year of establishment for the purposes of reporting.
When reporting NAICS codes, applicants must ensure that the business activity code on their IRS income tax filings, if any, corresponds to the NAICS code they are reporting.