PPP Lenders: Where to Apply for a PPP Loan

By Owen Yin on June 4, 2020

Editor’s note: The PPP has now been replenished for round two. We encourage all eligible small businesses to apply now through their financial institution or through an online lender as the funds will quickly run out. If you need 2019 bookkeeping completed for your application, Bench can help.

The Paycheck Protection Program has been inundated with demand from small businesses across the country. As of April 15, many business owners are getting turned away because the $359 billion PPP fund is getting depleted.

But that doesn’t mean the PPP is over! There’s a good chance there will be more PPP funds released in the near future, meaning you should still prepare your application so that when funds are released, you’ll be the first in line.

Paycheck Protection loans are administered by certain lenders who are backed by the SBA. Here are the different types of lenders you can get a PPP loan from.

Big banks

Most of the largest banks have now implemented online portals to accept applications. However, small business owners have experienced significant issues with applying, as the banks are not accepting applications from those who do not have an existing business account with them.

Community banks

Community banks were the first ones to begin processing PPP loan applications. Find a list of approved community banks near you using the SBA Lender tool.

Lender matchers

Lender matchers are companies that specialize in matching small businesses with a suitable bank partner from their pool of lenders. There is no fee to apply through their service. The lender matcher will receive a small commission from the lender, which is paid out of the origination bonus the SBA provides to the bank.

For the PPP, we recommend BlueVine.

Fintech lenders

For the very first time, the SBA and the Treasury have allowed non-traditional banks to participate in lending.

  • PayPal is actively accepting applications from current clients

  • Square is actively accepting applications from current clients

  • Quickbooks Capital is actively accepting applications from current clients


What documents do I need for my application?

You will need documentation to prove your payroll amount (or net income, if you are self-employed). If you have a payroll provider, you should be able to download a payroll report that summarizes most of the information you’ll need. If you’re a sole proprietor, you will need to provide a completed Schedule C for 2019. If you are applying with a lender you do not have an existing banking relationship with, you’ll also be asked to provide documentation to prove your identity and your business’ existence. Requirements will differ from lender to lender.

Further reading: Documents Required to Apply for the Paycheck Protection Program

Can I apply to the PPP through more than one lender?

Yes! There is no harm in applying through more than one lender. Whoever processes your application first will receive an SBA approval number for your business (if you qualify for the loan). This number is called a PLP. The SBA will only issue one PLP for each Tax ID, meaning there is no chance you will accidentally get approved for two PPP loans.

If you are approved for a PPP loan, your application with the other lenders will eventually be rejected, so it’s best to withdraw your application from the other lenders once you’ve been approved.

So far, there has been no guidance issued by the Treasury or SBA stating that you can only apply through one lender at a time. In fact, lenders are encouraging businesses to apply through multiple lenders, to increase their chances of getting processed in time.

What should I do if my lender stops giving PPP loans?

If you’re applying after April 15, you may get denied a PPP loan just because the initial $359 billion PPP fund has been depleted. If that’s you, we recommend getting your application prepared now so that when more funds are made available, you’ll be the first in line.

More COVID-19 resources

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

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