The COVID-19 disease outbreak made a negative impact on the lives of Americans. The small enterprises in income were affected and decreased drastically, after the national emergency was announced on March 13, 2020. Expenses fell in lockstep with sales revenue, expressing lower returns along with attempts to maintain cash flow.
Numerous relief initiatives were established by the CARES Act, such as the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) advances, and Economic Impact Payments (EIP). The PPP became the trademark initiative for small enterprises, with $659 billion permitted for employee retention.
One of its aims was to provide enough cash, so those small enterprises could maintain the payment of their workers rather than stooping to cutbacks or layoffs.
Some other purpose was to provide funds to small enterprises speedily, with little paperwork and by utilizing resources at financial firms. In that regard, Chase agreed to extend approximately 29 billion dollars to 239,000 enterprises via the Paycheck Protection Program.
Chase is the consumer and commercial banking division of JPMorgan Chase & Co. (NYSE: JPM), the world’s top financial services company with $2.6 trillion in assets and operations worldwide. The corporation is a dominant player in banking and finance, consumer and small enterprise banking assistance, corporate banking, monetary transaction processing, and asset management.
JPMorgan Chase & Co., which is an integral part of the Dow Jones Industrial Average, supports a large number of clients in the United States along with several of the biggest and most popular corporate, organizational, and government clients under the J.P. Morgan and Chase brands.
What You Should Know About Chase Lending Through the PPP
- The typical loan amount is $123,000.
- Approximately half of the loans were made to businesses with less than five employees.
- More than 75% of the loans were for less than $100,000.
- More than 40% of the loans were for less than $25,000.
Steps to Apply for PPP Loan Through Chase
- Open a Chase bank account and gain access to your PPP application
- Add or Update Operational Business Data
- Add New Business Information Requirements
- Input or Verify Ownership
- Add or Update Additional Owner Information
- Attach or Verify Documents
- Always check your email for further instructions from our partner or your lender.
Open a Chase bank account and gain access to your PPP application
Open a Chase business checking account online or go to the nearest branch. To apply with this banking platform, you must have an active account. Note that it could take up to ten days after opening an account before you can apply for a PPP loan.
After you’ve created a Chase business checking account, go to the PPP platform and click ‘Edit Application’ to go through your details and fill in any gaps.
Add or Update Operational Business Data
Ensure this portion is completely filled out, then attach importance to the parts listed below.
- Business location: Verify that the information is correct, such as the 5-digit zip code (it is critical that the 5-digit is used rather than the 9-digit).
- Type of business: Check that you’ve chosen the appropriate business type. This has an impact on the paperwork you may be asked to produce.
- Business Tax Identification Number: Verify that you submitted a valid 9-digit tax ID.
- Requested loan amount: The sum of money demanded would have to be 2.5 times the typical monthly payroll costs.
- Worker count: Check that the worker count is between 1 and 500. Sole proprietors and 1099 employees could perhaps enter 1. Because 0 is not an acceptable entry.
Add New Business Information Requirements
You must fill out these new necessary details on the application’s “Business Information” page.
- Date of the company’s inception: Everything should coincide with the date on your Secretary of State filing.
- Industry: Type your industry and choose it from the range of options that appears. If your industry is not listed, choose the best comparison. Note that without an industry, applications cannot be accepted by the SBA.
Input or Verify Ownership
Verify the candidate’s ownership percentage on the first “Owner Information” page. The proportion of ownership would have to be higher than zero.
Add or Update Additional Owner Information
Enter or verify all essential data for additional owners (if any). You should include details for anyone who owns a minimum of 20% of the company. All segments on the “Additional Owner” page, such as the date of birth, should always be filled out.
You will also require an original copy of each owner’s driver’s license, both front, and back. In some cases, you will be prompted to submit the duplicates in the “Documents” section.
Attach or Verify Documents
To build a comprehensive PPP application, you should attach the necessary papers or verify that everything submitted is accurate, and add any data you’re forgetting on the “Upload Your Documents” page. Please submit the preceding attachments if they haven’t already been introduced to your application:
- A driver’s license is required for the owners who own 20% or more of the companies.
- An original copy of the front and back of each owner’s legitimate driver’s license. Make sure that the driver’s license expiry date is not near.
- Acceptable Payroll Documents (ranked in order of apparent priority by the SBA)
- For businesses seeking a PPP loan:
- 941 Quarterly Tax Returns (2019, 2020 Q1)
- 944 Annual Tax Returns (2019)
- Payroll Register for the previous year
- Bank statements from the previous 12 months
- Individuals who are 1099 Independent Contractors or self-employed and are trying to apply for a PPP loan:
- Schedule C 1099s on IRS Form 1040 (under which you were paid)
- 2019 income and expense statements
- For all candidates:
- Bank statements for business accounts
- Any other documentation that can demonstrate your payroll expenditures
Always check your email for further instructions from our partner or your lender.
Chase might send you a confirmation email whenever your application has been certified and completed. When they accept your application and send you an email with a PLP number (preferred lending partner number), you are in the US Small Business Administration’s loan system, and Chase would be the only lender who can grant you a PPP loan.
If you intend to keep other alternatives for PPP lenders, do not finish and authenticate your application with Chase. To ensure that you can get your loan, review the above emails and adhere to the instructions. If you are authorized, you will be required to provide Chase with a copy of a voided check to indicate where the funds should be directed.
Chase offers varieties of products to almost half of U.S. households. Chase online enables you to control your accounts, visualize statements, track activity, pay bills, and transfer funds from your convenient location.
It should be noted that Chase does not plan to benefit from PPP and continues to remain dedicated to assisting initiatives that assist small enterprises, particularly minority-owned enterprises and disadvantaged populations affected financially by the global epidemic.