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Small Business Loan Eligibility: Which Documents Do You Need?

Amid these unprecedented times, small business owners are applying for critical funding and loan COVID-19 programs.

One of the biggest forms of financial aid is the Paycheck Protection Program (PPP). This is authorized by the U.S. Small Business Administration (SBA). This program, now in its second round of funding, allows recipients to qualify for a loan up to $10 million. Loans are based on eight weeks of prior average payroll with an added 25% of that amount. This program also offers small businesses a six-month deferment period for loan payments. In addition, the SBA will forgive a portion of loan proceeds. The forgiven proceeds are those used to cover the first eight weeks of payroll for businesses may to maintain their workforce.

What Do I Need To Apply For A Small Business Loan?

As business owners start to apply for PPP and additional small business loan funding, many may need to provide additional documentation. Lenders require certain documents before entrepreneurs can be approved for a small business loan.

What if you don’t know which documents you need? You might feel frustrated trying to figure which paperwork to file. In addition, lenders are encouraging those that need PPP assistance to apply quickly. The sooner they apply, the faster they may qualify for critical funding relief. If you don’t have the proper documents, it’s easy to feel worried you won’t be able to obtain them fast enough for these financial relief efforts.

How Do I Get These Documents?

Fortunately, our team at MyCorporation is here to help. You may need to provide the following documents to prove your business’s eligibility during the application process.

  • Certified Copies of Documents
  • Employer Identification Numbers (EINs)
  • Minutes and Bylaws

Here’s what each document does to benefit your business. In addition, we will share how MyCorporation’s discounted filing services can help you save money on each document and quickly receive this required legal documentation.

Certified Copies Of Documents

What are certified copies?

Certified copies are copies of any document that an entity has filed with the state. Therefore, these copies are then officially certified by that state. It is an official state-issued certificate verifying that the document referenced is an accurate copy of the original state-filed document.

Why do businesses need certified copies to apply for a small business loan?

There are several situations where specific entity formations, including limited liability companies (LLCs) and corporations, may need to provide certified copies.

For example, if the entity intends to foreign qualify their business the local Secretary of State may request certified copies. This acts as verification that the business is in compliance. It has met all of its tax and filing obligations.

In addition, it’s possible that a small business owner or entity can lose their original corporate documents. Therefore, having certified copies acts as a much-needed backup to maintain within internal company records.

Certified Copies Original Price: $99.

Now: $79 using MyCorporation coupon code LOAN20 during checkout.

Employer Identification Number (EIN)

What are EINs?

Employer identification numbers (EINs) have a variety of different uses for small businesses. This nine-digit tax ID allows companies to hire employees. In addition, you may use an EIN to open a business bank account and establish a credit profile. You may also use an EIN if you plan to change your organization type to a different entity formation.

Why do businesses need EINs to apply for a small business loan?

The Internal Revenue Service issues EINs out to small businesses. Generally, it is encouraged that a small business applies for an EIN after it has filed for a legal formation. The IRS will then assume your business is in existence after you apply for an EIN, allowing it to uniquely identify employer tax accounts. As a result, small businesses are able to file their business income tax returns.

EIN Original Price: $79.

Now: $59 using MyCorporation coupon code LOAN20 during checkout.

Minutes and Bylaws

What are minutes and bylaws?

Corporations must maintain and update corporate minutes and bylaws. However, minutes and bylaws do not have the same function.

Minutes are notes taken during meetings. A specific person, for example, is appointed by the corporation to take minutes. These minutes must be legible, written in chronological order of occurrence, and record all important information and details. Taking clear, articulate minutes act as a point of reference for those in the corporation.

Bylaws are a detailed set of rules drafted by corporations. Typically, the corporation’s founder or board of directors creates bylaws. These rules specify the corporation’s internal management structure. Key details are noted in bylaws including the rules for electing directors to the board and how to organize meetings. In addition, bylaws will cover the rights and responsibilities of owners and how to conduct an annual meeting.

Why do businesses need minutes and bylaws to apply for a small business loan?

All corporations must take and update corporate minutes and bylaws before the end of each year.

What happens if you do not update minutes and bylaws? Your company may risk falling out of compliance and into bad standing with the state. Similarly, your corporation may face penalty fees and even involuntary dissolution.

Minutes and Bylaws Original Price: $99.

Now: $79 using MyCorporation coupon code LOAN20 during checkout.

Let MyCorporation Help You With Small Business Loan Assistance!

We’re dedicated to supporting small businesses looking to take advantage of the SBA’s relief efforts. Our filing services — covering certified copies, EINs, and minutes and bylaws — do more than provide discounts. We can help complete any required paperwork and obtain these documents for your business fast.

Save $20 by using the coupon code LOAN20 during checkout for certified copies, EINs, and minutes and bylaws filing services. Contact us if you have any questions at 877-692-6772 or visit us at mycorporation.com to begin.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.

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    • Hi Avdhoot! The coupon code is LOAN20 which may be redeemed for orders for certified copies, EINs, and minutes and bylaws upon checkout. Please let us know if you have any other questions.

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