SBA PAYCHECK PROTECTION PROGRAM
FIRST AND SECOND DRAW
The SBA PPP Loan is a loan designed to provide a direct incentive for small business to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The following entities affected by Coronavirus (CONVID-19) may be eligible:
Any small business concern that meets SBA's standards
Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec.31(b)(2)(C) of the Small Business Act)
Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
Sole Proprietors, independent contractors, and self-employed persons.
January 2021 Update Second Draw Loans
Congress passed a Second Draw PPP loans for entities affected by Coronavirus, eligible borrowers are:
Entities with fewer than 300 employees
Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019
Stock not traded on a national exchange
501(c)(6) are eligible, but any entity for which lobbying comprises more than 15% of receipts or activities is not eligible
Maximum loan. 2.5 times average monthly payroll or $2 million, whichever is less. Businesses in the restaurant and hospitality industries are eligible for loans for 3.5 times average monthly payroll.
Eligible expenses. The bill expands to include PPE expense, costs associated with outdoor dining, and supplier costs, but payroll expenses must still comprise no less than 60 percent of eligible expenses.
LOAN DETAILS AND FORGIVENESS
The SBA PPP Direct Forgiveness Portal if for loans that are $150,000 or less and you can apply for forgiveness directly through this site. This link will take you to an external site outside of the Bank.