For 25 years, we've been the partner local businesses turn to when they need support, and we're here for you now when it matters most.
As our communities continue to respond and adapt to the impact and uncertainty surrounding the Coronavirus (COVID-19), we realize that small business owners may want to apply for the third round of the SBA's Paycheck Protection Program.
Below is a list of what we know now, and we will continue updating this list as the SBA shares more information. For specific information on your business and application, please reach out to your banker.
The SBA has not yet confirmed when funds will be available for this round of PPP, but we are prepared to have the customer portal ready to assist customers as soon as funding is made available, which could be as early as January 11, 2021.
Small businesses, nonprofits (501(c)(3)s), Tribal business concerns, and 501(c)(19) veterans’ organizations. While there are some exceptions, generally these must have less than 500 employees to qualify.
Individuals that operate as sole proprietors, independent contractors, or who are self-employed.
Must have been in operation as of February 15, 2020.
Funds can be used for payroll costs, employee health care benefit costs, interest on mortgage obligations, rent and utility payments.
The term of the loan is two years with no payments for the first six months; however interest will continue to accrue during this period.
There is no collateral requirement.
There is no personal guarantee.
While the SBA is likely to issue more guidance on the loan forgiveness process, the borrower will be required to apply for the loan to be forgiven. The amount of the loan forgiveness can be up to the full principal amount of the loan and any accrued interest.
That is, the borrower will not be responsible for any loan repayment if the borrower uses all of the loan proceeds for forgivable purposes and if employee and compensation levels are maintained. The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations, rent payments, and utility costs over the eight-week period following the date of the loan. However, not more than 25% of the loan forgiveness amount may be attributable to non-payroll costs.
We encourage borrowers to keep detailed documentation of the use of the loan proceeds.
We care deeply about you and your business. As we navigate these unusual times together, we're here to be a reliable source of information and to guide you through the PPP application process. Due to eligibility limitations and overall levels of Congressional appropriation, we can't guarantee that the SBA will be able to approve everyone's application, but you can count on us to help however we can. We're here for you.