Paycheck Protection Program

Keeping Businesses Open So We Can Move the Region Forward

How to Apply: Paycheck Protection Program, Round 2

The Paycheck Protection Program is getting a reboot as part of Congress’s latest Coronavirus stimulus package. The $900 billion deal includes $284 billion for a second round of PPP loans.

As you may know, the Small Business Administration issued Interim Final Rules in early January pertaining to the 2nd round of funding for the Paycheck Protection Program (PPP).

As your trusted financial institution, we wanted to make you aware that we are once again participating and we are now accepting applications.

First Draw PPP Loans

Businesses that did not receive a PPP loan during Round 1, and have 500 or fewer employees are eligible, however there are exceptions.

Complete information on terms and eligibility requirements for the First Draw PPP Loan can be found on the SBA website.

Documentation needed to apply for a First Draw PPP Loan:

  • 2019 or 2020 IRS quarterly 940, 941, or 944 payroll tax reports
  • 2019 or 2020 payroll reports for a twelve-month period, which show the following:
    • Gross wages for each employee, including officer(s) if paid W-2 wages
    • Paid time off for each employee
    • Vacation pay for each employee
    • Family medical leave for each employee
    • State and local taxes assessed on an employee’s compensation
  • Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan.
    • Include all employees and the company owners.
  • Document the sum of all retirement plan funding that was paid by the company owner(s);
    • Do not include funding that came from employees out of their paycheck deferrals
    • Include all employees and the company owners
    • Include 401K plans, Simple IRA, SEP, IRA’s
  • K-1’s for General Partnerships
  • 2019 or 2020 Form 1040 schedule C with supporting 1099- MISC detailing nonemployee compensation, invoices, bank statement, or book of record that establishes are you self-employed.  You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.
  • 2019 or 2020 Form 1040 schedule F.  You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020

Second Draw PPP Loans

The Paycheck Protection Program now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.

Business must have no more than 300 employees and demonstrate a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Complete information on terms and eligibility requirements for the First Draw PPP Loan can be found on the SBA website.

Documentation needed to apply for a Second Draw PPP Loan:

  • 2019 or 2020 IRS quarterly 940, 941, or 944 payroll tax reports
  • 2019 or 2020 payroll reports for a twelve-month period, which show the following;
    • Gross wages for each employee, including officer(s) if paid W-2 wages
    • Paid time off for each employee
    • Vacation pay for each employee
    • Family medical leave for each employee
    • State and local taxes assessed on an employee’s compensation
    • Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan
      • Include all employees and the company owners
  • Document the sum of all retirement plan funding that was paid by the company owner(s)
    • Do not include funding that came from employees out of their paycheck deferrals
    • Include all employees and the company owners
    • Include 401K plans, Simple IRA, SEP, IRA’s
  • K-1’s for General Partnerships
  • 2019 or 2020 Form 1040 schedule C with supporting 1099- MISC detailing nonemployee compensation, invoices, bank statement, or book of record that establishes are you self-employed.  You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.
  • 2019 or 2020 Form 1040 schedule F.  You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020
  • Documentation demonstrating at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020;
    • 2019 and 2020 federal tax return
    • 2019 and 2020 company prepared income statements and bank statements
    • 2019 and 2020 quarterly company prepared income statements and bank statements

Steps You Can Take Now

  1. Begin gathering your applicable documentation as outlined above.
  2. Contact your Relationship Manager or call our Customer Care Center at 866-378-9500 or email us at [email protected]

We’re here to help!