Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) recently introduced by the Federal government and administered by the Small Business Administration is an unprecedented relief package for small businesses across the country. We have worked quickly and thoroughly to establish a new relationship with SBA in order to assist our stockholders and communities assessing their needs.

The new PPP legislation has addressed qualification issues and farmers and ranchers who operate as a sole proprietor may qualify for assistance in the First Draw of the PPP.

We will continue to monitor all regulatory guidance applicable to the PPP and update any changes to our status on our website.

The Paycheck Protection Program (PPP) was announced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP is a federal program that helps small businesses keep workers employed. The loans may be forgiven if borrowers keep all employees on payroll and maintain compensation levels for eight to twenty-four weeks after the loan is made and the loan funds are used for specific qualified expenses, including payroll, rent, mortgage interest, or utilities. We recommend visiting with your accountant to calculate your qualified payroll amount. Our staff remain available to helping you through these evolving times.

SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021.

The following entities affected by Coronavirus (COVID-19) may be eligible:

• Sole proprietors, independent contractors, and self-employed persons
• Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
• 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) with the greater of:
  • 500 employees, or
  • That meets the SBA industry size standard if more than 500
• 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

Our resource guide contains helpful information about this process but, as always, contact your loan officer or local branch with any questions.

You can apply for a First Draw PPP Loan until May 31, 2021.

The Paycheck Protection Program (PPP) 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.

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

Our resource guide contains helpful information about this process but, as always, contact your loan officer or local branch with any questions.

You can apply for a Second Draw PPP Loan until May 31, 2021.