PAYCHECK PROTECTION PROGRAM (PPP)
Posted
on Thursday, January 28, 2021
in
Banking Information
The Paycheck Protection Program (PPP) is back. The Consolidated Appropriations Act, 2021, provides $284 billion to be used for first and second Paycheck Protection Program forgivable small business loans. The United States Small Business Administration (SBA) has issued the necessary rules for banks and borrowers to follow, and we are currently taking applications.
Please contact the loan officer you are working with or call the bank for more information.
In addition to your application, you will be asked to provide documentation of your average monthly payroll and the number of full-time employee equivalents on February 15, 2020. The rules allow you to use either 2019 or 2020 to determine average monthly payroll depending on which is more favorable. The following documentation is commonly provided:
- IRS Form W3;
- IRS Form 941 and/or Quarterly Employees Contribution to Payroll Report for all of 2019 or 2020 (if completed);
- Payroll information on other payroll costs (e.g. retirement, insurance, which are typically obtained from a Payroll Service or accountant; and
- A Payroll statement or similar document from the pay period that covered February 15 2020, to establish you were in operation on that date.
- NOTE: Borrowers who are self-employed or independent contractors should provide a 2019 or 2020 Tax Return with all schedules including Schedule SE.
- Additional information may be necessary depending on the circumstances.
Additional information on PPP Loans:
PPP First Draw Loans Overview
PPP Second Draw Loans Overview
PPP FAQ (updated 1/19/2021)
NAICS Code Search
SBA.gov - PPP Website