Learning Center

We want to thank you for allowing us the opportunity to assist you with the Paycheck Protection Program! As more information is becoming available, we want to share some important updates.

Second Draw Updates

You may be eligible to apply for a Paycheck Protection Program Second Draw if you meet the following criteria:

• Employ less than 300 employees
• Experienced at least a 25% reduction in revenue in any calendar quarter of 2020, relative to the same period of 2019
• Have used or will use the full amount of the PPP First Draw for eligible expenses

Additional updates include:

• PPP borrowers can set the covered loan period to be any length between 8 and 24 weeks to best meet your business needs
• Covered expenses have been expanded to include operation expenditures, property damage costs, supplier costs and worker protection expenditures 
• EIDL Advance amounts will no longer be subtracted from forgiveness
  • Borrowers who had remaining loan balances associated with EIDL advances after Round 1 forgiveness will receive reconciliation payments. This process is still under construction but we will keep you informed. 

Second Draw Funding Calculations

The PPP second draw calculations are the same as the first draw, with the following exceptions:

• If you are in the hospitality industry, you may be eligible to receive 3.5 times your average monthly payroll costs.
• Schedule F filers are able to calculate program eligibility using Gross revenue figures.

What remained the same?

The basic framework of the PPP Second Draw Program has remained the same.

• At least 60% of your PPP Second Draw must be used for payroll costs. Payments to independent contractors cannot be included in the payroll costs. It is important to note, that you can use ALL of the funds for payroll costs, if necessary. 
• In order to receive maximum forgiveness, you must maintain at least the same number of employees on your payroll on the forgiveness date as you had when you applied.
• Record keeping is key. We recommend that you keep a spreadsheet of all eligible expenses as they are incurred and file copies of any supporting documentation. 
• The loan forgiveness process will mirror that of Round One. 
  • Simplified applications have been proposed for loans under $150,000 but are not yet available.

Next Steps

For your convenience, we are including a link to the PPP Second Draw Application. You can complete this application and return it to us at the bank. Once we receive the completed application, we will submit it to the SBA for approval. Please note:

• You do not have to file your 2020 tax return to document the decreased revenue requirement. You may use other documentation such as Profit and Loss statements or bank statements. We ask that you submit your documentation with your PPP Second Draw application to us to ensure a smooth forgiveness process. 
• We can fill in the PPP First Draw SBA Loan Number when you return the application to us. 
• If you do not know your industry's NAICS Code, we can provide it for you. 

Download Application Form