Paycheck Protection Loan Program (PPP)

The Paycheck Protection Program established by the CARES Act is implemented by the Small Business Administration with support from the Department of the Treasury. The effective period began March 27, 2020 through August 8, 2020. The Economic Aid to H

Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees-including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors-can apply. Entities with more than 500 employees in certain industries that meet SBA's alternative size standard or SBA's size standards for those particular industries can also apply. 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.

Additional information is available on SBA's website at www.sba.gov

Not for Profit Entities and Small businesses that meet the size and eligibility standards www.treasury.gov

In 2020 Loan proceeds may only be used for payroll costs; payments of interest on any business mortgage obligation, rent and/or utilities; interest on any other business debt obligations that were incurred before February 15, 2020; and/or to refinance SBA Economic Injury Disaster Loan (EIDL) loans made from January 31, 2020 through April 3, 2020. Payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. Other However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116-127). In 2021 First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

Initially in 2020, participating lenders were authorized to approve loans under the PPP program beginning April 3, 2020 through June 30, 2020, or until funds made available for this purpose are exhausted, whichever occurs first. In 2021, participating lenders are authorized to approve loans under the PPP program for the first draw loans beginning January 11, 2021 through May 31, 2021, or until funds made available for this purpose are exhausted, whichever occurs first. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from community financial institutions starting on January 13, 2021. The PPP will open to all participating lenders for Second Draw PPP Loans shortly thereafter.

SBA provides approval notification to participating lender who provides a commitment letter and loan to the applicant.

Initial loan distribution period June 30, 2020 or when funds are exhausted whichever is first. 2021 loan distribution period January 11, 2021 through June 30, 2021 or when funds are exhausted whichever is first for both the first draw loans and second draw loans.

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