Program Summary

The PPP is a federal loan program administered by the Small Business Administration (SBA) that is part of the stimulus package known as the CARES Act. PPP loans help small- and medium-sized businesses affected by the COVID-19 pandemic by assisting with covering costs related to payroll and certain other operating expenses.

Major PPP Milestones

  • May 4, 2021: SBA has reported that Paycheck Protection Funds are no longer available and they have stopped accepting new applications as of 05/04/2021
  • March 31, 2021: Legislation has been signed that will extend the Paycheck Protection Program (PPP) until May 31, 2021. All applications must be received by the Small Business Administration (SBA) by the end of business on May 31st. SBA will then have until June 30, 2021 to process and approve all loans. In order for the bank to process your application prior to the deadline we must have a complete application by the end of business May 21, 2021.
  • December 27, 2020: A second stimulus package is signed into law, providing an additional $284.45 billion in funding for PPP

Most Recent Updates

December COVID Relief Bill and the Paycheck Protection Program

First Draw Loans Businesses that did not receive a PPP Loan in 2020 are eligible for a new First Draw Loan

  • Maximum loan amount of $10,000,000
  • Loan amount is based on average monthly payroll costs from either 2019 or 2020 and multiplied by 2.5
  • Must have less than 500 employees
  • Loan term of 5 years with an interest rate of 1%
  • Funds must be used for an eligible purpose within an 8-24 week covered period
  • No payments are required until 10 months after the end of the covered period
  • Loans can be fully forgiven if proceeds are used for an eligible purpose and employee & compensation levels are maintained

Second Draw Loans Businesses that received a PPP Loan in 2020 are eligible for a new Second Draw Loan

  • Maximum loan amount of $2,000,000
  • Loan amount is based on average monthly payroll costs from either 2019 or 2020 and multiplied by 2.5 for most businesses and any business that has a NAICS Code starting with 72 the multiplier is 3.5 times
  • Must have less than 300 employees
  • The business must demonstrate a reduction of at least 25% of their gross receipts in at least one quarter in 2020
  • Loan term of 5 years with an interest rate of 1%
  • Funds must be used for an eligible purpose within an 8-24 week covered period
  • No payments are required until 10 months after the end of the covered period
  • Loans can be fully forgiven if proceeds are used for an eligible purpose and employee & compensation levels are maintained