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PPP Loans

Paycheck Protection Program (PPP)

Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) is a federal loan program through the U.S. Small Business Administration (SBA) aimed at helping small businesses who have been impacted by Coronavirus retain their workforce. 

In January 2021, The SBA reopened the Paycheck Protection Program (PPP) for First Draw Loans. The new round of PPP also brought new changes, including expanding the list of eligible expenses, setting aside money for smaller lenders.

This new round also is allowing some borrowers to apply for a second PPP loan. This round of financing is called “Second Draw”. Certain eligible borrowers that previously received a PPP loan may apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.

Note: Early March 2021, The SBA released a revised loan calculation formula for Form 1040, Schedule C sole proprietors, independent contractors, and self-employed individuals using gross income instead of net income. Schedule C PPP Loan Applications are available for First and Second Draw Loans.

First Draw PPP Loans

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.

First Draw Full Forgiveness Terms
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: 
  • Employee and compensation levels are maintained;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.
Who Can Apply
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. Business needs to have been in operation on 2/15/2020 to be eligible.

Reapplying and Loan Increases
Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.

How and When to Apply
Borrowers can apply for a First Draw PPP Loan until May 31, 2021. To start the application process, please fully complete the First Draw Application or the Schedule C First Draw Application and submit through our secure email. Address your email to our SBA central email: sbarelief@couleebank.net

Second Draw PPP Loans

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. 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.

Second Draw Full Forgiveness Terms
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: 
  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.
Targeted Eligibility
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.
Maximum Loan Amount and Increased Assistance for Accomodation and Food Service Businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector, the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

How and When to Apply
Borrowers can apply for a Second Draw PPP Loan until May 31, 2021. To start the application process, please fully complete the Second Draw Application or the Schedule C Second Draw Application and submit through our secure email. Address your email to our SBA central email: sbarelief@couleebank.net. 


Regularly visit the SBA website or www.treasury.gov for guidance and the most current updates. 

If you have any additional questions, please contact your Business Banker.