Paycheck Protection Program

Small Business Administration Paycheck Protection Program

Yes we offer PPP loans! For more information on getting a PPP Loan from us, contact pooc.eeseneg@PPP or 585-461-2230.

The Paycheck Protection Program (PPP) was established as part of the CARES Act in response to the economic impact of the COVID-19 pandemic

Congress approved another $284 billion in funding for these loans in the stimulus bill enacted December 27, 2020. Deadline for application:

Members: May 26, 2021

Non-members: May 21, 2021 (must become a member in order to apply)

  • 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, and other expenses for operations
  • Eligible borrowers qualify for full loan forgiveness
  • No personal guaranty or collateral required
  • 1% interest rate
  • No fees charged to borrower
 
In addition, there were a number of enhancements to the program, including:
  • Sole Proprietors and Independent Contractors can noe use gross revenue instead of net revenue to calculate loan amount.
  • Certain qualifying PPP borrowers are able to obtain a forgivable “second draw” PPP loan
  • Expanded Eligibility to include additional organizations, and certain entities who are involved in bankruptcy proceedings
  • Expanded Forgiveable Expenditures 
  • Simplified forgiveness process for PPP loans of $150,000 or less 

Who’s Eligible for PPP Loans?

Eligible small entities, that together with their affiliates (if applicable) can apply
  • Have 500 or fewer employees
  • Nonprofits, veterans’ organizations, tribal concerns
  • Self-employed individuals, sole proprietorships, and independent contractor
  • Housing cooperatives
  • 501(c)(6) organizations

What can I use the funds for?

The proceeds of a PPP loan are to be used for:

  • Payroll costs
  • Costs related to the continuation of benefit programs1
  • Mortgage interest payments (but not mortgage prepayments or principal payments)
  • Rent payments and utility payments
  • Interest payments on any other debt obligations that were incurred before February 15, 2020
  • Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020
  • Covered operations expenditures, such as (but not limited to) business software or cloud computing service that facilitates business operations, product or service delivery, payroll processing, sales and billing functions, or accounting / tracking of supplies, inventory, records and expenses
  • Covered property damage costs
  • Covered worker protection expenditures (e.g., PPE, adaptation to comply with DHS, CDC, OSHA or state and local ordinances relative to COVID-19 protections)
  • At least 60 percent of the PPP loan proceeds shall be used for payroll costs 

 Generally, an applicant should be prepared to submit the following information:

 

I am self-employed AND I have no employees…

I am self-employed AND I have employees…

I’m not self-employed…

  • Form 1040 Schedule C
  • IRS Form 1099-MISC (detailing nonemployee compensation received)
  • Invoice, bank statement, or book of record that establishes that the applicant is self-employed
  • 2020 invoice, bank statement, or book of record to establish that the applicant was in operation on February 15, 2020
  • IRS Form 1040 Schedule C
  • Form 941
  • State quarterly wage unemployment insurance tax reporting forms
  • Evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions, must be provided
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the applicant was in operation on February 15, 2020
  • Form 941 (or other tax forms containing similar information)
  • State quarterly wage unemployment insurance tax reporting forms2,as applicable, or equivalent payroll processor records
  • Evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions, must be provided
  • A partnership must also include its IRS Form 1065 K-1s

 First- and Second-Draw Loans

I am first-time borrower…

I have a PPP loan, but am interested in a second-draw loan…

Can I modify or increase my current PPP loan…

  • Loan amount up to the lesser of $10 million and 2.5x average monthly payroll costs (capped per employee of $100k annualized)
  • The maximum is $10 million, the same as in the original PPP
  • The guarantee percentage is 100%
  • No collateral or personal guarantees will be required
  • The interest rate will be 1%
  • Employ not more than 300 employees
  • Have used or will use the full amount of their first PPP loan
  • Demonstrate at least a 25% reduction in gross receipts in any calendar quarter in 2020 compared to the same calendar quarter in 2019
  • Loan amount up to the lesser of $2 million and 2.5x (or 3.5x for certain borrowers) their average monthly payroll costs
  • A borrower can only receive one Second Draw PPP Loan
  • The guarantee percentage is 100%
  • No collateral or personal guarantees will be required
  • The interest rate will be 1%
  • Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may:
  • Reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds
  • 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

What is the process for Loan Forgiveness?

Applications for forgiveness for PPP Loans up to $150,000 have been simplified.  Small Businesses should be prepared to provide:

  • A description of the number of employees you were able to retain because of the PPP loan
  • The estimated amount of the loan spent of payroll, and the total loan amount
  • Attestation that you accurately provided the information, complied with all PPP requirements
  • Records proving compliance with the Program will need to be retained for up to four years

 


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