sba: paycheck
protection program

Paycheck Protection Program (PPP) Round 2

In an effort to further support businesses and organizations impacted by the Covid-19 pandemic, new federal legislation was signed into law on December 27, 2020. This new legislation allocates $284 billion in funding for the Small Business Administration (SBA) to offer additional Paycheck Protection Program (PPP) loans to businesses in need.

The Paycheck Protection Program loan portal opened on Monday, January 11, 2021 at 9:00 AM, initially accepting First Draw PPP loan applications. For more information regarding First Draw and Second Draw Loans, please continue below.

Please visit this page often as we will continually make updates as more instruction is released by the SBA. 

 

Who Is Eligible

If your business did not receive any funds via the first round of PPP, either due to not completing an application or completing an application but returning the funds, then please complete the First Draw Application and process. 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. 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.

If your business has utilized funds via the first round of PPP, but have had the loan forgiven or paid down/off, then please complete the Second Draw Application and process. 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. 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.

First Draw Loans

 

Second Draw Loans

Supplemental Materials

Thank you for allowing Trustar Bank the opportunity to provide you this vital resource. Our dedicated PPP Rapid Response Lending Team is ready to assist you with this newest round of PPP loans.

Please contact us with any questions:
Steve Collatie at 571-523-4458
Bruce Wilmarth at 571-523-4457
Lee Boyle at 571-523-4465
Chris Broad at 571-523-4459

 

Paycheck Protection Program Guidance

The Paycheck Protection Program Flexibility Act of 2020 was signed into law on June 5, 2020. H.R. 7010 provides additional guidance related to deferral and maturity timeframes and provides greater clarification to several key terms stated within the original CARES Act. Trustar Bank will continue to update our clients as guidance is provided by the SBA as to how they will implement the defined changes under the new law.

SBA & Treasury have recently released additional guidance: 

For more information and updates, visit SBA.gov/PaycheckProtection or Treasury.gov/CARES