We're sure you have heard plenty about the Paycheck Protection Program by now, but have you heard the latest news? As a business owner, it's important that you stay as informed as possible. This affects your business and your employees. With that in mind, our bank at the Lake of the Ozarks is here to give you the latest updated information regarding the Paycheck Protection Program or PPP in this week's blog. In the first round of PPP, First Bank of the Lake helped more than 4,000 small businesses gain access to over $500 million of financial relief.
• Demonstrate at least a 25% reduction in gross receipts (to be defined by SBA) in any quarter of 2020 relative to the same quarter in 2019.
Here’s what you need to be eligible for a PPP loan in the new round:
• Employ fewer than a 300 employees per physical location.
• Demonstrate that you have used or will use the full amount of your first PPP loan.
• A business that was not in operation on February 15, 2020 shall not be eligible for an initial PPP loan and a second draw PPP loan.
What else has changed?• Borrowers in industries assigned to NAICS Code 72 are entitled to receive loans up to 3.5x their average monthly payroll costs, during the year prior to the loan or the previous calendar.
PPP Forgiveness: Here's what you need to know.• Borrowers with loans less than $150,000 now have a simplified, one-page application. The SBA has until January 20, 2021 to provide guidelines for this application.
• Forgiveness is now tax-exempt for all borrowers.
• The covered period for expenses has been extended from 8 weeks to 24 weeks.
• Expenses allowable and forgivable are expanded to include certain payments for software, cloud computing expenses, property damage, supplier costs, and worker protection.
We know that small business owners have been eager for another round of Paycheck Protection Program (PPP) and that these funds are vital to your business. While we are unable to predict how quickly the funds may be exhausted, we do expect demand to be high. So, don’t wait. Start your application today!
Do You Have Any Questions About PPP?
We get it. This is A LOT of information to absorb. For more information on PPP2, visit our FAQ page at: https://loans.firstbanklake.com/ppp2/ and learn how to simplify your payroll calculations with a CARES Act Payroll Report by visiting: https://loans.firstbanklake.com/ppp-loan-payroll-calculations/
We've been working diligently to ensure getting a second PPP loan isn't something you have to stress about. Our experienced professionals have decades of experience in the loan industry and we’re committed to helping guide your business through the process of securing the funding you need. Our PPP support team can be reached at 866.806.1644 or by email at email@example.com.
First Bank of the Lake - We Put You First. Four simple words, but they are at the core of everything we do at First Bank of the Lake. They are the difference that sets us apart. Be sure to follow us on our social media channels listed below to stay up to date on our latest announcements.
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