Notice: Paycheck Protection Program has reopened
More than $130 billion in Paycheck Protection Program funding remains for small businesses impacted by COVID-19. Here’s what you need to know.
- The new deadline to apply is August 8, 2020. Check with your local banker to start the application process.
- Nonprofits and faith-based organizations, as well as sole proprietors, independent contractors, and those who are self-employed are all eligible. To qualify for forgiveness, at least 60% of the loan must be spent on payroll within 24 weeks of disbursement.
The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program’s extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.
Paycheck Protection Program Loan Information
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness.
How To Apply
You can apply through any existing SBA 7(a) lender or any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. View a list of lenders participating in the Paycheck Protection Program by state.
If you wish to begin preparing your application, you can download a copy of the PPP borrower application form (revised June 24, 2020) to see the information that will be requested from you when you apply with a lender.
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).
o PPP loans have an interest rate of 1%.
o Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
o Loan payments will be deferred for six months.
o No collateral or personal guarantees are required.
o Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
• Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
• Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 24-week period after receiving their PPP loan
• Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
• Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
• Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
List of Participating Banks in Pike County
United Community Bank – Pittsfield
Farmers State Bank – Pittsfield
Central State Bank
CNB Bank and Trust
Great Rivers Bank – Pittsfield
Great Rivers Bank – Barry
FNBG – Pittsfield
FNBG – Griggsville
Phone (217) 833-2329
Map of SBA Eligible Lenders – This link will help you find other local lenders that can assist you through the process
For more information regarding the SBA Paycheck Protection Program visit: https://www.sba.gov/paycheck-protection-program