Business

COVID-19: Business Loan Relief

COVID-19: Resources for Your Business

Paycheck Protection Program


The SBA reopened the Paycheck Protection Program (PPP) for First and Second Draw Loans. First and Second Draw PPP Loans can be used to help fund payroll costs. 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, certain supplier costs, and expenses for operations.

Who Can Apply?
Small entities including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, independent contractors, 501(c)(6) organizations and housing cooperatives could be eligible to apply. The size of the business is based on the number of employees, type of business, and if the business has already received PPP loan funds before December 27th, 2020. 

Loan Forgiveness
First and Second Draw PPP Loans made to eligible borrowers will qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement 1) employee and compensation levels are maintained; 2) the loan proceeds are spent on payroll costs and other eligible expenses; and 3) at least 60 percent of the proceeds are spent on payroll costs.


The SBA has been issuing new guidance and clarifications to financial institutions on a frequent basis, so this information is subject to change. For more information concerning the Paycheck Protection Program, please refer to the US Department of Treasury
 
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First Draw Loans

Eligible entities that have not yet received a PPP loan prior to December 27, 2020 and meet the SBA Size Standards based on industry, may apply for a First Draw PPP loan. Borrowers who have received a PPP loan prior to December 27, 2020, have not applied for forgiveness, AND did not receive the full amount possible under the PPP loan program may be eligible for an increase in your first PPP loan. If you are interested in an increase, please contact your lender for more information.
 

PPP First Draw Loan Application



Second Draw Loans

A borrower is generally eligible for a Second Draw PPP Loan if the borrower 1) previously received a First Draw PPP Loan and has used the full amount only for authorized uses; 2) has no more than 300 employees; and 3) can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
 
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.



The application deadline for First and Second Draw loans is May 31, 2021. A CSB lender will be available to assist you with the application process. Please contact a CSB Local Expert before completing the application.
 

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