SBA - Paycheck Protection Program (PPP) by Golden Bank
If your business has been impacted by COVID-19, the CARES Act's SBA Paycheck Protection Program can help you through this challenging time.
New federal relief legislation known as the Economic Aid Act has authorized the Small Business Administration (SBA) to approve additional Paycheck Protection Program (PPP) loans. The Economic Aid Act extended the authority to make PPP loans through May 31, 2021.
The Paycheck Protection Program (PPP) of the U.S. Small Business Administration is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks or 24 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. You can find additional information about the program at the SBA website www.sba.gov
Brief First Draw PPP Loan Information:
Businesses that have not previously received a PPP loan may apply for a First Draw PPP loan. The program is available through May 31, 2021.
- Eligible Businesses:
- All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries.
- Loan Amount:
- There is a cap of $10 million dollars per business for this loan.
- Loan Forgiveness:
- The applicant can apply for loan forgiveness if at least 60 percent of PPP loan proceeds were used for payroll costs and 40 percent were used on eligible non-payroll costs in the duration of 8 weeks or 24 weeks following the disbursement date of the loan origination. 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.
- When to Apply:
- Starting January 11, 2021, small businesses and sole proprietorships, independent contractors and self-employed individuals can apply.
Brief Second Draw PPP Loan Information:
Businesses that have already received a first draw PPP loan and have used, or will use, the full amount of the First Draw PPP loan on eligible expenses on or before the expected date on which the Second Draw PPP loan is disbursed to the applicant. The program is available through May 31, 2021.
The second PPP loans are generally subject to the same terms, conditions and requirements as First Draw PPP loans except for additional eligibility requirements which are not limited to the following:
- Eligibility Requirements:
- Business that employs 300 or fewer employees
- Business has experienced a revenue reduction of 25% or greater in 2020 relative to 2019
- Loan Amount:
- Maximum loan amount is $2 million
- When to Apply:
- Starting January 13, 2021, small businesses and sole proprietorships, independent contractors and self-employed individuals can apply
You may visit the SBA website www.sba.gov for full details of eligibility and restrictions of the program.
How to Prepare and Apply
- For preparation of the loan request, you may want to contact your accountant, attorney or financial advisor.
- To apply through Golden Bank,
- Contact Golden Bank Lending Department for submission procedure.
- You will need to an active Golden Bank business checking account or open one at any Golden Bank locations.