ppp application portal.
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. The PPP loan program has been extended to May 31, 2021. The Economic Aid Act also includes changes to the SBA 7(a) loan program that may be of interest to your business.
How and When to Apply for PPP Loan Forgiveness
You may be eligible for PPP loan forgiveness once all loan proceeds you’re requesting forgiveness for, have been used. You can apply for forgiveness any time up to the maturity date of the loan. We encourage to contact us to ensure a full understanding of the rules, the accuracy of your forgiveness application and to collect the correct documentation.
Please note: Failure to upload supporting documents will delay loan processing.
Full Forgiveness Terms
First Draw Forgiveness:
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
· Employee and compensation levels are maintained
· The loan proceeds are spent on payroll costs and other eligible expenses, and
· At least 60 percent of the proceeds are spent on payroll costs.
Second Draw Forgiveness:
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
- The loan proceeds are spent on payroll costs and other eligible expenses, and
- At least 60% of the proceeds are spent on payroll costs
First Draw Eligibility:
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.
Second Draw Eligibility:
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
Ensuring Access for All
SBA continues to call upon its lending partners, including Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods.
Stay up to date with further information as we move through this next round of PPP lending.