COVID-19 Updates
Paycheck Protection Program (PPP) Resources & PPP Loan Forgiveness Information
Updated March 15, 2021
Paycheck Protection Program Resumes
The SBA announced that it has resumed accepting PPP loan applications. The information provided below is a summary of the updates and resources for both first-time and second-time borrowers. For more information, please visit the PPP page on SBA.gov.
First-Time Borrowers
This latest update from the SBA allows new borrowers to use 2019 or 2020 for purposes of calculating their maximum loan amount. The last day to apply for and receive a PPP loan is extended to March 31, 2021. In general, borrowers can have no more than 500 employees and their business must have been in operation as of February 15, 2020. The first loan can be up to 2.5 times the business’ average monthly payroll costs, up to a $10 million loan maximum.
*For borrowers who file IRS Form 1040, Schedule C
Second-Time Borrowers
Businesses can apply for a second loan whether or not they have requested Forgiveness. All businesses applying for a second PPP loan must show that their business revenue declined by at least 25% in 2020 compared to 2019.
- Download Second Draw Borrower Application 2483-SD-Schedule C (3/3/21)*
- *For borrowers who file IRS Form 1040, Schedule C
- The following borrowers can reapply or request an increase in their PPP loan amount:
- a. If a borrower returned all of a PPP loan, the borrower may reapply for a PPP loan in an amount the borrower is eligible for under current PPP rules.
b. If a borrower returned part of a PPP loan, the borrower may reapply for an amount equal to the difference between the amount retained and the amount previously approved.
c. If a borrower did not accept the full amount of a PPP loan for which it was approved, the borrower may request an increase in the amount of the PPP loan up to the amount previously approved.
- a. If a borrower returned all of a PPP loan, the borrower may reapply for a PPP loan in an amount the borrower is eligible for under current PPP rules.
Updated January 20, 2021
Paycheck Protection Program: Loan Forgiveness
In response to the overwhelming impact of COVID-19 on small business owners, the Coronavirus Aid, Relief & Economic Security (CARES) Act, was passed by Congress and signed into law in order to provide federally-backed funding to small businesses and nonprofits in need. On January 19, 2021, the SBA issued revised 3508 and 3508EZ Forms. The SBA also released a revised 3508S Form, which is now for loan amounts of $150,000 or less. To apply for forgiveness of your PPP loan, you (the Borrower) may use the applicable Form and complete the application and submit it to your Lender. Form instructions are now included within each application document, which we have provided for you in the Loan Forgiveness Resources section of this page.
Borrowers must also submit the required supporting documents outlined in the application instructions, including:
Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):
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- Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees
- Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
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- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
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- Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount
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- Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements
- Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
- Business utility payments: Copies of invoices and receipts, cancelled checks or account statements
This list of documents required to be submitted to the Lender is not all-inclusive.
This update is being provided as a convenience. This information does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. Limestone Bank does not assume, and expressly disclaims, any responsibility for these and any future updates to you. You should contact your attorney to obtain advice with respect to any particular legal matter herein. Limestone Bank gives no warranty and accepts no responsibility or liability for the accuracy or the completeness of the information and materials contained herein. All liability with respect to any action taken or not taken based on the content above are hereby expressly disclaimed.
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Below are number of banking services and resources that may be of interest to you as we all do our best to stay safe and healthy.
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