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SBAThe Economic Aid Act signed in December 2020 provides for additional PPP funding.
The program is broken down in two categories:
For those who did NOT obtain a PPP loan in 2020, your application will be known as a “First Draw” PPP
- Small businesses, nonprofits, tribal businesses, and veterans’ associations that have less than 500 employees and have been negatively affected by the pandemic may be eligible for these loans.
- The loan amount is calculated at up to 2.5x average monthly payroll costs unless the business is classified under NAICS Code 72. If so, the loan amount is equal to 3.5x average monthly payroll
- Loans through the program have a 1.0% interest rate and have payment deferral option of 10 months.
- Loan recipients may be eligible for loan forgiveness
- Business must be presently operational and as of Feb. 15, 2020 and had employees for whom it paid salaries and payroll taxes, medical, dental or vision insurance.
- Loan amounts up to $10 million
- 60-month full payout loan, and payments may be deferred for ten months.
- Unsecured and no personal guarantee
- Borrowers cannot apply for any other programs through the SBA for the same purpose
For those that did received a PPP loan in 2020, your application will be known as a Second Draw PPP. The conditions above apply in addition to:
- You must have used the previous PPP loan for authorized uses. (FLNB will require proof of such use. If you have not provided the bank with your forgiveness application, along with the documentation, we ask that you do so now!)
- The business must show a revenue reduction of at least 25% in any quarter of 2020, compared to the similar quarter of 2019. You may also use annual revenue, 2019 vs. 2020, if the business was open all of 2019. For both, we will need documentation provided.
- The maximum loan amount is $2,000,000
- The business applicant must employ less than 300 employees
- The business was operational prior to February 15, 2020
- The business cannot be permanently closed
- The loan amount remained as equal to 2.5x average monthly payroll costs unless the business is classified under NAICS Code 72. If so, the loan amount is equal to 3.5x average monthly payroll
Other conditions and restrictions apply for both categories. Please contact FLNB at ppp@flnb.com for questions or you may access additional information from the SBA at:
Assistance for Small Businesses
Please complete the form below and we will contact you as soon as possible to finalize your SBA Paycheck Protection Program application.