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PPP Resources

These program highlights apply to many borrowers, but there are some exceptions. You may want to consult your accountant, attorney or other trusted advisors prior to applying. For full program details, visit SBA.gov and Treasury.gov.

 

You care about your business. And we do too.

From origination to forgiveness, Five Star Bank is here to support our Paycheck Protection Program (PPP) loan customers in every step of the relief process. In late 2020 Congress passed additional legislation to provide critical pandemic aid to American businesses, which includes the extension of the Paycheck Protection Program.

Have additional questions?  Give us a call.


To help you navigate through the recently released guidance and regulations, here's what you need to know:

Updated as of January 9, 2021.

Summary of eligibility and terms1

General Eligibility

Changes to Loan Forgiveness

Loan Terms

First-time PPP Loan

Second-Draw PPP Loan

Small Businesses that have not more than 500 employees2

Small Businesses with 300 or fewer employees

List of eligible expenses has been expanded

First-time borrowers may receive loans up to 2.5x average monthly payroll costs in (i) the one year prior to loan origination or (ii) calendar year 2019, up to $2 million

501( c)(6)s, housing cooperatives, direct marketing organizations, other types of organizations, seasonal employers

Have received a First Draw PPP Loan

Simplified process implemented for loans $150,000 or less

Hotels and restaurants may receive loans up to 3.5x average monthly payroll costs


Have experienced a revenue reduction in 2020 relative to 2019


Seasonal employers may calculate their maximum loan amount based on any 12-week period between Feb. 15, 2019 and Feb. 15, 2020.


Have spent or will spend the full amount of First Draw PPP Loan on eligible expenses on or before the expected date of the Second Draw


Businesses not in operation for the year prior to February 15, 2020 may calculate maximum loan amount based on average monthly payroll costs for the period they were in operation

1 Small Business Administration Interim Final Rules for Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act and Business Loan Program Temporary Changes; Paycheck Protection Program Secondary Draw Loans

2 Or are small businesses as defined by the SBA size standard for the borrower’s industry, per physical location and that are majority owned or controlled by newspaper publishers, radio and TV broadcasters, or public broadcasters


New Funding for First and Second Draw Loans

The Paycheck Protection Program has been extended to March 31st, 2021. PPP Loans are generally available to small businesses, independent contractors, self-employed individuals, and sole proprietors. In addition, new guidelines expand eligibility to generally include:

  • Businesses that have not more than 500 employees3
  • Housing co-ops with less than 300 employees
  • Certain trade associations and chambers of commerce, nonprofits, states, or state instrumentalities that engage in destination or tourism marketing or providing live events (destination marketing organizations)4,5
  • Seasonal employers

Borrowers with an existing PPP loan may also be eligible for a Second Draw PPP loan6.
Customers interested in applying for a First or Second PPP Loan with Five Star Bank are encouraged to visit our online application portal.
 
3 Or the SBA size standard for the borrower’s industry, per physical location and that are majority owned or controlled by newspaper publishers, radio and TV broadcasters, or public broadcasters
4 501(c)(6) organizations
5 Must (i) receive less than 15% of receipts from lobbying activities; (ii) have lobbying activities make up less than 15% of their activities; (iii) have less than $1 million in lobbying costs for the preceding tax year; and (iv) have fewer than 300 employees.
6 Small businesses with 300 or fewer employees that have sustained a 25 percent revenue loss in any quarter of 2020 compared to the same quarter in 2019 may apply for a second PPP loan, up to a maximum of $2 million. Eligible entities must also have used or will use all of their first PPP loan. For loans up to $150,000 the eligible entity may submit a certification attesting to the applicable revenue loss. Eligible entities that submit a certification must produce adequate documentation showing the entity met the revenue loss standard prior to submitting an application for forgiveness
 

Expansion of Forgivable Expenses1

In addition to payroll, rent, mortgage interest, and utilities, Paycheck Protection Program funds may also be used on additional forgivable expenses, including:
  • Business software, Cloud computing services, or payroll processing
  • Costs related to property damage, vandalism, or looting due to public disturbances in 2020
  • Payments to suppliers that are essential to the business’ operations
  • Operating or capital expenses to comply with public health directives, including the installation of ventilation systems or physical barriers and the purchase of personal protective equipment

1 Small Business Administration Interim Final Rules for Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act and Business Loan Program Temporary Changes; Paycheck Protection Program Secondary Draw Loans
 

Changes to Loan Forgiveness1

Applications for loan forgiveness for PPP loans up to $150,000 have also been simplified. Please be ready to share the following information with our team:
  • Describe the number of employees you were able to retain because of the PPP loan, the estimated amount of the loan spent on payroll, and the total loan amount.
  • You will also be required to attest that you accurately provided this certification complied with all program requirements, and retain records proving compliance with program requirements for up to four years.
To begin the application process for loan forgiveness, please contact your relationship manager.

1 Small Business Administration Interim Final Rules for Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act and Business Loan Program Temporary Changes; Paycheck Protection Program Secondary Draw Loans


Interested in a PPP loan

with Five Star Bank?