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Congress recently passed legislation providing additional PPP funding (termed the "Second Draw Program" or PPP-2). Recent legislation will also make it easier for many current PPP borrowers to request Forgiveness, including a simplified Forgiveness form for PPP Loans of $150,000 or less.
Whether your business had a previous PPP Loan or not, there are new loan funds available under the rules of the new U.S. Treasury and Small Business Administration (SBA) PPP guidance recently released. The "Second Draw", also referred to as PPP-2, funding will allow current PPP borrowers to receive a second PPP Loan, if eligible (new details of eligibility indicated below).
While we continue to receive updates on a daily basis from the U.S. Treasury
regarding new and necessary guidance, rules, and official forms for PPP-2, we are committed to communicating updates regularly and keeping you informed of how best to apply for your PPP Loans at MNB Bank. Our team stands ready to accept applications and will continue to communicate more information as it is released.
Two important things to know:
MNB Bank is proud to have helped many of our customers and community small business partners receive Small Business Administration Paycheck Protection Program (PPP) loans. We understand these funds have been vital to support small businesses, their employees, and their families during these unparalleled times. While this process has certainly been ever-evolving with daily and weekly changes, we remain committed to keeping our small business customers informed of all resources readily available to them and doing our best to guide you during this unprecedented time. Thank you for your patience as we navigate this new process together.
First-time PPP customer eligibilities include the following:
- Any customer entity or business that was open prior to Feb. 15, 2020
- Certain additions for Farm and Ranch operations, which were previously not included in PPP funding
Second Draw (PPP-2) customer eligibilities are similar to the requirements for previous PPP loan requirements. Below is an updated summary:
- Generally, businesses will be eligible for a second round of PPP loan if:
- It employs not more than 300 employees;
- Demonstrates at least a 25% reduction in gross receipts in any quarter of 2020 relative to the same 2019 quarter.
- The amount of second round PPP loans will generally be 2.5x average monthly payroll costs (except for certain industries like restaurants, hospitality organizations, etc.) and will be capped at $2,000,000.
- Second round of PPP Loans expands eligibility to additional types of non-profits, news organizations, destination marketing organizations, and others. Please be aware that some businesses may be ineligible in the Second Draw. We recommend referring to the SBA for further details on eligibility.
- Several new expenses are now included and eligible that were not previously included in the first round of PPP funding. Please refer to SBA and Treasury guidance.
AMENDED PPP APPLICATIONS (as of 01/08/2021)