SBA Paycheck Protection Program
Last Update: January 25th , 2021 1:30 p.m. CST
We are not accepting SBA PPP Loan Applications
NOTICE TO ONE WORLD BANK CUSTOMERS ABOUT PPP LOANS
The U. S. Small Business Administration (“SBA”) is reopening the Paycheck Protection Program (“PPP”) for businesses who have not received a PPP loan previously, “First Draw Loans” or who received a PPP loan in 2020 and have already used, or plan to use, the funds, “Second Draw Loans”. First Draw borrowers can apply beginning January 11, 2021 and Second Draw borrowers can apply beginning January 13, 2021. Both programs end March 31, 2021. The same general terms apply to both Loan Programs Both loan programs can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Loans, and the Forgiveness, are nontaxable.
Due to overwhelming demand, we have temporarily stopped accepting applications for the new SBA PPP program. This is a temporary situation and we will begin accepting applications again soon.
Thank you for your patience.
Full Forgiveness Terms
First and 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
- 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.
First Draw PPP Loans
A borrower is generally eligible for a First Draw PPP Loan if the borrower:
- Is a for-profit or eligible nonprofit business, veterans organization, tribal concern, self-employed individual, sole proprietorship, and independent contractors.
- Business and affiliates must have no more than 500 employees, certain industries with more than 500 employees can apply if they meet SBA qualifications (see SBA websites below for details).
- Did not receive all the First Draw PPP funds for which they were eligible
- If borrower returned some, or all, of their First Draw PPP Loan funds
- Must have been in business on February 15, 2020
- Maximum loan amount is $10,000,000
- Loan amount limited to 2.5x average monthly payroll, except for NAICS code 72 industries., Accommodation and Food Service businesses, which can apply for an increase to their First Draw Loan to 3.5x their average monthly 2019 or 2020 payroll costs.
Second Draw PPP Loans
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and has, or will, use 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.
- Maximum Loan amount of $2,000,000
- Loan amount limited to 2.5x average monthly 2019 or 2020 payroll costs, except for NAICS code 72 industries. Accommodation and Food Service businesses which are eligible for 3.5x average monthly 2019 or 2020 payroll costs, up to $2 million.