When the Paycheck Protection Plan (PPP) program was introduced, we knew that as a community-focused bank it was our duty – and our privilege – to help the businesses in our community get access to critical funding that would assist them through this challenging time. The Small Business Association (SBA) has reopened the PPP program for new loans beginning Friday, January 15, 2021.
Intercity State Bank is currently accepting applications for this new round of PPP loans. There are two types of new PPP loans available.
First Draw – available for those borrowers that did not participate in the 2020 PPP loan program.
- Funds may be used to help fund payroll costs, including benefits, 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.
- Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees can apply.
- Top-line Overview of First Draw PPP
Second Draw – available to certain eligible borrowers that previously received a PPP loan.
- Borrower must have spent the full amount of its First Draw PPP Loan on eligible expenses under the PPP rules to be eligible for a Second Draw PPP Loan.
- Borrower must have experienced a revenue reduction of 25% or more in any quarter or in total from 2019 to 2020.
- Maximum loan amount and increased assistance for accommodation and food service businesses: For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
- Top-line Overview of Second Draw PPP
Application Submission Checklist:
- Complete and sign application.
First Draw – 2483-First Draw Borrower App
Second Draw – 2483 SD-Second Draw Borrower App - Prepare supporting documentation.
- Payroll costs.
- Reduction in gross receipts (for second draw loans).
- Submit application and supporting documentation using secure upload here.
Information on existing PPP Loan Forgiveness:
- PPP Loans Under $50k: https://conta.cc/3lFNgwP
- PPP Loans Over $50k: https://conta.cc/352V4BX
If you have any questions, please do not hesitate to contact your business banker listed on the right of this page or email us here.
