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Paycheck Protection Program (PPP)

With the passage of the Economic Aid Act on December 27, 2020, the government reauthorized and funded the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP). Businesses that did not receive a PPP loan previously may be eligible to apply for a First Draw PPP. Businesses that did receive a PPP loan previously, may be eligible to obtain a Second Draw PPP.

For more details and the most up to date information on PPP visit www.sba.gov

First Draw Paycheck Protection Program (PPP)

  • For eligible small entities that did not receive a PPP loan previously.
  • Loan can be used to help fund payroll costs and employee benefits, as well as 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.
  • Loan amount is equal to 2.5x average monthly payroll for 2019 or 2020.
  • First Draw PPP Loans made to eligible borrowers may qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement if loan proceeds are spent on payroll costs and other eligible expenses.

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Second Draw Paycheck Protection Program (PPP)

  • For eligible small entities that previously received a PPP loan and
    • will or have used the full amount only for authorized uses;
    • have no more than 300 employees; and 
    • can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
  • Loan can be used to help fund payroll costs and employee benefits, as well as 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.
  • Loan amount is equal to 2.5x average monthly payroll for 2019 or 2020 (3.5x for any entity with a NAICS code starting with 72 – Accommodation and Food Services).

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Paycheck Protection Program (PPP) Loan Forgiveness

  • First Draw and Second Draw PPP Loans made to eligible borrowers may qualify for full loan forgiveness if during the 8-to 24-week covered period following loan disbursement:
    • Employee and compensation levels were maintained; 
    • the loan proceeds were spent on payroll costs and other eligible expenses; and 
    • at least 60 percent of the proceeds were spent on payroll costs.

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Please contact your St. Mary’s Bank Commercial Banking representative at commercialbanking@stmarysbank.com, or call (603) 629-1692 with questions.