Earlier this year, the federal government executed legislation, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, providing additional Paycheck Protection Program (PPP) funding up to $284 million and altering forgiveness rules for currently outstanding PPP loans. For complete information regarding the requirements and details, please refer to US Department of the Treasury website here. TBK Bank will no longer accept applications after March 19, 2021.
In 2020, TBK Bank was proud help over 2,000 local small businesses receive a total of $227 million in funding in the communities we serve during the first round of PPP loans.
PPP Loan Rates and Terms
- All PPP loans have a fixed interest rate. The new bill has clarified that the interest rate is non-compounding and non-adjustable for first- and second-draw loans.
- The maturity of a PPP loan is five years.
- The deferral period lasts until the loan forgiveness amount is determined.
- First Draw Loans-$10,000,000 maximum
- Second Draw Loans – Borrowers may still receive loans up to 2.5 times the amount of average monthly payroll costs up to $2,000,000. Entities in industries assigned to NAICS code 72 (Accommodations and Food Services) may receive loans up to 3.5 times the amount of average monthly payroll costs up to $2,000,000.
- Please refer to the US Department of the Treasury website for additional details.
Second Draw PPP Loan Eligibility
If you are applying for a second PPP loan, you must be a business with 300 or fewer employees and meet the following or are otherwise eligible under the PPP guidelines.
- You must have used the full amount of your first PPP loan on eligible expenses before any Second Draw PPP loan can be advanced.
- You demonstrate at least a 25% reduction in gross receipts in any quarter of 2020 relative to the same 2019 quarter gross receipts during the first, second, third, or, fourth quarter.
- Businesses that were in operation on February 15, 2020 will be eligible for an initial PPP loan or a second draw loan.
- Sole proprietors
- Independent contractors
- Self-employed individuals
- Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations)
- Seasonal employers: the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
- Faith-based organizations that have less than 150 employees
- Housing cooperatives that employ less than 300 people.
PPP Loan Forgiveness
TBK Bank has temporarily paused accepting new loan forgiveness applications as we wait for anticipated changes to the forgiveness application by the SBA. We anticipate re-opening applications in April with the updated process and will be contacting clients needing to apply at that time. If you have already submitted an application, we appreciate your patience as we prepare and will have more information on whether you will need to reapply when we re-open applications. Please keep in mind you do not need to have applied or received forgiveness for your first PPP loan to be eligible for a second draw, and you have until the maturity date of your loan to apply for forgiveness.
If you have any questions or are looking for additional assistance options, please contact your TBK Bank Relationship Manager. Please also feel free to email us at email@example.com if you have questions or need to know who your assigned Relationship Manager. We will continue to post additional information to the web site when available. Thank you.