PAYROLL PROTECTION
PROGRAM
PPP2021-04-19T14:39:57+00:00

We’re Here for Our Small Business Community!

Rely on CCBank to help guide your small business through these uncertain times. 

For over 25 years, CCBank has supported small businesses in our community. We continue to support you now during this pandemic. With the passing of the CARES Act, 2020, the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act of 2021, there are multiple resources available to assist your business overcome some of the financial burdens this pandemic has placed on you. At CCBank, we are your lending experts. We will help you analyze your needs, evaluate your eligibility, and  guide you through the SBA’s application and loan forgiveness process.

Let’s work together to keep your small business healthy.

Get Assistance for Your Business with the SBA Paycheck Protection Program

The Paycheck Protection Program (PPP) is a federal loan program created as part of the CARES stimulus package and administered through the U.S. Small Business Administration (SBA), to help small businesses that have been negatively impacted by the COVID-19 pandemic. The PPP will expire on May 31, 2021, so time is of the essence in applying.

To help you learn more about how you and your business can benefit from the PPP, we have created the following FAQ’s gathered from available materials provided by the SBA to help answer your questions. As always, you are welcome to call one of our Loan Officers for personalized assistance.

What are the Two Types of PPP Loans Currently Available2021-04-19T14:53:28+00:00

The SBA is currently offering a First and Second Draw PPP Loans . First Draw PPP Loans are available to eligible borrowers  who have not previously received a PPP loan. Second Draw PPP Loans are available to borrowers  who have previously received a PPP Loan, and meet certain criteria for a second PPP Loan.  As always, CCBank’s Loan Officers are prepared to assist you with navigating both the First and Second Draw PPP Loan eligibility and application process.

Will The Forgiven Amount of My PPP Loan be Taxable Income?2021-04-12T21:30:14+00:00

No, this will not be considered as taxable income by the IRS. In some instances, a PPP loan may impact your state taxes. We would recommend working with a CPA for professional tax advice.

 

Can Any Part of the PPP Loan be Forgiven?2021-04-12T21:31:13+00:00

PPP loans may be fully forgiven if all the funds were used under the provisions of the CARES Act. Through the CCBank automated forgiveness portal and with the guidance of our Loan Officers, we will assist you with the forgiveness application. The automation we employ, as well as the expertise of our lending staff, streamlines the PPP Loan forgiveness process for you and your business.

Can the Economic Injury Disaster Loan (EIDL) be Used Along with a PPP Loan?2021-04-12T20:28:00+00:00

You can receive assistance through both the EIDL Program and the PPP Loan program for financial hardships caused by the coronavirus pandemic, but you must use the funds for different purposes. For example, if you are using PPP funds to cover utilities and rental expenses, funding received through EIDL must be used for other expenses, such as payroll or other business expenses.

We can help your business navigate through the SBA economic injury disaster loans available that could help you with working capital to help you get through prolonged but temporary losses in revenue. The SBA also has a debt relief program where the SBA will pay the principal and interest for a period of six months of new 7(a) loans issued prior to September 27, 2020.

 

How Much Can I Borrow, and How Will It Be Calculated?2021-04-12T20:30:24+00:00

First Draw PPP Loans:

  • Our loan officers will assist you in calculating your maximum first draw PPP loan amount, but you can apply for loan amounts up to $10 million.

 

Second Draw PPP Loans:

  • The maximum loan amount for a Second Draw PPP Loan is 2.5 times the average 2019 or 2020 payroll costs up to $2 million.
  • For borrowers in the Accommodation and Food Services sector, the amount is raised to 3.5 times the average monthly 2019 or 202 payroll costs up to $2 million.

 

Source: U.S. SBA, 2021
Who Is Eligible?2021-04-12T20:31:42+00:00

According to the SBA, the following entities affected by COVID-19 may be eligible for a PPP loan:

 

First Draw PPP Loans:

  • Sole proprietors, independent contractors, and self-employed persons
  • Any small business concern that meets the SBA’s size standards
  • Any business, 501(c)(3) nonprofit, 501(c)(19) veterans’ organization, or tribal business with the greater of 500 employees or that meets the SBA industry size standard if more than 500
  • Any business with a NAICS code that begins with 72 (accommodations and food services) that has more than 1 physical location and employs less than 500 per location.

 

Second Draw PPP Loans:

  • Previously received a First Draw PPP Loan and will or has used the 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.

 

Source: U.S. SBA, 2021

 

What Are The Terms of The Loan?2021-04-12T20:32:49+00:00
  • Loan rate of 1%
  • Loans issued before June 5, 2020 have a maturity of 2 years
  • Loans issued after June 5, 2020 have a maturity of 5 years
  • No closing or documentation fees
Do I Need to Provide any Collateral or Personal Guarantees in Order to Qualify?2021-04-12T20:33:34+00:00

No collateral or personal guarantees are required

How Soon Will I Need to Start Paying on My PPP Loan?2021-04-12T20:52:10+00:00
  • Loan payments are deferred for borrowers who apply for loan forgiveness until the SBA remits the borrower’s loan forgiveness to the lender.
  • If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 and 24 weeks)
Source: U.S. SBA, 2021
What Business Expenses Can the PPP Loan Funds Be Used For?2021-04-12T20:54:21+00:00

The SBA PPP provides businesses with a loan to be applied toward payroll costs, interest on mortgages, rent, utilities, and other certain operational expenses or supplier costs.

 Information on this page is accurate as of April 2021 and is subject to change.

If you would like more information on the CARES stimulus package or the Paycheck Protection Program (PPP) loan, please contact one of our local SBA experts:

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