Paycheck Protection Program
Latest Info on PPP
On January 11th, the SBA opened the portal for certain types of community financial institutions including Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and Micro Lenders. These lenders have $15 billion set-aside to increase access for minority-owned businesses and other underserved small businesses and nonprofits. It is believed this rollout is an opportunity for the SBA to improve the processes without having a large volume of applications submitted simultaneously.
The portal for the general PPP program is expected to opened this Friday unless issues arise that cause delays. We will begin accepting applications prior to the portal opening so we are prepared to submit applications once the portal opens. We will be utilizing the same application for the 2nd round of PPP that was used for the first round and forgiveness. Most of the information and documentation you supplied with the 1st round application will be accessible and utilized for the 2nd round.
Eligibility for a 2nd round draw is different from a 1st round draw. Eligibility for a 2nd draw is as follows:
- Less than 300 employees, and
- Sustained a reduction of 25% in gross receipts in any quarter of 2020 when compared to the same quarter in 2019 supported by documentation, and
- For most clients, this will be internally prepared income statements for each quarter or annually with a side-by-side comparison of 2019 and 2020.
- Used the full amount of their first PPP loan
- Eligible entities must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives.
- Stock not traded on a national exchange
- Not be a specifically ineligible business listed in the interim final
If you are eligible and elect to participate in the 2nd round draw, please reach out to the lender you worked with when submitting your 1st round draw. We will then issue you your specific application link. If you are uncertain who your lender is, please click here.
If you are not currently a North American Banking Company customer, we invite you to contact us for more information about applying for a Payment Protection Program loan with us.
We look forward to working with you and supporting your business.
North American Banking Company