The Small Business Administration (SBA) has reopened the Paycheck Protection Program (PPP) for First Draw Loans to assist borrowers whose businesses have been financially impacted by the ongoing pandemic. Initial guidance surrounding this new round of funding can be found here and a general overview of the program can be found here. We encourage interested borrowers to review the SBA’s website as well as the information below to determine eligibility. Having helped hundreds of businesses secure PPP Loans over the past year, we have a wealth of experience surrounding the program and look forward to assisting new borrowers with their applications. Should you have any questions please contact us at PPPLoan@firstresourcebank.com
Click here if you are interested in applying for First Draw PPP Loan with First Resource Bank
What do I need to know regarding eligibility?
- Small businesses, nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors with 500 employees or less are eligible to apply.
- Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply.
What can the funds be used for?
- to help fund payroll costs, including benefits
- to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19
- to pay for uninsured property damage costs caused by looting or vandalism during 2020
- to cover certain supplier costs and expenses for operations
Will PPP Loans be forgiven?
Borrowers will qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs