PPP First Draw loan eligibility:
- Must not have received a First Draw PPP loan;
- May not employ more than 500 employees (or 500 employees per physical location if the business has multiple locations);
- Must have been in Business before February 15, 2020;
- Businesses that receive Shuttered Venue Operator grants are not eligible;
- Publicly traded companies are ineligible;
- Ineligible entities continue to include those listed in 13 C.F.R 120.110 and subsequent regulations except for those entities that have been otherwise made eligible including non-profits and religious organizations.
PPP First Draw loan terms:
- Maximum loan amount is $10,000,000;
- May receive loan amount up to 2.5x average monthly payroll costs in the 12 months prior to the loan or calendar year 2019;
- Entities not in operation for a full year as of February 15, 2020 may use the sum of their average monthly payroll costs;
- Businesses assigned NAICS code 72 (accommodations and food services) may receive loans up to 3.5x average monthly payroll costs;
- Waiver of affiliation rules continue to apply;
- 60/40 allocation between payroll and non-payroll costs continues to apply.
Payroll expenses allowable and forgivable uses for PPP funds:
- Cash compensation paid to employees
- Employer contributions to employee health insurance
- Employer contributions to employee retirement plans
Non-payroll expenses are now allowable and forgivable uses for PPP funds:
- Business mortgage interest, rent, or lease payments
- Business utility payments
- Software, cloud computing, and other accounting and HR needs;
- Payments to a supplier under a contract, purchase order or order for goods in effect prior to the borrower’s receiving the loan that were essential to the borrower’s operations at the time the payments were made; expenditures for perishable goods are eligible before and during the life of the loan;
- Personal Protective Equipment (PPE) and adaptive investments purchased to help comply with federal and state health and safety guidelines related to COVID-19 between March 1, 2020 and the end of the national emergency declaration;
- Expenses related to property damage due to public disturbances occurring in 2020 and not covered by insurance;
- 60/40 allocation between payroll and non-payroll costs continues to apply.
For additional information please visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
Or send an email to First National Bank of Bastrop helpdesk@fnbbastrop.com