New Paycheck Protection Program (PPP) Expansion – Effective January, 2021
Late December, Congress passed a relief package re-starting the Paycheck Protection Program (PPP), providing an additional $284 billion in new loans. The Small Business Administration (SBA) and the Treasury Department have recently confirmed guidelines and launched the application process.
Lakeside Bank immediately began working with our clients and those non-clients we were able to rapidly assist in the first rounds. We will again expand our hands-on personal service to additional businesses as soon as possible. Our personal, focused, attention has helped us achieve superior application results. We are confident we will again be successful for our clients.
If you’re a Lakeside client, please contact your personal Lakeside Banker if PPP assistance is needed. You may apply if you participated in the earlier draws or if you’re interested for the first time. If you’re not a Lakeside client, but we served you during the first rounds, again, please contact the specific Lakeside Banker you worked with.
As noted, if you’re not a current Lakeside client, or didn’t work with us on PPP loans before, please send an email to Tim Millins providing your email and phone contact information. Please briefly summarize your business, number of employees and desired PPP loan. Tim is a key leader on our PPP team and may be reached at, firstname.lastname@example.org
The following is a summary of the uupdated core PPP guidelines. A SBA link is included for detailed information.
The SBA has defined two categories of loans:
- First Draw
- Applicants who have not received a PPP loan before. Guidelines have been modified since the original rounds of funding and are summarized below.
- Second Draw
- Previous participants who have, or will have, applied the full amount(s) received for approved use. Eligibility here requires,
- Confirmation of a 25% or more drop in gross receipts between comparable quarters in 2019 and 2020.
- 300 or fewer employees.
Other general information includes:
- Loans are capped at $2 million.
- There is also now a $4 million cap for affiliates. (Example: Company A owns Companies B & C. If all three companies were eligible for $2 million in PPP support, the group would now be limited to $4 million.)
- Funds are available for up to 2.5x average monthly payroll.
- Select industries (primarily hotel and food service) may receive loans up to 3.5x monthly payroll.
- Borrowers can set the terms of the covered period, ranging from 8 to 24 weeks.
- A 60 / 40 split between payroll and non-payroll costs is allowed. Non-payroll may include employee health benefits, mortgage interest, rent, utilities and other expenses essential to operations.
- Loans have five year terms and a 1% interest rate. Loans may be forgiven.
Please see below for PPP-related documents:
- Paycheck Protection Program First Draw Loans Overview (.pdf)
- Paycheck Protection Program Second Draw Loans Overview (.pdf)
- Paycheck Protection Program Second Draw Borrower Application Form (.pdf)
- Paycheck Protection Program Borrower Application Form (Revised January 8, 2021) (.pdf)
- Paycheck Protection Loan/Forgiveness Calculator (.xlsx)
Please see the government site below to learn more and find applications.
*PPP loans subject to government review & authorization.