The Small Business
Administration’s
Paycheck Protection Program (PPP)
The Small Business
Administration’s
Paycheck Protection Program (PPP)
Updated 2/25/2021
The Biden Administration has created an exclusive processing window only for PPP loan requests for sole proprietors and companies with fewer than 20 employees. The new limited SBA PPP processing window begins on February 24 and is scheduled to end after 14 days. As such, we will hold applications from businesses that do not meet these requirements and submit them to the SBA once the processing window re-opens. For more information, please visit the SBA website.
At the end of 2020, lawmakers passed the Consolidated Appropriations Act, 2021, with new economic relief measures in response to COVID-19. The new law includes $284.5 billion in added funding for the Paycheck Protection Program.
Along with restarting the PPP, which provides low-interest, forgivable small business loans to eligible borrowers, the legislation updates the program in important ways. Most notably, it now allows certain borrowers to apply for a second PPP loan, in addition to accepting applications from first-time borrowers.
In this second round of PPP funding, known as “PPP2,” borrowers who already received a PPP loan can apply for a second-draw loan up to $2 million (based on the amount of their payroll) if they meet certain requirements (reduced from a limit of $10 million for first-time PPP borrowers).
To be eligible for a second-draw PPP loan, an applicant must meet ALL the following requirements:
PPP2 will also allow new first-time borrowers, including:
The PPP will continue to emphasize each borrower’s payroll expenses. Both the formula to calculate loan amounts (based on average monthly payroll) and loan forgiveness requirements are staying the same. But there are some important updates:
The closing date for PPP Round 2 loan applications is March 31, 2021.
To help expedite the processing of your PPP loan application, we have prepared a checklist to help you gather the documentation that will be needed to process your PPP loan.
To apply for a first- or second-draw PPP loan, please apply using the link below. You can also check the status of your PPP loan application.
Manage your money on the go with these resources.
Important Disclaimer: Bank of the Sierra wants to support our business customers by providing information and reminders about the Paycheck Protection Program (PPP), which are based on guidance from the Small Business Administration (SBA). Please note that the information we provide is for informational purposes only. We are not guaranteeing its accuracy. We are not endorsing the program nor providing business, legal, or tax advice. There are still uncertainties about the program, and the SBA is expected to release additional guidance. Current information can be found on the SBA’s Paycheck Protection Program webpage.