The Small Business
Paycheck Protection Program (PPP)
In keeping with program guidelines, Bank of the Sierra is no longer accepting applications for the Small Business Administration’s Paycheck Protection Program (PPP) Round 1 loans. If your business already applied for a PPP Round 1 loan through Bank of the Sierra, you can check your application status online.
Our PPP loan team is contacting borrowers individually so they can apply for forgiveness through the Bank’s online application portal.
Interested in learning more about the PPP loan forgiveness process? This video explains what you can expect when you begin your loan forgiveness application at Bank of the Sierra.
One of the most notable features of PPP loans is that all, or some, of the loan amount will be forgiven if:
Please note: If applicable, SBA will deduct any EIDL advance amount you have received from the forgiveness amount remitted to the Lender, as required by section 1110(e)(6) of the CARES Act. For details from the SBA, visit PPP or EIDL.
Important update: Through a rule change enacted in October, eligible borrowers with PPP loans of $50,000 or less can take advantage of a simplified forgiveness application, which exempts them from reductions in loan forgiveness due to:
This exemption is not available to borrowers who, together with their affiliates, received loans totaling $2 million or more. See the SBA’s simplified application instructions for additional details.
Our PPP loan team will contact your business when our online PPP Loan Forgiveness portal is ready for your application. You will need your SBA Loan Number and TIN/SSN to begin the process. You will be required to upload various documents that will be used to verify your payroll, rent, utilities, and interest information and amounts. Note that this online application is only available to businesses that received a PPP loan through Bank of the Sierra.
Depending on your eligibility, our online portal will let you complete one of the following PPP forgiveness applications:
If you are ready to apply for PPP loan forgiveness, a list of required documents is available by visiting the SBA's Paycheck Protection Program webpage.
On June 5, 2020, the Paycheck Protection Program Flexibility Act was signed into law. This legislation amends many aspects of the PPP to provide more flexibility for borrowers and to make it easier to qualify for loan forgiveness. Here are some of the key updates to the program:
As part of the federal stimulus measures to address the COVID-19 pandemic, the Coronavirus Aid, Relief, and Security Act (CARES Act) was signed into law on March 27, 2020. A key piece of this legislation is the Paycheck Protection Program (PPP). This program authorizes government funding for low-interest, forgivable loans for small businesses and nonprofits to encourage them to retain or rehire their employees.
Through the Paycheck Protection Program Flexibility Act, the PPP has been amended to provide more flexibility for businesses and to make it easier to qualify for loan forgiveness. Additionally, while the program was slated to end on June 30, Congress extended the application period by five weeks to give businesses more time to apply.
In keeping with the program guidelines, Bank of the Sierra is no longer accepting applications for PPP loans. However, businesses that already applied for a PPP loan from Bank of the Sierra can check their application status online.
PPP loans are offered by the Small Business Administration (SBA) through SBA-approved lenders, like Bank of the Sierra. Features include:
Small businesses that receive funds through the program can use them to pay for the items listed below:
Small businesses were able to receive 2.5x the average of their monthly payroll costs from January 1, 2019 through December 31, 2019. If their business was seasonal, borrowers had the option to choose the time period of February 15, 2019, to June 30, 2019, instead. And, if their business was new, borrowers were able to choose the time period of January 1, 2020, to February 15, 2020. Loan amount calculations were based on the following items:
Applicants were required to exclude the compensation of any employees whose principle residence was outside of the U.S.
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.