The PPP reopened Monday, January 11, 2021!

FORGIVENESS – For loans under $150,000 there will be a new one-page form to sign for complete forgiveness. The SBA has until January 20th to release this form, so it is NOT available this week. Just as soon as it is available, we will be sending eligible parties a link to complete. In order to focus on second-round PPP’s, we will not be processing forgiveness requests until this one-page form is available later this month.

EIDL GRANTS – Are no longer subtracted from forgiveness. The SBA will automatically adjust for this. You need to do nothing.

TAX IMPLICATIONS – You need to work directly with your CPA on this, but under the new Act, for 2020 taxes, PPP funds, and forgiven loans are not included in income. The expenses for which you spent the PPP are still allowable as deductible expenses. In effect, the receipt of a PPP is disregarded for tax purposes in both income and expenses.

IF YOU DID NOT RECEIVE A PPP in 2020 – We are taking applications for a FIRST DRAW PPP – meaning you did not receive a PPP previously. You do not have to meet the revenue reduction requirement of the new Act. The calculations of loan amounts are still 2.5 times the average monthly payroll.

IF YOUR BUSINESS HAS STILL BEEN IMPACTED – A SECOND DRAW PPP is available for businesses that already received a 2020 PPP and meet these criteria: Must have had a reduction of 25% or more in gross receipts in any quarter of 2020 when compared with the same quarter of 2019. The amount of any forgiven First Draw PPP Loan shall not be included toward any borrower’s gross receipts. For NAICS codes beginning with 72 (mostly restaurants), the PPP factor is 3.5 times monthly payroll rather than 2.5. We are taking applications for a SECOND DRAW PPP.

HOW TO APPLY? There are new forms for all applications. Because we must send you the appropriate form, please email with:

  1. Title your email – PPP Application Link Request
  2. In the body of the email, please provide your business name,
  3. Best contact name for an authorized signor for the business, phone, and email for that person, and
  4. You must tell me whether you are applying for:
    1. A First Draw PPP
    2. A Second Draw PPP after receiving your first PPP from Park State Bank and Trust, or
    3. A Second Draw PPP after receiving your first PPP from another bank

As we experienced in 2020, we know there will be glitches and changes and questions galore! The SBA is driving this process, so we are prepared to adapt quickly. I certainly appreciate your patience as we all walk through the new rules, new processes, and even new SBA systems. The application period is open until March 31 with NO expectation that time is of the essence. Funding of this program is expected to exceed the need, just as we saw funds remaining unspent when the first PPP program closed last August.