Paycheck Protection Program (PPP) Next Round
Updated on 01/07/21
The U.S. Small Business Administration (SBA) and Treasury issued guidance on 1/6/21 regarding the next round of Paycheck Protection Program funding. We are currently reviewing this program and developing a plan of action based on the guidance provided. Please note that lenders have not received applications or forms yet. As a result, we are not accepting applications for the next round of PPP at this time. An arrival date for these forms has not yet been provided, but we will keep you informed.
Please click here for our fact sheet that provides a checklist of required supporting documents.
On December 27, 2020, President Trump signed the latest COVID-19 relief package into law. The package provides for updates to the Paycheck Protection Program, including new loans, forgiveness on existing loans, and second draw loans. Please see the latest information available from the SBA here.
- Now that the COVID-19 Relief bill is a law, the SBA needs to create the new PPP program, distribute the rules, and update its systems, which could take up to a month. At that time, banks will need to implement the processes and update their systems.
Heartland Bank will continue to keep you updated via email and our new private Facebook group regarding the timing of this next round.
- The Bill indicates that PPP borrowers will have the following PPP loan options:
- If you are a first-time PPP borrower, you can apply for a PPP loan using the original PPP loan program criteria and terms. See the SBA guide to see if you are eligible.
- Borrowers interested in a second draw PPP loan will have different eligibility criteria such as businesses with 300 employees or less that experienced a 25% reduction in gross revenues compared to 2019, among other eligibility criteria. Second loans may be in an amount equal to 2.5 times monthly payroll costs up to $2 million (note certain hard-hit industries, such as hospitality, may obtain a second loan in an amount equal to 3.5 times monthly payroll costs up to $2 million). Your current PPP loan does not need to be forgiven to get a second loan. The SBA is writing guidance for second PPP loans and we will share the full details once we have them.
- Non-payroll expenses have been expanded to also include costs of certain business software or cloud computing services, certain uninsured property damage costs from public disturbances during 2020, certain supplier costs, and certain worker protection expenditures.
- The Bill also makes clarifications to the tax treatment of eligible expenses and forgiveness. We recommend that you contact your accounting or tax advisor for more information.
- We will keep this site updated regularly and communicate with customers as more information becomes available.
Loan Forgiveness is Still Available!
Heartland Bank thanks the small businesses that trusted us to help them secure funding via the U.S. Small Business Administration’s (SBA) Paycheck Protection Program. We know some customers have met program requirements and are ready to begin the forgiveness phase and we have made an electronic process available to facilitate that action. For others, as we monitor proposed legislation that could further streamline the process, it may make sense to wait to initiate the forgiveness phase. Our priority is making sure you understand your options and that we are here to help you in any way we can.
Click the orange Apply link below to begin your Forgiveness Application. Be sure to check out the Helpful Hints before you begin!
To start the application you will need the following:
- Your Business Email
- Borrower Tax Identification Number (TIN)
- Original PPP Loan Amount
As a resource, we have also attached the instructions for the two types of applications. These instructions can be used as a guide for what documentation will be needed to upload with your application.
We will continue to communicate program updates through email and our new private Facebook group as we get additional information on the program from the SBA. Please contact us with any questions.