On December 27, 2020, as part of a larger governmental funding bill, the Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act (the Economic Aid Act) was passed. This will allow our bank to restart the Paycheck Protection Program (PPP). For customers meeting the new eligibility criteria, there will be an opportunity to apply for Second Draw PPP funding. Based on the most recent SBA rules, here are some eligibility criteria:

• No more than 300 employees
• Business suffered a 25% or greater reduction in gross revenues between comparable quarters in 2019 and 2020
• Maximum loan amount is $2,000,000 or 2.5x monthly payroll costs, the lesser of the two
• New eligibility will include 501c6 nonprofit organizations such as trade organizations and chamber of commerce

Similar forgiveness eligibility requirements will apply for the second round of PPP. Here are some of the second round PPP forgiveness eligibility requirements:

• 60% of expenses have to come from Payroll costs in order to qualify for full forgiveness
• Loans under $150,000 will have a simplified forgiveness process
• EIDL advance will not be subtracted from forgiveness amount
• Additional eligible forgiveness cost such as supplier cost, property damage cost and software cost may be used

Our lenders look forward to helping your business during these challenging times. If you have questions, please contact your local Citizens Deposit Bank lender.

All PPP loans must be applied for and funded by May 31, 2021.