On Tuesday, March 30, 2021, the President signed into law the "PPP Extension Act of 2021", wihch extends the Paycheck Protection Program (PPP) application deadline to May 31, 2021. While the deadline has been extended, we encourage you to apply as early as you can while the funding is available.
Additional changes to the program have also been made, ensuring that more underserved small businesses can apply.
Paycheck Protection Program (PPP) - Round 2
Round 2 of PPP has launched and Bank First lenders are here to help! What's the difference between First Draw and Second Draw? In general, a First Draw PPP loan is for eligible borrowers who did not receive a PPP loan before the program closed in August 2020. A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts.
On Wednesday, March 3, the SBA updated all of its application forms for both First Draw and Second Draw borrowers and created new forms solely for the use of a sole proprietor electing to use gross income instead of net income in determining maximum PPP loan amount. This calculation change will apply only to loans approved after the rule’s effective date.
FIRST DRAW LOANS
- Top-Line Overview of First Draw Loans
- First Draw Borrower Application Form (revised 3/22/2021)
- First Draw Borrower Application Form - Schedule C Filers Using Gross Income (revised 3/22/2021)
- First Draw Bank First PPP Loan Calculator (revised 3/5/2021)
- How to Calculate First Draw Loans: How to Calculate First Draw PPP Loan Amounts (sba.gov)
- Apply online for a First Draw PPP Loan
SECOND DRAW LOANS
- Top-Line Overview of Second Draw Loans
- Second Draw Borrower Application Form (revised 3/22/2021)
- Second Draw Borrower Application Form - Schedule C Filers Using Gross Income (revised 3/22/2021)
- Second Draw Bank First PPP Loan Calculator (revised 3/5/2021)
- How to Calculate Second Draw Loans: How to Calculate Second Draw FAQs-3.12.21.pdf (sba.gov)
- If you are a Bank First customer and wish to apply for a Second Draw PPP Loan, you will receive an email with instructions on how to apply.
- If you've previously received a PPP loan from another financial institution and wish to apply for a Second Draw PPP Loan, please contact a Relationship Manager at one of our locations.
- READ THE SBA AND TREASURY ANNOUNCEMENT
- Guidance on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns
- Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act (revised 3/22/2021)
- Interim Final Rule on Second Draw PPP Loans
- FAQs (revised 4/6/2021)
PPP LOAN FORGIVENESS - Round 1
The U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
Both applications give borrowers the option of using the original 8-week covered period (if the loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
- SBA Form 3508 Paycheck Protection Program Loan Forgiveness Application (updated 01-19-21)
- SBA Form 3508EZ Paycheck Protection Program Loan Forgiveness Application (updated 01-19-21)
- SBA Form 3508S Paycheck Protection Program Forgiveness Application (updated 01-19-21)
- Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act
PPP Forgiveness for Loans of $150,000 and Under Streamlined
The SBA released a streamlined loan forgiveness application for PPP loans totaling $150,000 or less. The new, simplified Form 3508S includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants still must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are further required to retain the documentation supporting their certifications for six years, but do not need to submit it.
A borrower that uses SBA Form 3508S is exempt from any reductions in the borrower’s loan forgiveness amount based on reductions in full-time equivalent (FTE) employees (section 1106(d)(2) of the CARES Act) or reductions in employee salary or wages (section 1106(d)(3) of the CARES Act) that would otherwise apply.
Additional tools you can use:
- Wisconsin Bankers Association (WBA) PPP Forgiveness Q&A
- Bank First Forgiveness Application Guide
- SBA Frequently Asked Questions on PPP Loan Forgiveness (8/4/20)
- Bank First Loan Forgiveness Estimator (24 Week Covered Period)
- SBA Loan Review - Borrower and Lender Responsibilities
- Department of the Treasury - Loan Forgiveness Interim Final Rule
ADDITIONAL SBA LOAN ASSISTANCE OPTIONS
The Small Business Administration is offering additional loan options your business may qualify for, including:
RESTAURANT REVITALIZATION FUND
The American Rescue Act established $28.6 billion as part of the "Restaurant Revitalization Fund" within the SBA. An eligible business may receive a tax-free federal grant equal to the amount of its pandemic-related revenue loss, calculated by subtracting its 2020 gross receipts from its 2019 gross receipts.
SHUTTERED VENUE OPERATORS GRANT
The Shuttered Venue Operators Grant application portal remains temporarily suspended through the weekend of April 9, while the SBA works to resolve technical issues. When a reopening date is determined, the SBA will provide updates in advance so that applicants have time to prepare. Applicants may continue to register for a new account.
The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance.
Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
- FAQ Regarding Shuttered Venue Operators Grant (SVOG)
- SVOG Eligibility Requirements
- SVOG Preliminary Application Checklist
- Cross-program eligibility on SBA COVID-19 relief options
- SVOG-specific version of IRS Form 4506T
- SVOG applicant user guide (coming soon)
COVID-19 ECONOMIC INJURY DISASTER LOANS (EIDL)
- This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. Learn More and determine if your business qualifies.
SBA EXPRESS BRIDGE LOANS
- Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. Learn More and determine if your business qualifies.
SBA DEBT RELIEF
- The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic. Learn More and determine if your business qualifies.
FEDERAL RESERVE LOAN PROGRAMS
The Federal Reserve established the Main Street Lending Program to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).
Main Street New Loan Facility (MSNLF) Term Sheet (June 8, 2020)
Main Street Priority Loan Facility (MSPLF) Term Sheet (June 8, 2020)
Main Street Expanded Loan Facility (MSELF) Term Sheet (June 8, 2020)
Main Street Lending Program Frequently Asked Questions
USDA RURAL DEVELOPMENT PROGRAMS
USDA Rural Development has taken a number of immediate actions to help rural residents, businesses, and communities affected by the COVID-19 outbreak. Learn more.
- Borrowers may receive a 180-day loan payment deferral without prior agency approval for Business and Industry Loan Guarantees, Rural Energy for America Program Loan Guarantees, Community Facilities Loan Guarantees, and Water and Waste Disposal Loan Guarantees.
WWBIC COVID-19 FAST TRACK LOAN PROGRAM
WWBIC is a leading innovative statewide economic development corporation that’s been “Putting Dreams to Work” since 1987. The COVID-19 Fast Track Loan Program is focused on existing businesses looking for business financing during COVID-19. Business owners have two options from which to pick depending on their needs: a line of credit or a term loan. Learn more.
In addition to the aforementioned lending resources, Bank First may also be able to assist your business with other loan options. Please contact your Bank First relationship manager to discuss which options are the best fit for your individual business. As always, thank you for choosing Bank First!
- U.S. Chamber of Commerce Resources for Business
- Small Business Administration (SBA) Small Business Guidance & Loan Resources
- Small Business Administration (SBA) Disaster Assistance
- Sign up to receive SBA Updates
- Wisconsin Bankers Association - Summary of COVID-19 Lending Options
- IRS FAQs on Employee Retention Credit