PPP Loan Information
Prairie Community Bank is now accepting applications for Paycheck Protection Program (PPP) Loans, both for eligible small business that have not previously received a PPP loan ("First Draw"), as well as a "Second Draw" option for businesses that have previously received a loan. Our Marengo, Elgin, and Union IL branches are ready to serve you.
First Draw Loan Information
First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Full Forgiveness Terms
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs.
Who Can Apply
Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply. 1
Reapplying and Loan Increases Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.
How and When to Apply
Borrowers can apply for a First Draw PPP Loan until March 31, 2021.
Ensuring Access for All
SBA continues to call upon its lending partners, including Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities. At least $15 billion is being set aside for First Draw PPP loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. To promote access for smaller lenders and their customers, SBA will initially only accept loan applications from community financial institutions starting on January 11, 2021. The PPP will open to all participating lenders shortly thereafter.
Second Draw Loan Information
The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. For most borrowers the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 Million. For borrowers in the Accommodation and Food Services section (NAICS code 72) the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs.
Eligible Use of Funds
- Payroll costs including benefits
- Mortgage interest
- Worker protection costs related to COVID-19
- Uninsured property damage costs caused by looting or vandalism during 2020
- Certain supplier costs and expenses for operations
A Borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
What's Needed to Apply:
- Second Draw Borrower Application Form (2483-SD)
- Good Faith Certification
- Profit & Loss Statements for the 2019 & 2020 comparable quarters
- Payroll documentation if not utilizing First Round PPP documents (i.e. payroll summary reports, quarterly Form 941, Annual 940, employer contribution to employee health insurance and retirement plan statements)
For questions, or to submit your application, feel free to contact Prairie Community Bank’s Loan Team at (815) 568-4100.