It’s our mission to help you realize your dreams and to ensure that those dreams continue to grow and thrive. That's why we're pleased to announce that we are currently accepting applications for the latest round of funding offered through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Whether you are a first-time applicant or a borrower seeking a second draw loan, we understand the urgent need for relief and we are working around the clock to facilitate PPP loans for our clients.
We’re processing applications for eligible small business owners and self-employed individuals who have a primary checking account with us. The deadline to apply is May 31, 2021, or until PPP funds run out. Completed applications must be submitted well in advance of that date to allow sufficient time for the review and approval process to be completed. Contact us at 877-538-3335, Monday - Friday, 8:00 am - 5:00 pm, CT.
Please note that this information is being provided as a resource for our clients. All information is based on our current understanding of the terms and conditions applicable to the Paycheck Protection Program (PPP) as set out in the Congressional Act, and is subject to further interpretation and clarification as regulations and guidance are issued by various regulatory agencies, including the SBA.
What is the Paycheck Protection Program (PPP)?
Established to support small businesses (including sole proprietors and independent contractors) who have been negatively impacted by COVID-19, the PPP offers 1% interest loans for up to $10 million for First Draw Loans and up to $2 million for Second Draw loans.
Calculated primarily on your 2019 or 2020 average payroll (based on the year being used to calculate the maximum loan amount) or net revenue for 2.5 months (or 3.5 months for entities that fall under the NAICS code 72 for Accommodation and Food Services Industry), these loans may be up to 100% forgivable—as long as:
While the PPP basics remain generally the same, this new round of funding allows for more small businesses to take advantage of the program and provides increased funding to some of the hardest-hit industries. Participants with loans of $150,000 or less will also benefit from the new, simplified forgiveness application that streamlines the forgiveness process.
If this is the first time you are applying for a PPP loan (First Draw), the eligibility criteria includes the following requirements:
Second Draw PPP Loans
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. Second Draw PPP loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, utilities, rent and certain supplier costs and operational expenses.
You are generally eligible for a Second Draw PPP loan if you meet the criteria below:
New features for PPP Loan Forgiveness:
*If you are self-employed, you must have claimed a deduction on your 2019 or 2020 taxes for expenses indicated with an asterisk above to be forgiven.
With a fixed interest rate of 1%, unforgiven amounts of PPP loans issued before June 5, 2020 are due two years from the date or origination. Loans made after June are due in five years. Payments on PPP loans may be required before maturity depending on if or when a borrower applies for and receives full or partial forgiveness.
Your Hancock Whitney banker can help
We understand that the pandemic has put many clients in a position of uncertainty, and we’re here to help. We’ve been your partner through good times and bad, and you can rest assured that we’ll work tirelessly to help you find financial solutions for your business amid this unprecedented event.
For more information on the Paycheck Protection Program, visit our PPP page or contact us at 877-538-3335, Monday - Friday: 8:00 am - 5:00 pm, CT.