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PAYROLL PROTECTION PROGRAM

PAYCHECK PROTECTION PROGRAM

May 2021 Update:  PPP program funds have been exhausted, so we are no longer able to enter new applications.  If you have a pending application, please contact your loan officer. 

January 2021 Update:  The Small Business Administration (SBA), in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw PPP Loans during the week of January 11, 2021.  SBA began accepting applications for Second Draw PPP Loans on January 13, 2021.  Fidelity Bank & Trust is accepting applications for both First Draw and Second Draw PPP loans.  Please reach out to your lender for more details, or use the form at the bottom of this page.

On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed, one of the largest emergency aid and economic assistance programs ever. As your Hometown Bank, we know the importance of communicating information about the CARES Act, and how it could work with your business.

The Paycheck Protection Program (PPP) is a new $349 billion US Small Business Administration loan program for businesses impacted by the COVID-19 outbreak. Companies must have 500 or less employees to be eligible. This program runs through June 30, 2020. Businesses with more than 500 employees may qualify if they meet size standards. You can learn more about size standards here: https://www.sba.gov/size-standards/

The PPP incentivizes businesses to retain employees and rehire employees laid off or furloughed due to the COVID-19 pandemic.

Purpose

The PPP incentivizes businesses to retain employees and rehire employees laid off or furloughed due to the COVID-19 pandemic. This program may be used on payroll costs including benefits, interest on mortgage obligations, rent and utilities.

Eligibility

  • BUSINESS SIZE OR TYPE
    • You are eligible if you are a small business or a 501(c)(3) with fewer than 500 employees, an individual who operates as a sole proprietor or independent contractor, or if you otherwise meet the SBA’s small business size standard.
  • REQUIREMENTS
    • You will be required to complete a Small Business Administration (SBA) loan application. You will also need to provide a good faith certification that the uncertainty of current economic conditions makes the loan necessary to support ongoing operations, and that you will use the loan to maintain payroll, or make mortgage, lease or utility payments.

Maximum Loan Amount

Your banker will request 2019 IRS form 941 to determine annualized employee payroll, and will calculate the monthly average. The monthly average is multiplied at 2.5 times to determine a maximum loan amount. Payroll costs are capped at $100,000 annualized for each employee.

Loan Terms

The interest rate is 1.00%, with a term of up to 2 years. You may be eligible for loan forgiveness based on how the funds are spent during the 8-week period after receiving the funds.

For More Information

As your Hometown Bank, we are here to serve you, answer your questions, and ready to work with you through the entire process.

Below is a helpful link about the Paycheck Protection Program from the US Chamber of Commerce.

US CHAMBER OF COMMERCE

Review this helpful guide (PDF) from the U.S. Chamber of Commerce.

Submit A Request
Please do not include secure information such as your account or social security number in your communication