CARES Act Paycheck Protection Program

PPP Forgiveness Information

Update January 2021- PPP Funding Round 2

As of January 11, 2021, the SBA is not allowing businesses to submit new applications, but we know the program requirements.

If your business meets the eligibility requirements as outlined below, you may submit your application to Osgood Bank . Osgood Bank will then submit your application as soon as the SBA allows. Funding cannot occur until the SBA approves your application. 

- Verify Eligibility Requirements for Your Business

PPP Criteria

Details

Change From Round 1

Eligibility - Revenue Loss Threshold

Businesses must demonstrate a 25% revenue loss in gross receipts for any calendar quarter of 2020 when compared with the same quarter in 2019.

This eligibility threshold was not included in the first round and serves as a needs assessment for the business.

Standard Loan Amount

2.5 times monthly payroll

No, unless classified as NAICS code 72.

Loan Amount for Accommodation and Food Service Businesses (NAICS 72)

3.5 times monthly payroll

Yes. To help eligible restaurants, the second draw is for larger amounts than the original/standard PPP loan amount.

Maximum Loan Amount

$2 million

Yes. Round two reduces the maximum loan for an eligible business form $10 million to $2 million.

Calculation of Monthly Payroll Amount

Business selects its monthly payroll as an average of monthly payroll for 2019 OR the monthly payroll for the 12-month period before the origination of the second PPP loan.

Yes. The two options for average payroll reflect the hiring/rehiring challenges of COVID-19.

Eligibility - Headcount

300 or fewer employees

Yes. The first round was 500 or less.

Eligibility - Per Location

Restaurant and lodging businesses secured an explicit carve-out, allowing them to satisfy this requirement if they have 300 or fewer employees per location (versus collectively for other industries). 

This preserves the original PPP's intent, but adjusts the figure to 300 employees rather than 500, for the the hardest hit industries.

Eligibility - Size/Affiliation

Restaurant and lodging businesses are not subject to SBA Affiliation Rules that may limit a franchisee's ability to access a loan. This waiver permits otherwise eligible companies, who are affiliated with a common franchisor company, to access a second PPP loan.

This provides the same waiver as in round one for the franchise related businesses.

Forgiveness

The second draw loans are forgivable when spent on eligible expenses (60% payroll/40% non-payroll) during a specific timeframe.

No change.

Forgiveness Structure

Funds must be spent within either 8 weeks or 24 weeks of loan origination (borrower's choice) per the Paycheck Protection Program Flexibility Act. As noted 60% of expenses must be spent on payroll costs (paychecks and group insurance, or retirement benefits) to maximize forgiveness.

No change.

New Forgivable Non-Payroll Expense

Eligible protective personal equipment (PPE), cleaning products and services, reconfiguration of spaces to enable social distancing, and supplier costs (such as perishable goods) can be included in forgivable non-payroll expenses.

Yes, these are newly added eligible expenses.

Streamlined Forgiveness

For borrowers of $150,000 or less, a simplified two-page process will be available to streamline loan forgiveness.

Yes. This process was previously set at $50,000.