We know you’re doing your best to take care of your customers and your employees.
While you assess the current environment and future of your business, we want you to know that you’re not alone – Patriot is your partner with assistance and resources.
Note: Looking for personal assistance resources? Visit our COVID personal resources page.
The CARES Act, the COVID-19 relief bill passed by Congress, increased the role of the Small Business Administration (SBA) in efforts to assist businesses impacted by the pandemic. The SBA offers several programs – including the Paycheck Protection Program (PPP) loan and the Economic Injury Disaster loan (EIDL) – to ease the economic impact of COVID-19 on your business.
The Paycheck Protection Program (PPP)
As part of the newest stimulus package (2021), additional funding was made available for the Paycheck Protection Program. Funding for this latest round of PPP has been exhausted.
Update May 5, 2021: We are no longer accepting applications for the latest round of PPP.
PPP First Draw Loan – First-Time Borrowers
Eligibility: PPP first-time borrowers include –
- Businesses and not-for-profit organizations, including churches, with 500 employees or fewer, even if they are eligible for other SBA 7(a) loans
- Sole proprietors, independent contractors, and self-employed individuals
- Eligible businesses in the accommodation and food services industry (NAICS Code 72) with 500 or fewer employees per location
- Eligible 501(c)(6) business organizations, such as chambers of commerce, visitors bureaus, etc., with 500 employees or fewer
- Eligible news organizations (NAICS code 511110 or 5151) with 500 or fewer employees per location
*Note: Requirements are based on the type of business entity
PPP Second Draw Loan
Small businesses and not-for-profit organizations that HAVE received a previous PPP loan (Second Draw borrowers) may submit applications for a second PPP loan. To be eligible for a second-draw PPP loan, an applicant must meet ALL the following requirements:
- Has 300 or fewer employees
- Has committed to using the full amount of the funds from their first PPP loan before receiving funds from the second draw loan
- Experienced a 25% decline in gross revenue during any quarter in 2020 (compared with the same quarter in 2019), or had overall revenue in 2020 reduced by at least 25% compared to 2019
- Is not a debtor in a bankruptcy proceeding at the time of the application or at any time prior to receiving the funds
- Eligibility for Second Time Borrowers
Loan Forgiveness Overview
Loan Forgiveness Overview
One of the most notable features of Payroll Protection Loans (PPP loans) is that all, or some, of the loan amount could be forgiven if:
- The funds are used within 24 weeks of the day you receive the funds.
- The funds are used for approved purposes including:
- Payroll costs, including salaries, wages, tips, commission, etc. up to $100,000 annualized per employee whose principal residence is in the U.S.
- Employer-paid state and local payroll taxes (not federal employment taxes)
- Employer-paid vacation, parental, family, medical, or sick leave except for payments for which a credit is allowed under the Families First Coronavirus Response Act (FFCRA)
- Employer-paid group health insurance premiums
- Employer-paid retirement benefits
- Rent and lease agreements that originated before Feb. 15, 2020
- Mortgage interest (not principal payments or prepayments) that were in force before Feb. 15, 2020
- Utilities, including electricity, gas, water, transportation, telephone, and internet for services that began before Feb. 15, 2020
- Additional approved purposes include: Covered Operations Expenditures, Property Damage, Supplier Costs, and Worker Protection Expenditures
- No more than 40% of the loan forgiveness request is for non-payroll costs. (To be eligible for full loan forgiveness, borrowers must use no more than 40% of the total loan amount for non-payroll costs).
- For details from the SBA, visit PPP or EIDL.
- To receive loan forgiveness on either a First Draw PPP Loan or a Second Draw PPP Loan, a borrower must complete and submit the Loan Forgiveness Application. For Second Draw PPP Loans in excess of $150,000, the borrower must submit its loan forgiveness application for the First Draw PPP Loan before or simultaneously with the loan forgiveness application for the Second Draw PPP Loan, even if the calculated amount of forgiveness on the First Draw PPP Loan is zero.
- Visit the adjacent link for more information: Loan Forgiveness Requirements
You will need your SBA Loan Number and TIN/SSN to begin the process. You may be required to provide various documents that will be used to verify your payroll and non-payroll amounts as required per the program regulations.
Depending on your eligibility, you need to complete one of the following PPP forgiveness applications:
- Simplified Forgiveness Application
- for PPP loans of $150,000 or less
For applications above $150,000 one of the applications below would be required based upon your situation:
- EZ Application for PPP loans above $150,000 that meet certain criteria (see checklist on page 5 of the attachment “PPP Loan Forgiveness Form 3508EZ” below to find out if you can use EZ Application) PPP Loan Forgiveness Application Form 3508EZ
- Regular Application for all other PPP borrowers PPP Loan Forgiveness Application Form 3508
If you are ready to apply for PPP loan forgiveness, a list of required documents is available by visiting the SBA’s Paycheck Protection Program webpage.
Additional Helpful Resources for Loan Forgiveness
Additional helpful links related to the PPP Loan Program:
- PPP Second Draw Application Instructions
- Overview Sheet for entities that did NOT participate in Round 1
- Overview Sheet for entities that received funds in Round 1
- PPP Second Draw Worksheet for NAICS 72
- PPP2 Worksheet for Non Accommodation and Food Industry Sectors
- PPP Average Monthly Payroll Worksheet
- PPP Frequently Asked Questions
- PPP Loan Forgiveness Application Form 3508
- PPP Loan Forgiveness Application Form 3508S
- PPP Loan Forgiveness Application Form 3508EZ
- Loan Forgiveness Requirements
- Borrower’s Disclosure of Certain Controlling Interests
SBA Economic Injury Disaster Loans (EIDL)
Available directly through the SBA, the Economic Injury Disaster Loan aims to help small businesses overcome the temporary loss of revenue with an advance of up to $10,000.Apply for EIDL through the SBA
- Guidance for business & employers from the SBA (sba.gov)
- COVID-19 Business Resumption Toolkit from the SBA (sba.gov)
- Assistance for small businesses from the US Treasury (treasury.gov)
- Franklin County First Fund (FCFF) from the FCADC
- COVID-19 Emergency Relief Manufacturing Fund from the State of Maryland
- Franklin County Area Development Corporation (FCADC)
- Greater Chambersburg Chamber of Commerce
- Washington County Chamber of Commerce
- United States Chamber of Commerce
- Washington County website.
Please contact us if you need assistance or have questions. We’ll be happy to help. You can reach us by:
- Calling (888) 777-9982
- Visiting our Business Services team page
- Contacting one of our business lenders directly:
- Karen Boyer (240) 850-7014
- Eric Foreman (717) 709-2514
- Mary Barry (301) 676-1257