COVID-19 Update: Business
May 4, 2021 Update: We are no longer accepting loan applications for the Paycheck Protection Program. The SBA has now closed their application portal due to funds being exhausted. If you have any questions, please call our dedicated PPP team at 913.905.7012.
We will provide further updates on this page as more information becomes available. Please watch your email, as we expect to communicate more details as we have them in the coming weeks. If you are not currently a business member with us, we encourage you to visit your nearest branch location to open an account for the quickest access to PPP communications and funding. During this time, we also encourage you to contact your accountant and/or legal counsel to discuss how the new legislation may impact your business and help you best prepare for next steps.
Paycheck Protection ProgramIf you have questions about your PPP loan with CommunityAmerica please call our business banking team at 913.905.7012.
PPP First Draw LoansThe COVID relief bill allocated approximately $284 billion in additional funding for PPP loans. Businesses that did not receive a loan from the earlier rounds of funding, or a First Draw PPP Loan, are eligible to apply for this most recent round of funding.
PPP Second Draw LoansBusinesses that have already received funding through a First Draw PPP loan are also eligible to apply for additional financial assistance through a Second Draw PPP loan from the new round of funding. Second Draw PPP loans will be capped at $2 million, and businesses are required to meet the following additional criteria:
- Must have utilized or will utilize all of the First Draw
- PPP loan Must have fewer than 300 employees
- Must have experienced at least a 25% reduction in revenue in a quarter for 2020, compared to the same quarter in 2019
PPP Loan ForgivenessThe SBA is now accepting forgiveness applications, with a simplified forgiveness process for loans of $150,000 or less. We are re-opening our loan forgiveness application portal at this time, and a link to access the application will be sent through direct email. We will send all emails with links to apply for forgiveness to businesses who had a First Draw PPP loan in 2020, in order based on the loan disbursement date. All 2020 borrowers can expect to receive a link to apply by the end of May.
PPP Funds & Qualified ExpensesThe Paycheck Protection Program was created to help you keep your employees at their current base pay and cover other essential business costs. To be 100% forgiven, 60% of funds must cover payroll costs, while up to 40% can be used for other qualifying costs (like rent, leases and utilities) over a 24-week period starting the date the funds are received. Learn more about qualifying for loan forgiveness here.
Any remaining loan amount, after forgiveness, will need to be repaid. You will not be required to start your PPP loan repayment until your forgiveness application has been completed and processed, and you will have up to 10 months after the end of your covered period to apply for forgiveness. After that time, you will be required to pay the loan back over the remaining 5-year period with a fixed interest rate of 1%.
The SBA defines qualifying payroll costs as:
- Full-time and part-time employee (who lives in the U.S.) compensation in the form of salary, wages, commissions or anything similar
- Cash tips or equivalent, based on employer records of past tips or reasonable, good-faith employer estimates if there are missing or no historical records
- Vacation, parental, family, medical or sick leave payments
- Healthcare coverage, including insurance premiums, and retirement
- State and local tax payments based on employee compensation
- Wage, commission, income or net earnings from self-earners or similar compensation
No more than 40% of funds can be used to cover:
- Costs related to group healthcare benefits during paid sick, medical or family leave, as well as insurance premiums
- Mortgage interest payments (not including mortgage prepayments or principal payments) – as long as the mortgage was signed before February 15, 2020
- Rent – as long as the lease agreement was in effect before February 15, 2020
- Utilities – includes expenses such as electricity, water, gas, sewage, telephone services, internet and transportation costs, as long as service began before February 15, 2020
As a result of the latest legislation, new qualifying expenses include:
- Operations expenditures – such as payments to business software or cloud computing systems, product or delivery, the processing, payment, or tracking of payroll expenses, and other expenses related to human resources and accounting needs
- Property damage costs – includes costs related to property damage from public disturbances that occurred in 2020 and are not covered by insurance
- Supplier costs – expenditures to suppliers that are essential to the recipient’s current operations
- Worker protection – worker protection and facility modification expenditures, including personal protective equipment in order to comply with COVID-19 federal health and safety guidelines