COVID-19 Update: Business
January 2021 Update: We are now accepting Paycheck Protection Program (PPP) loan applications for both First Draw and Second Draw PPP loans. For existing business members, the link to access the application is available in online banking and has been sent directly to your email. Businesses will have until March 31, 2021, to apply or until funds run out, whichever comes first.
If you have any questions, our dedicated PPP team is available to assist at 913.905.7012.
We will continue to provide 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 ProgramCommunityAmerica is committed to creating lasting relationships with the local business community and the individuals who work so hard to make them successful. We know there are many questions concerning COVID-19 and its impacts on your business. We are a Small Business Administration (SBA) lender, and we are here to help you. Whether you are looking for SBA loans, payment deferment options, loan extensions or advice, our team is ready to assist you.
If 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 ForgivenessAdditional expenses are now eligible to be utilized in qualifying for loan forgiveness. We are awaiting final guidance from the SBA, but a simplified forgiveness process will be available for loans of $150,000 or less. At this time, we have closed our forgiveness application portal as we update the process to reflect changes from the recent legislation.
PPP Funds & Qualified Expenses
The 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 the now extended 24-week period starting the date the funds are received, or until December 31, 2020, whichever comes first. 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