2021 - Paycheck Protection Program (PPP)

A new stimulus package was signed into law on December 27, 2020, which will reopen the Payroll Protection Plan loan program. The program allows for both first and second draw loans and adds more options for using loan proceeds.

What is a First Draw PPP loan?

If you did not apply for a PPP loan in 2020, if you are eligible, you can apply for your first PPP loan (First Draw) before March 31, 2021, or until funds are exhausted.

What is a Second Draw PPP loan?

If you did apply and received a PPP loan in 2020, and are eligible, you can apply for your second PPP loan (Second Draw) before March 31, 2021, or until funds are exhausted.

If I didn’t get my first PPP loan at Skyline National Bank, can I apply for my second loan with Skyline National Bank?

Absolutely! But we will need the SBA loan number of your first PPP loan to complete the application process.

What expenses can be paid with the loan proceeds?

Loan proceeds used for the following expenses will be eligible for forgiveness:

  • At Least 60% for Payroll Costs
  • Mortgage Interest
  • Rent
  • Utilities
  • Refinancing an SBA EIDL
  • Covered Operations Expenditures
  • Covered Property Damage Costs
  • Covered Supplier Costs
What documentation will I need?

Different documentation is required for different types of borrowers. 

First Draw Required Documentation 
Second Draw Required Documentation

Other things to know:
  • Borrowers in Accommodation and Food Services (NAICS codes that start with 72) may borrow up to 3.5 times their monthly payroll costs. Other businesses may borrow 2.5 times their monthly payroll costs.
  • Businesses that are permanently closed are not eligible.
  • Loans not eligible for forgiveness will accrue interest at 1% with a five-year term.
  • There is a revenue requirement to apply for a second draw – you must demonstrate that gross receipts were at least 25% lower in the first, second, third, or fourth quarter in 2020 compared to the same quarter in 2019.

How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide 
How to Calculate Maximum Loan Amounts for Second Draw PPP Loans and What Documentation to Provide

The most up-to-date information and all eligibility requirements can be found at www.sba.gov/ppp

Ready to apply for a first draw PPP loan? 

Gather your information, complete the application (found here) and email everything to ppp@skylinenationalbank.com. 

Ready to apply for a second draw PPP loan?

Gather your information, complete the application (found here) and email everything to ppp@skylinenationalbank.com.

Need more information?

Reach out to a member of our Small Business Assistance Team. ppp@skylinenationalbank.com or 276-773-1118

CLICK HERE TO LEARN ABOUT APPLYING FOR PPP LOAN FORGIVENESS

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