Tue, January 26, 2021 at 05:51 pm EST
Second Round - PPP Program
The Small Business Administration (SBA), in consultation with the U.S. Treasury Department, has released guidance on the second round of the Paycheck Protection Program (PPP). The second round consists of two separate programs; First Draw PPP and Second Draw PPP.
First Draw PPP Loans
First Draw PPP Loans are for applicants that did not receive a PPP loan prior to August 8, 2020. FAIRWINDS will not be accepting these applications. We encourage you to seek other financial providers if you want to apply before the application due date of March 31, 2021.
Second Draw PPP Loans
Second Draw PPP Loans are for those borrowers that previously received a PPP First Draw Loan. For most borrowers, the maximum loan amount of a PPP Second Draw Loan is 2.5x your average monthly 2019 or 2020 payroll costs up to $2 million. FAIRWINDS is accepting Second Draw PPP Loans from our qualified business members that previously received a PPP Loan from us. (All eligible business members have been notified by email.)
Eligibility
- Previously received a First Draw PPP Loan and will or have used the full amount only for authorized uses
- Have no more than 300 employees
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Funds Usage
- Payroll costs, including benefits
- Mortgage interest
- Rent
- Utilities
- Worker protection costs related to COVID-19
- Uninsured property damage costs caused by looting or vandalism during 2020
- Certain supplier costs and expenses for operations
Full Forgiveness Terms
Second Draw PPP Loans may qualify for full loan forgiveness if during the 8 to 24-week covered period following loan disbursement:
- Employee compensation levels are maintained in the same manner as required for the First Draw PPP loan;
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60% of the proceeds are spent on payroll costs.
First Round - PPP Program
Recently, a new bill was signed that will substantially streamline the loan Forgiveness Application process for loans of $150,000 and less. We are awaiting further guidance and instructions from the Treasury and Small Business Administration (SBA).
Please note that we are not accepting Forgiveness Applications at our FAIRWINDS locations or through the mail. We will keep you updated regarding implementation of the new streamlined application process and how to submit.
If you received a PPP loan from FAIRWINDS, we encourage you to review the Loan Forgiveness Application and begin collecting the necessary documentation to complete the application. A checklist is provided below to assist with this. We will inform you by email and on this website page when the loan forgiveness online application portal is live.
Click on the options below to learn more about the PPP loan forgiveness options.
You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using the SBA EZ Application if you can check at least one of the three boxes below.
- The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
- The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined here) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, "employees" means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);
AND
The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details. - The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined here) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, "employees" means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);
AND
The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.
PPP Loan Forgiveness - EZ Application Documents
You (the Borrower) must apply for forgiveness of your Paycheck Protection Program (PPP) loan using the full SBA Application if at least one of the three boxes above did not apply to you.
PPP Loan Forgiveness - Revised Full Application Documents
Resources
FAIRWINDS Email Communications
- 8/14/20 - PPP Loan Forgiveness App Updates
- 7/29/20 - PPP Loan Forgiveness App Updates
- 7/06/20 - PPP Coverage Periods
- 6/29/20 - PPP EZ Application Option
- 6/09/20 - PPP Legislation Update
- 6/03/20 - PPP SBA Loan Number
- 5/26/20 - PPP Loan Forgiveness Checklist
- 5/20/20 - PPP Loan Forgiveness Application
- 5/13/20 - PPP Recommended Resources
- 4/29/20 - PPP Guidance Email