Paycheck Protection Program 2021

The SBA reopened the Paycheck Protection Program (PPP) for new borrowers and certain existing PPP borrowers with enhanced guidelines.

If you are interested in this new opportunity for PPP funds, we encourage you to prepare for the various loans and programs for which you are eligible. We will provide guidance on how to apply for these programs through Citizens’ PPP Webpage. The program did have multiple changes last year and we will publish the up-to-date standard operating procedures as they become available. We have the current applications and requirements needed on the documentation checklist.

A high level summary of changes to the PPP Program:

1.    The SBA reopened the “First Draw” PPP program with more funding. This is only open to borrowers that did not receive an initial PPP loan in 2020.
2.    SBA has created and opened a “Second Draw” PPP program. This program has slightly different rules than “First Draw” PPP loans. It is targeted to borrowers that had a gross revenue reduction of 25% or greater in any quarter in 2020 versus the same quarter of 2019.
3.    Self-employed farmers may calculate their loan amount using gross farm income instead of net income on their Schedule F up to $100,000.00.
4.    There will be a simplified forgiveness for loans less than $150,000.00. There is also an expansion of eligible expenses for which a client can use the PPP funds.

We look forward in helping you process your completed PPP application in a timely manner! If you have any questions, please give us a call at 800-549-0194.

Citizens Bank Minnesota Lending Team

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

<span>%d</span> bloggers like this: