First National Bank and Trust Company SBA PPP Loan Program

2020 SBA PPP - First Draw Loans

As part of the new economic relief bill, businesses who did not apply or withdrew for an SBA PPP loan in 2020, are eligible to apply. The beginning date of the program is Monday, January 11, 2021 with a scheduled end date of March 31, 2021.

Applicants can borrow up to 2.5 times their 2019 or 2020 average monthly payroll (3.5x for Hotels and Restaurants) as reported in their tax filings. You will need to provide your corresponding 2019 or 2020 tax figures as documentation to support your payroll amounts. For sole proprietors reporting income on IRS form Schedule C, payroll is based on Net Profit. For Farmers reporting income on IRS Form Schedule F: income is now based upon gross income, not net profit shown on 2019 Schedule F. It is limited to 2.5 months with $100,000 annual gross income cap (this equates to a max loan of $20,833, for the sole proprietors income).

To begin the process, you may download the first draw application form from SBA below.

2021 SBA PPP - Second Draw Loans

1/10/2021: As part of the new economic relief bill, eligible businesses may apply for a second draw PPP loan². First National Bank and Trust Company is, once again, prepared to assist businesses with the submission of their SBA PPP Application. The beginning date of the program is Monday, January 11, 2021 with a scheduled end date of March 31, 2021.

Businesses are eligible for a second draw loan if they experienced a 25% reduction in quarterly revenues, when compared to the same quarter the year prior. For example, if the second quarter 2020 revenue experienced a reduction of 25% or more compared to the second quarter of 2019, the business would be eligible for a second draw PPP loan. Businesses are eligible if they experienced such a reduction in revenue in any quarter of 2020.

Applicants can borrow up to 2.5 times their 2019 or 2020 average monthly payroll (3.5x for Hotels and Restaurants) as reported in their tax filings. The bank must review the average monthly payroll figures either from information on file from the first PPP loan or from new information submitted by the business.

For second draw loans with a principal amount greater than $150,000, the applicant must also submit documentation adequate to establish that the applicant experienced a revenue reduction of 25% or greater in 2020 relative to 2019. For second draw loans with a principal amount of $150,000 or less, such documentation is not required at the time the borrower submits their application for a loan, but must be submitted on or before the date the borrower applies for loan forgiveness. For purposes of the PPP loan, revenue is defined by gross receipts.³ For farmers: income is now based upon gross income, not net profit shown on 2019 Schedule F. It is limited to 2.5 months with $100,000 annual gross income cap (this equates to a max loan of $20,833, for the sole proprietors income).

Business owners must also attest that you have or will have used your first PPP loan for authorized purposes on or before the date you receive your second PPP loan. Businesses permanently closed are not eligible for a second draw loan.

To begin the process, you may download the second draw application form from SBA below.

If you have any questions, please reach out to your relationship manager below. Securely submit your forgiveness paperwork by reaching out to your relationship manager and they will send you a secure email to start the process.

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