Round Two of the SBA PPP (Paycheck Protection Program) is coming soon, and Community Bank Owatonna is once again participating. Here’s what businesses need to know about the second round of PPP.
First, monitor our website for release of the application and instructions, which should be available soon. Once the application is online please complete and return it to Tim Kluender, Steve Grams, or Jeff Goergen using our Secure File Transfer portal . When the SBA opens the PPP portal allowing banks to submit applications to reserve funds, you’ll want to be sure your business is near the front of the line, so apply immediately once the application is available.
Eligibility requirements are anticipated to include the following conditions (we will update these as changes are made):
- The business must have fewer than 300 employees.
- A business must show revenue declines of 25% or more in any quarter of 2020 as compared to the same quarter in 2019 (documentation will be required, along with the application).
- The loan amount equals the 2019 average monthly payroll multiplied by 2.5, up to a maximum of $2 million (restaurants and hotels can multiply their 2019 average monthly payroll by 3.5).
- The loan funds must be used for any period between 8-24 weeks immediately following receipt of the funds.
- To obtain full loan forgiveness, at least 60% of the loan funds must be used for payroll expenses. The remaining loan funds may be used to pay rent, mortgage interest, utilities, technology or computer costs, and worker protection expenses (such as PPE or other safety items related to the pandemic).
As Owatonna’s only locally owned community bank, we look forward to helping our local businesses secure the funding they so desperately need, which also helps protect jobs in our community.