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PPP Loans Round Two

Round Two of the SBA PPP (Paycheck Protection Program) has arrived, and Community Bank Owatonna is a participating lender. Any local business can apply with us, no matter where you bank. Here is what businesses need to know about the second round of PPP. 


You will find two applications on our website. If you did not receive a PPP loan in 2020, then utilize the “First Draw” application. If you did receive a PPP loan in 2020, then utilize the “Second Draw” application. Complete and return the appropriate application and all supporting documents to Tim Kluender, Steve Grams, or Jeff Goergen using our Secure File Transfer portal. The program accepts applications until March 31, 2021, however available funds may not last that long, so apply today.


Key loan eligibility details include:


*A business must have less than 500 employees (First Draw) or 300 employees (Second Draw).


*A business must show revenue declines of 25% or more in any quarter of 2020 as compared to the same quarter in 2019 (Second Draw).  Supporting documentation providing this revenue decline must be provided with the application.


*The maximum loan amount equals the 2019 or 2020 average monthly payroll, multiplied by 2.5, up to a maximum of $2 million. For Second Draw loans, businesses with an NAICS Code starting with 72 (primarily operating in the food service and hospitality industries) can multiply their average monthly payroll by 3.5.


*The loan proceeds must be spent between 8-24 weeks 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, worker protection expenses (such as PPE or other safety items related to the pandemic), supplier costs, property damage related to the 2020 looting and vandalism events, or other covered operational expenses.


*To obtain full loan forgiveness, current employee and compensation levels must be maintained throughout the 8-24 week covered period following loan disbursement.


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.




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