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Applying for Your First PPP Loan

We are currently reviewing the guidance released by the SBA and are not accepting applications at this time. Please review the information below that broadly outlines the parameters that were established in the release of the bill for businesses applying for their first PPP loan. We will update this infromation with the new guidance as soon as possible. 

Last updated on January 13, 2021

Businesses Applying for Their First PPP Loan

Some businesses that did not receive funds for a PPP loan in prior rounds of funding will be able to apply for their first PPP loan during this round. If you are a farmer or rancher, click here to read important information before applying.

Program Details
Below is an outline of the eligibility and requirements for a First Draw Loan.

Information in the table below is as of January 8, 2021 and is subject to change.

Program Details

First Draw Loan

Maximum Amount

$10 million
See Loan Amount Calculation for details.


5 years


1% on amount not forgiven

Payment Deferral

10 months following Covered Period, or 16 months maximum

Employee Size

Employ no more than 500 employees

Eligible Entities

  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
  • Sole proprietors, independent contractors, and self-employed persons
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500
  • 501(c)(6) business leagues and “destination marketing organizations” who do not receive more than 15% from lobbying and whose lobbying activities did not exceed $1 million in the most recent tax year ending prior to February 15, 2020.
  • Businesses that have temporarily closed or suspended operations are eligible.

Ineligible Entities

  • Companies receiving a grant under the Shuttered Venue Operator Grant program are ineligible.
  • Publicly traded companies, private equity firms and hedge funds and businesses in bankruptcy are ineligible. Private equity portfolio companies are eligible if they meet affiliation rules or have a waiver to those rules and meet the economic uncertainty/loan necessity certification.
  • Businesses that have permanently closed are not eligible.

Loan Amount Calculation

  • 2.5x the average monthly payroll costs in the one year prior to the loan or the 2019 or 2020 calendar year.
  • Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020. A seasonal employer is an eligible recipient which: (1) operates for no more than seven months in a year, or (2) earned no more than 1/3 of its receipts in any six months in the prior calendar year.
  • Entities in the Accommodation and Food Services industries (NAICS code 72), may receive up to 3.5x average monthly payroll costs.

Revenue Reduction Test

Not applicable

Covered Period Options

The Covered Period is the 8-week or 24-week period beginning on the PPP loan disbursement date.

You may choose between an 8 or 24-week Covered Period.

Use of Proceeds

During the eight or twenty-four weeks following receipt of the loan, you must ensure funds are used according to the following guidelines:

At least 60% must be used for payroll costs, which include costs related to the continuation of group health care benefits during periods of paid sick, medical or family leave and insurance premiums.

No more than 40% may be used to pay:

  • Covered mortgage obligations
  • Covered rent obligations
  • Covered utility payments

For loans not already forgiven, additional expenses can be utilized for forgiveness purposes:

  • Covered operations expenditures:Payment for any software, cloud computing and other human resources and accounting needs.
  • Covered property damage costs:Costs related to property damage due to public disturbances that occurred during 2020 not covered by insurance.
  • Covered supplier costs: Expenditures to a supplier pursuant to a contract, purchase order or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
  • Covered worker protection expenditure:Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent state and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.

Application Window Ends

March 31, 2021

Payroll/Non-Payroll Split

60% must be spent on payroll costs, 40% on non-payroll costs in order to receive full forgiveness. See use of proceeds above.

What Documentation Will I Need to Provide?

S-Corp, C-Corp, Non-Profits, Tribal Organizations, Partnership, and LLC
Form 941 (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever was used to calculate payroll), as applicable, or equivalent payroll processor records, along with evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions, must be provided. A partnership must also include its IRS Form 1065 K-1s.

Sole Proprietor, Self Employed and/or File a Form 1040 Schedule C with No Employees
You must provide the 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed. If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS. You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.

Sole Proprietor, Self Employed and/or File a Form 1040 Schedule C with Employees
You must supply your 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C, Form 941 (or other tax forms or equivalent payroll processor records containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate loan amount) or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions, if applicable. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.

How to Apply

If you are interested in additional funding through a Second Draw loan or would like to apply for a first PPP loan, please reach out to your banker.


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