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.
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.
First Draw Loan
See Loan Amount Calculation for details.
1% on amount not forgiven
10 months following Covered Period, or 16 months maximum
Employ no more than 500 employees
Loan Amount Calculation
Revenue Reduction Test
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:
For loans not already forgiven, additional expenses can be utilized for forgiveness purposes:
Application Window Ends
March 31, 2021
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.
We'll find a branch near you. You can also visit the locations page or contact us.
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