3/2/2021 UPDATE: The U.S. Small Business Administration (SBA) issued new Paycheck Protection Program (PPP) rules that allow self-employed individuals who file Form 1040, Schedule C, Profit or Loss From Business, to calculate their maximum loan amount using gross income instead of net profit. The calculation change is detailed in the interim final rule published by the SBA. They also released PPP applications specifically for Schedule C filers: New PPP first-draw (Form 2483-C) and second-draw (Form 2483-SD-C) application forms.
2/21/21 UPDATE: The Biden-Harris administration has announced changes to the Paycheck Protection Program which aim to help sole proprietors, independent contractors, and self-employed individuals receive more financial support. Details on the changes can be found here.
1/12/21 UPDATE: As a provision of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act) passed in December, the Small Business Administration (SBA) announced a second offering of the federal Paycheck Protection Program – a financial lifeline to small businesses that have been suffering from the impacts of the coronavirus pandemic. This second offering allows eligible applicants who did not receive a PPP loan prior to August 8, 2020 to obtain a PPP First Draw Loan on or before March 31, 2021 (subject to eligibility requirements). Existing PPP borrowers may be eligible to receive a Second Draw PPP Loan. While job retention is still the goal, the new loans will come with more flexibility.
According to the SBA, key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
- The Program provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers may request an increase to their original PPP loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
River City Bank is committed to supporting our businesses during this challenging time. We are now accepting applications for the Paycheck Protection Program. If you’re an eligible River City Bank business client that is interested in the PPP program, please follow the guidance below to submit your completed application and required documentation.
- DOWNLOAD THE APPLICATION.
- GATHER REQUIRED DOCUMENTS.
Refer to the list of required documents below.
- SUBMIT YOUR APPLICATION USING OUR SECURE FILE TRANSFER FORM
All applications and required documentation MUST be submitted through the PPP Secure File Transfer link. Secure File Transfer is a secure tool that allows users to upload documents electronically.
- Quarterly IRS forms 940, 941, or 944 for the following dates:
- March 31, 2019 and June 30, 2019
- March 31, 2020 and June 30, 2020
- Documentation in the form of canceled checks, payment receipts, and bank statements showing payment of the following items from 2/15/20 to 6/30/20:
- Mortgage Interest
- Rent payments
- Completed 2019 tax return OR 2019 Profit and Loss Report and Balance Sheet
- Payroll reports for 2019 and 2020 year to date showing the following by employee and/or officers:
- Gross wages
- Paid time off
- Paid vacation
- Pay for family medical leave
- State and local taxes (form 940, 941, or 944)
- 1099’s for independent contractors (if applicable)
- Documentation showing:
- Funds received in the form of an Economic Injury loan since 1/31/20
- Payments for group health care benefits including premiums paid in 2019 to 2020 year to date
- Payment of any retirement benefits paid in 2019 and 2020 year to date
PPP reference information
- U.S. Paycheck Protection Program Overview
- FAQ for PPP Borrowers
- SBA Franchise Directory (effective 1/6/21)
- Small Business Guidance & Loan Resources
- Interim Final Rule #1 – PPP as Amended by Economic Aid Act
- Interim Final Rule #2 – PPP Second Draw Loans
- The CARES Act Full Text
Economic Injury Disaster Loan
To apply for a COVID-19 Economic Injury Disaster Loan, click here.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.
Under this program:
- The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
- The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
scams & fraud alerts
In these unprecedented times, be alert for potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). Fraudsters have already begun targeting small business owners during these economically difficult times. Be on the lookout for grant fraud, loan fraud, and phishing.
- SBA does not initiate contact on either 7a or Disaster loans or grants. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud.
- If you are contacted by someone promising to get approval of an SBA loan, but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud.
- SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate.
- If you have a question about getting a SBA disaster loan, call 800-659-2955 or send an email to firstname.lastname@example.org.
- If you have questions about other SBA lending products, call SBA’s Answer Desk at 800-827-5722 or send an email to email@example.com.
- If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with the actual application number.
- Look out for phishing attacks/scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII),to obtain personal banking access, or to install ransomware/malware on your computer.
- Any email communication from SBA will come from accounts ending with sba.gov.
- The presence of an SBA logo on a webpage does not guaranty the information is accurate or endorsed by SBA. Please cross-reference any information you receive with information available at www.sba.gov.
Report any suspected fraud to OIG’s Hotline at 800-767-0385 or online at, https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline.