PPP Loan Program Extended Until May 31st, 2021
Could your small business use financial support to cover costs? The PPP loan program has been extended and revamped to make it easier to get the funding you need.
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Borrowers may be eligible for PPP loan forgiveness. SBA is now offering PPP loans until May 31, 2021.
As of March 28, the program has approved more than 8.7 million loans totaling more than $734 billion since it was created last year, according to Small Business Administration data. For all 2021 loans by the program, 78.4% are for $50,000 and under, and the average loan is $59,000 according to CBS News.
Key Program Highlights
- The loan has a maturity rate of two years and an interest rate of 1%
- The loan covers expenses for 24 weeks starting from the loan disbursement date
- No need to make loan payments until either your forgiveness application is processed, or 10 months after your 24-week covered period ends
- No collateral or personal guarantees required
- No fees
- The loan can be forgiven and essentially turns into a non-taxable grant
First Draw PPP Loan Borrowers
If you have not received a PPP loan before, First Draw PPP loans are available to you. The following entities affected by COVID-19 may be eligible:
- Sole proprietors, independent contractors, and self-employed persons
- Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
- 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
- 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
Before you fill out an application, visit the SBA website to learn all about First Draw PPP loan eligibility and requirements. Download the application that’s right for your business:
- Download the First Draw Borrower Application Form
- Download the First Draw Borrower Application Form – Schedule C Filers Using Gross Income
Interested in applying with Vast Bank? To submit your First Draw Borrower Application to Vast Bank, please email your application and supporting documents to firstname.lastname@example.org.
Second Draw PPP Loan Borrowers
If you have previously received a PPP loan, certain businesses are eligible 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
The SBA website is the best resource to consult to learn more about Second Draw PPP loan eligibility and requirements. Complete the Second Draw Borrower application that is right for you:
Ready to apply with Vast Bank? Please note that in order to apply for a Second Draw with Vast Bank, you must have submitted a PPP Forgiveness Application for the First Draw. Learn more about How to Apply for a Second Draw PPP Loan with Vast Bank.