2021 PPP Loan
We are currently accepting applications for the US Small Business Administration (SBA) Paycheck Protection Program (PPP) from FNB customers. Whether you are a first-time applicant or a borrower seeking a second draw loan, we understand the urgency of PPP funding for your small business and we are working hard to facilitate this relief.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
- PPP loans have an interest rate of 1%.
- Loans issued prior to June 5, 2020 have a maturity of 2 years. Loans issued after June 5, 2020 have a maturity of 5 years.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
How To Apply
Current FNB Community Bank commercial customers can apply through their lender at FNB. Request your commercial banker to contact you by clicking here.
If you have not received a PPP loan before, a First Draw PPP Loan may be available to you.
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.
I received a PPP loan in the previous round, what do I need to show to be eligible for a second draw?
Eligible businesses that received a prior PPP loan must:
- Have 300 or fewer employees,
- Have sustained a 25 percent drop in revenue in any quarter of 2020 when compared to the same quarter in 2019, and
- A borrower must have used the full amount of its first PPP loan to apply for a second.
Am I eligible for a PPP loan in this round if I did not receive a previous PPP loan?
Yes, the program will be open for both first-time borrowers and borrowers looking for a second loan. Please note that the requirements for first-time borrowers and second time borrowers are different. Continue reading below for a non-exhaustive list of eligibility requirements and other helpful information. Please be advised that qualifying as an eligible business does not guarantee a PPP loan will be offered.
What are the loan terms and conditions?
Second Draw PPP Loans are generally subject to the same terms, conditions and requirements as First Draw PPP Loans. These terms include:
- The guarantee percentage is 100 percent.
- No collateral will be required.
- No personal guarantees will be required.
- The interest rate will be 100 basis points or one percent, calculated on a non-compounding, non-adjustable basis.
- Maturity is five years.
- All loans will be processed by all lenders under delegated authority and lenders will be permitted to rely on certifications of the borrower in order to determine eligibility of the borrower and the use of loan proceeds.
I am a first-time borrower, what types of businesses are eligible?
In addition to the businesses that were eligible in the initial round of PPP (including but not limited to small businesses, nonprofit organizations, veterans organizations, Tribal business concerns, small agricultural cooperatives that meet the SBA size standards, sole proprietors, self-employed individuals or independent contractors), during this round the program includes entities that are 501(c)(6)s, destination marketing organizations (DMOs), housing cooperatives, newspapers, broadcasters, and radio stations. Additionally, for first-time borrowers to qualify for eligibility, the entity may employ no more than 500 employees.
I am a first-time borrower, when did I have to be doing business by to qualify for a loan?
In order to be eligible for a loan, first-time businesses must have been in operation on February 15, 2020.
I am a first-time borrower, what is the maximum amount I may request under PPP?
The absolute maximum cap on loans (both first-time applicants and second draw borrowers) for PPP is $2,000,000. In your application you will be requested to submit certain documentation as proof of eligibility that will determine the amount your business is eligible for under the program. Please be advised that borrowers are not guaranteed the full amount requested in their application.
What expenses are eligible to be included in my PPP application?
In addition to the expenses that were eligible under the previous round (payroll, rent, covered mortgage interest and utilities), both first-time applicants and borrowers applying for a second draw may also use their PPP loan to cover the following expenses: covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance; covered supplier costs; and covered worker protection expenditures and personal protective equipment (PPE) to help a loan recipient comply with federal, state or local health guidance including requirements issued by the CDC, OSHA, HHS and state or local governments.
What happens if PPP loan funds are misused?
If you use PPP funds for unauthorized purposes, SBA will direct you to repay those amounts. If you knowingly use the funds for unauthorized purposes, you will be subject to additional liability such as charges for fraud. If one of your shareholders, members, or partners uses PPP funds for unauthorized purposes, SBA will have recourse against the shareholder, member, or partner for the unauthorized use.
I have a question not listed here. Whom can I contact?
Request your commercial banker to contact you by clicking here. Our hours are Monday through Friday from 9am to 5pm CST, and we will get back to you as quickly as possible.