Applying for the Paycheck Protection Program
through Lowry State Bank
We are currently accepting applications for the SBA's Paycheck Protection Program;
many dollars have already been funded through our institution!
- 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 employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Who Can Apply:
- This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
- Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
- Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
Loan Details and Forgiveness:
- The loan may be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).
- Loan payments will also be deferred for six months.
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
- Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
- This loan has a maturity of 2 years and an interest rate of 1%.
- Contact your Business Lender
- Have the following documents ready:
- Quarterly IRS Form 941 for 2019
- IRS Form 940 for 2019
- Detailed payroll reports for 2019, with summary
- Documentation that supports group health insurance costs
- Documentation that supports retirement benefit costs
- Documentation that supports state/local taxes paid
- Other documentation may be needed