Paycheck Protection Program


 

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!

 

 

 

Loan Information:

  • 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%.

 

Source: www.sba.gov

 


To Apply:

  • 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