SBA Paycheck Protection Program

If your business has been impacted by COVID-19, the CARES Act's SBA Paycheck Protection Program can help you through this challenging time.

SBA Paycheck Protection Program

The Paycheck Protection Program (PPP) of the U.S. Small Business Administration is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Funds can be used for payroll costs, mortgage interest, rent, and utilities. Loans may be forgiven if certain criteria are met. You can find additional information about the program at the U.S. Small Business Administration website.

We are accepting PPP loan applications until August 3, 2020 in order to have time to process and submit to the SBA by August 8, 2020.

Frequently Asked Questions

Read our Frequently Asked Questions below for more information about the program, eligibility, and application requirements. 

The U.S. Government has approved the second phase of the SBA Paycheck Protection Program. Due to high demand, involved documentation requirements and processing time, we are only accepting applications from existing customers with a business checking account. Please inquire with your Relationship Manager or Branch Manager for further details.


El Gobierno de los Estados Unidos ha aprobado la segunda fase del Programa de protección de sueldos de la SBA. Debido a la gran demanda, los requisitos de documentación y el tiempo de procesamiento, solo aceptamos solicitudes de clientes existentes con una cuenta comercial de cheques. Consulte con su Gerente de Relaciones o Gerente de su Sucursal para obtener más detalles.

Frequently Asked Questions

All small businesses with 500 or fewer employees, including:

  • Nonprofit organizations
  • Veteran organizations
  • Tribal business concerns
  • Sole proprietors
  • Independent contractors

Businesses with more than 500 employees are eligible in certain industries:

  • If you are in the hotel and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis.
  • If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal affiliation rules do not apply.

Loan proceeds must be used for:

  • Payroll costs, including benefits
  • Interest on mortgage obligations, incurred before February 15, 2020
  • Rent, under lease agreements in place before February 15, 2020
  • Utilities, for which service began before February 15, 2020

Due to anticipated high subscription, not more than 40% of the loan proceeds may be used for non-payroll costs.

Payroll costs include:

  • Salary, wage, commission, or tips (capped at $100,000 annualized for each employee)*
  • Payments for vacation, parental, family, medical, or sick leave
  • Allowance for dismissal or separation (severance costs)
  • Group health care benefits, including insurance premiums
  • Retirement benefits
  • State or local tax assessed on employee compensation 
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 annualized for each employee.

*Only salaries/wages from employees whose primary residence is in the United States.

Eligible applicants can borrow 2.5 times the business's average monthly payroll up to $10 million. Payroll costs are capped at $100,000 on an annualized basis for each employee.

We encourage you to consult with your dedicated relationship manager or accountant for more information.

Full loan amounts may be forgiven as long as:

  • Loan proceeds are used to cover payroll costs, mortgage interest, rent, and utility costs over the 8 week period after the loan is funded; and
  • Full-time equivalent (FTE) staffing and compensation levels are maintained.

Loan forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Borrowers may owe money when the loan is due if full-time equivalent staffing declines, or if salaries and wages decrease by more than 25% for any employee that made less than $100,000 annualized in 2019.

1% fixed rate.

You have up to 10 months after your covered period to submit for loan forgiveness during which you will not make any interest payments. If your loan is fully forgiven, you will not need to pay any interest. If all or a portion of your loan is not forgiven, you will begin paying interest once the bank and the SBA determines the amount you owe.

If your PPP loan was originated before June 5th, 2020, your loan will be due in two years. If you received your loan on or after June 5th, 2020, your loan will be due in five years. The loan can be paid earlier with no prepayment penalties or fees.

No. No collateral is required.

No. There is no personal guarantee requirement. However, if the proceeds are used for fraudulent purposes, the U.S. government may pursue criminal charges against you.


  1. Valid business license
  2. Formation documents (Articles of Incorporation, LLC Operating Agreement, General Partnership Agreement)
  3. Payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date
  4. 2019 Payroll tax filings reported to the IRS (Forms 940/941 or W-3)
  5. 2019 Federal Tax Return (Schedule C from Form 1040, Form 1065 including K-1, Form 1120 or Form 1120S)*
  6. Any other payroll data or documentation as deemed necessary by the Bank

Items that are eligible:

  • Salary, wage, commission, or tips (capped at $100,000 annualized for each employee)
  • Payments for vacation, parental, family, medical, or sick leave
  • Allowance for dismissal or separation (severance costs)
  • Group health care benefits, including insurance premiums
  • Retirement benefits
  • State or local tax assessed on employee compensation



Applications accepted starting April 10th

  1. 2019 Payroll tax filings reported to the IRS (Forms 940/941 or W-3)
  2. 2019 Forms 1099-MISC 
  3. 2019 Federal Tax Return (Schedule C from Form 1040)*

Items that are eligible:

  • Wage, commission, income, net earnings from self-employment, or similar compensation; and
  • An amount that is not more than $100,000 in one year, as pro-rated for the covered period


*If you have not yet filed a 2019 Federal Tax Return, you will still need to fill it out and compute the values. 2019 Federal Tax Return forms are required even if they have been filed with the IRS at the time of application. 

We recommend your accountant review these definitions in preparing payroll records for loan submission. The Act also requires documentation for loan forgiveness.