You received an email from us earlier this week with some inaccurate or incomplete information. Please refer to this email for the most up to date info!
We put the corrections in bold.
If you received a PPP loan or want to apply for round 2, keep reading!
We love to see positive things happening!
I received an email from U.S. Bank regarding PPP loan forgiveness applications and wanted to be sure that everyone that took out a PPP loan has this information:
Loan Forgiveness Applications
Most lending institutions (including U.S. Bank) are now accepting loan forgiveness applications.
If you have questions regarding your loan forgiveness, your first point of contact should be the bank representative that you worked with to obtain your loan. Even if you applied on your own, your first point of contact for all questions should be through the bank you applied with. If you need documents from us, please reply to this email and we will do our best to help you out!
After you apply, your lender is required by law to provide a response to your loan forgiveness app within 60 days.
You may also refer to this guide for more PPP loan forgiveness guidance.
You should also know that you do not need to apply for round 1 forgiveness before applying for or receiving round 2 funds, but round 1 funds must be 100% used before applying for round 2.
You can read more from U.S. Bank here.
If you’d like more information on PPP loan forgiveness timelines and what records you might be required to show for forgiveness, see this link.
PPP Round 2 Applications
To obtain round 2 PPP funds, you must have:
- Used the full amount of your first PPP loan
- Have fewer than 300 employees
- Have experienced at least a 25% reduction in gross receipts in any corresponding quarter in 2020 when compared against 2019 results. For example, you may compare Q2 of 2020 with Q2 of 2019, but not Q2 of 2020 with Q3 of 2019. If you need statements from us, please don’t hesitate to reach out.
Additionally, you should know:
- You can apply through March or until the $284 Billion is exhausted
- Smaller institutions started accepting round 2 loan applications last week, and larger institutions (U.S. Bank, etc) will begin accepting applications this week.
- The SBA has 90 days to evaluate applications and may contact you for more information.
- The available loan amount to you will be the same as the first time around – 2.5 times the average monthly 2019 or 2020 payroll costs (how much you paid yourself or your annual net income, depending on your business entity type. LLC: use your net income for 2019. If you use payroll, use your W2 income to calculate the loan amount).
- At least 60% of the money must go toward expenses such as rent, mortgage, interest, and utilities, as well as payroll expenses.
- If you did not receive a round 1 loan, you can still apply.
- Supporting documents are not needed when applying for a loan that is $150k or less, but will be required when applying for forgiveness.