Paycheck Protection Program (PPP)
As Amended by the Economic Aid Act
General program parameters for applicants that have not received a prior PPP loan
- Application open period – January 11, 2021 to March 31, 2021.
- Eligible businesses – a business concern (e.g., sole proprietorship, independent contractor, corporation, LLC, partnership), a tax-exempt nonprofit organization described in section 501(c)(3), 501(c)(6) or 501(c)(19) of the IRC, or a Tribal business concern described in section 31(b)(2)(C) of the Small Business Act.
- The business or organization was in operation on February 15, 2020 (exceptions for seasonal businesses) and are not permanently closed.
- The business is located in a rural area or community of 50,000 or less population or serves rural populations.
- Loan proceeds can be used for payroll and payroll related costs, rent, mortgage interest, utilities, other debt service, refinancing of an EIDL loan made between January 30, 2020 and April 3, 2020, operations expenditures, property damage costs, supplier costs and worker protection expenditures. Sixty percent of loan funds must be used for payroll cost.
- Amount that can be borrowed – 2.5 x avg monthly payroll (applicant election of 2019 or 2020 operating year); there are different calculations for businesses without payroll, e.g., sole proprietorships and for some other types of businesses.
- The interest rate is 1%.
- No collateral or personal guarantees required.
- The loan term is five (5) years.
- Payments will start ten (10) months after the end of the loan forgiveness covered period (8 or 24 weeks [borrower election] after loan disbursement); however, upon forgiveness application the loan may be partially or fully forgiven, and no payments may be due.
- The loan application form (SBA 2483 revised January 8, 2021) can be found at: https://www.sba.gov/document/sba-form-2483-paycheck-protection-program-borrower-application-form. Please carefully follow the instructions and note the various certifications. Submit the completed and signed application (scan email) along with the required documentation to any of the listed Loan Officers. If you do not have scan email capability, please contact the Loan Officer for instructions as well as for any other questions. You will receive a prompt response acknowledging receipt of your application and requesting any additional information needed for processing.
General program parameters for applicants that have received a prior PPP loan
- Application open period – January 13, 2021 to March 31, 2021.
- Full amount of first PPP loan has been used for authorized purposes.
- Must have a 25% decrease in gross receipts for corresponding period of 2019 to 2020 (may be quarter or annual comparison). Must submit comparison documentation with application for a loan request in excess of $150,000. For loans of $150,000 or less the 2019 to 2020 comparison (if not submitted at time of application) will be required when seeking future loan forgiveness or upon SBA request.
- Use of funds, terms, etc. are generally the same as above for first time PPP applicants, however, the loan calculation for accommodation and food service businesses (NAICS 72 code businesses) can be 3.5 x avg. monthly payroll instead of 2.5.
- The loan application form (SBA 2483-SD) can be found at: https://www.sba.gov/document/sba-form-2483-sd-ppp-second-draw-borrower-application-form. Please carefully follow the instructions and note the various certifications. Submit the completed and signed application (scan email) along with documentation to any of the listed Loan Officers. If you do not have scan email capability, please contact the Loan Officer for instructions as well as for any other questions. You will receive a prompt response acknowledging receipt of your application and requesting any additional information needed for processing.
The information above outlines general program parameters/requirements. If you believe you qualify for a PPP loan, you can submit your application to any of the following RCAC Loan Officers or contact any of them for more detailed information/questions.
Michele Weaver; firstname.lastname@example.org (385) 226-2844
Mike Carnes; email@example.com (559) 731-8233
Richard Bringgold; firstname.lastname@example.org (916) 413-6092
Download RCAC’s PPP flyer for your reference HERE.
Download RCAC’s guidelines for financial documentation HERE.