PPP Loan Information

For helpful links and videos about PPP
Eligibility and Application Instructions click here.

WestStar is committed and ready to assist businesses and non-profit organizations like yours to obtain the next round of forgivable Small Business Administration (SBA) Paycheck Protection Program loans (PPP Second Draw).

Among the provisions of the Economic Aid Act are $600 stimulus payments, $284.5 billion for Paycheck Protection Program (PPP Second Draw), Simplified Forgiveness for PPP loans of $150,000.

Please contact your relationship manager if you are interested in either a first or second draw PPP loan; or call us at (915) 532-1000. We will provide you a personalized application link so you can begin completing the online loan application.

To stay up-to-date on the latest PPP loan updates, click here.

First PPP Loan Updates

Second Draw PPP Loan

Existing PPP rules were amended to reflect changes on, borrower eligibility, loan amount, eligible non-payroll expenses, reliance on borrower certifications, and fees.

  • Maximum loan amount: $10,000,000.
  • Borrowers may elect a covered period between 8 and 24 weeks.
  • Eligible business types have been expanded.
  • Expansion of allowable expenses.
  • Covered period for first draw PPP loans extended to March 31, 2021.

For additional information on eligibility and terms for PPP loans, please click here.

ELIGIBILITY:

  • Business must demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
  • Business may not have more than 300 employees (or 300 employees per physical location if the business has multiple locations).
  • Business must have used or will use the full amount of first PPP loan.
  • Publicly traded companies are ineligible.
  • Businesses not in operation on or before February 15, 2020 are not eligible.
  • Ineligible entities continue to include those listed in 13 C.F.R 120.110 and subsequent regulations exceptfor those entities that have been otherwise made eligible including non-profits and religious organizations.

  • LOAN TERMS:

    • Maximum loan amount: $2,000,000.
    • Business may receive loan of up to 2.5 times their average monthly payroll costs in the 12 months prior to the loan or the calendar year; entities not in operation for a full year as of February 15, 2020 may use the sum of their average monthly payroll costs.
    • Businesses assigned NAICS code 72 (accommodations and food services) may receive loans up to 3.5 times their average monthly payroll costs.
    • Waiver of affiliation rules continue to apply.
    • 60/40 allocation between payroll and non-payroll costs continues to apply.

PPP Loan Forgiveness

  • Simplified forgiveness application process that allows for borrowers with loans under $150,000 to submit a one-page certification to the lender.
  • Eligible non-payroll expenses for forgiveness have been expanded.
  • 60/40 allocation between payroll and non-payroll expenses continues to apply.


Additional Non-Payroll Expenses

Expanded eligible non-payroll expenses apply to both PPP loans made before or after enactment of the PPP Continuation Act, except to the extent that PPP loans have already been forgiven;

  • Software, cloud computing, and other accounting and HR needs;
  • Payments to a supplier under a contract, purchase order or order for goods in effect prior to the borrower’s receiving the loan that were essential to the borrower’s operations at the time the payments were made; expenditures for perishable goods are eligible before and during the life of the loan;
  • Personal Protective Equipment (PPE) and adaptive investments purchased to help comply with federal and state health and safety guidelines related to COVID-19 between March 1, 2020 and the end of the national emergency declaration;
  • Expenses related to property damage due to public disturbances occurring in 2020 and not covered by insurance;
  • 60/40 allocation between payroll and non-payroll costs continues to apply.

 

PPP Loan Terms and Eligibility

LOAN TERMS:
  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5, 2020 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 weeks or 24 weeks).
  • No collateral or personal guarantees are required.
  • Neither the government nor lenders will charge small businesses any fees.
ELIGIBILITY:
  • A small business, independent contractor, eligible self-employed individual, or sole proprietor.
  • A tax-exempt nonprofit organization described in section 501(c)(3) of the Internal Revenue Code (IRC), a tax-exempt veterans organization described in section 501(c)(19) of the IRC, a Tribal business concern described in section 31(b)(2)(C) of the Small Business Act, and you employ no more than the greater of 500 employees .
  • A housing cooperative that employs no more than 300 employees.
  • A news organization that is majority owned or controlled by a NAICS code 511110 or 5151 business or a nonprofit public broadcasting entity with a trade or business under NAICS 511110 or 5151, which employs no more than 500 employees.

INELIGIBLE BUSINESSES:

  • A business or organization not in operation on February 15, 2020.
  • A business that has permanently closed.
  • A business engaged in any activity that is illegal under Federal, state, or local law.
  • A household employer (individuals who employ household employees such as nannies or housekeepers).
  • Lobby organizations.
  • Organizations involved in political activities or public policy.
  • Lenders or financial services businesses.
  • Cannabis businesses (or any other businesses that deal with illegal products at the federal level).
  • A business with an owner of 20% or more of the equity of the applicant is presently incarcerated or, for any felony, presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of, pleaded guilty or nolo contendere to, or commenced any form of parole or probation (including probation before judgment) for, a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years or any other felony within the last year.
  • A business owned or controlled by you or any of your owners, who has ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted within the last seven years and caused a loss to the government.
  • The President, the Vice President, the head of an Executive Department, or a Member of Congress, or the spouse of such person as determined under applicable common law, directly or indirectly holds a controlling interest in your business.
  • Those entities that have an affiliation with the People’s Republic of China or Hong Kong or that have a member on their board of directors that is a resident of the People’s Republic of China.
  • Registrants under the Foreign Agents Registration Act.
  • Entities that have received or will receive a grant under the Shuttered Venue Operator Grant program.

 

Additional Resources

Top-line Overview of PPP First Draw Loans

 Top-line Overview of PPP Second Draw Loans