May 4, 2021
PPP Funds Have Been Exhausted
The Small Business Administration announced that the Paycheck Protection Program funding has been exhausted and that the PPP application portal has stopped accepting applications for loans.
We will continue to provide updates as the SBA releases any additional information.
April 13, 2021
PPP Funds May Run Out Soon. Complete Your Application Today!
It was announced that the PPP application period has been extended until May 31, 2021, with an additional 30-day period through June 30, 2021, for SBA to process applications that are still pending.
DON'T WAIT! It is not guaranteed that funds will be available. The SBA’s Office of Capital Access has indicated that it is expected that PPP funding may run out in mid-to late-April.
As noted before, we continue to receive additional requests for supplementary information from the SBA that has required additional processing time, which is why we are encouraging you to complete and submit your application as soon as possible.
April 1, 2021
Paycheck Protection Program Deadline Extended To
May 31st
It was announced that the PPP application period has been extended until May 31, 2021, with an additional 30-day period through June 30, 2021, for SBA to process applications that are still pending.
Even with this extension, it is not guaranteed that funds will be available as the SBA’s Office of Capital Access has indicated that it is expected that PPP funding may run out in mid-to late-April and that any lender reviews or holds placed by the Small Business Administration will be cleared in time to secure SBA approval and funding. As noted before, we continue to receive additional requests for supplementary information from the SBA that has required additional processing time, which is why we are encouraging you to complete and submit your application as soon as possible.
March 5, 2021
The IFR also stated that this calculation change will apply only to loans approved after the rule’s effective date. Borrowers that have already had their loans approved cannot increase their PPP loan amount based on the new maximum loan formula.
February 23, 2021
NEW:
- Exclusivity Period: The SBA has announced an exclusivity period from February 24th through March 9th in which they will only accept applications from borrowers with fewer than 20 employees. Additionally, the SBA will
- Set aside $1 billion for PPP loans for sole proprietors, independent contractors and self-employed individuals in low-to-moderate income areas and the loan calculation formula has been revised.
- Eliminate the rule restricting businesses at least 20% owned by an individual who was arrested for or convicted of a felony related to financial assistance fraud in the past five years or any other felony within the previous year; the restriction will only apply to businesses with applicants or owners who are incarcerate from receiving PPP loans.
- Eliminate a rule restricting businesses at least 20% owned by an individual who is delinquent on student debt from receiving PPP loans.
- Clarify that non-citizens may apply using individual taxpayer identification numbers.
- For any other PPP loan applications, we will continue to accept and review your applications now and we will have them ready for submittal* to SBA after March 9th. *Subject to funds availability
January 14, 2021
Help is Here!
WestStar is committed to assisting area businesses and non-profit organizations apply for funding made available through the new round of forgivable Small Business Administration (SBA) Paycheck Protection Program loans.
The Time is Now to Prepare and Apply
The SBA has announced that we will be able to submit PPP First and Second Draw loan applications to their portal on Tuesday, January 19, 2021. Rest assured, we are working diligently to ensure applications are ready for submission once the SBA portal is accessible. This latest round of the PPP will be open through March 31, 2021.
- If you are interested in either a first- or second-draw PPP loan, please contact your relationship manager directly or call us at (915) 532-1000.
- If you have already reached out to us, a personalized link has or will be sent to you within the next two business days by your relationship manager. If you have not received your link by the end of day Friday, January 15, 2021, please contact us to verify the contact information we have on file is correct.
We will continue to update our website with the latest PPP loan information and encourage you to check back often, click here.
January 13, 2021
Ready to Assist You – Help is Almost Here
WestStar is committed to assisting area businesses and non-profit organizations apply for funding made available through the new round of forgivable Small Business Administration (SBA) Paycheck Protection Program loans.
Still Time to Prepare and Apply
The SBA has not yet announced when financial institutions like WestStar can submit PPP loans to the SBA portal. Rest assured, we are working diligently to ensure applications are ready for submission once the portal is accessible to us. The latest round of PPP will be open through March 31, 2021.
- If you are interested in either a first- or second-draw PPP loan, please contact your relationship manager directly or call us at (915) 532-1000.
- If you have already reached out to us, a personalized link has or will be sent to you within the next two business days by your relationship manager. If you have not received your link by end of day Friday, January 15, 2021, please contact us to verify the contact information we have on file is correct.
We will continue to update our website with the latest PPP loan information and encourage you to check back often, click here.
January 9, 2021
SBA AND TREASURY OFFICIALLY ANNOUNCE PPP
RE-OPENING
The SBA and Treasury have released new guidance and the application forms for the PPP loan pipeline. To promote access to capital, initially only “community financial institutions” as defined by the CARES Act will be able to make First Draw and Second Draw PPP Loans next week starting on January 11. The PPP will open to all participating lenders, including WestStar Bank “shortly thereafter”. The SBA did not announce the exact date.
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 as soon as the electronic application is ready.
Please Note: As the SBA and Treasury release documents and forms, they should be used solely for reference purposes only. To provide faster processing service to our clients, WestStar will only be taking applications via our PPP online application portal. Paper applications will not be accepted.
January 7, 2021
SBA Releases Details, Rules for Paycheck Protection Program Relaunch
On January 6th the SBA the first set of released interim final rules covering the pending relaunch of PPP. Below are some highlights of the changes:
- The law reauthorizing the PPP set aside specific pools of funds for first-time PPP borrowers, very small businesses and small businesses in Low to Moderate Income (LMI) neighborhoods, as well as for loans from community financial institutions.
- Existing PPP rules were amended to reflect changes on fees, borrower eligibility, loan amount, eligible non-payroll expenses, and reliance on borrower certifications.
-
Second Draw loans will be available for borrowers with 300 or fewer employees that saw a 25% or greater reduction in gross receipts during the first, second, third or fourth quarter in 2020 relative to the same quarter in 2019.
- The maximum loan amount for Second Draw loans will be $2 million.
Please note: The SBA did not announce the date on which it will reopen its portal for applications for the $284 billion round.
We will continue to provide updates as guidelines are further defined by the Treasury Department and the Small Business Administration (SBA).
Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
Interim Final Rule on Second Draw Loans
January 6, 2021
Summary of the COVID-19 Provisions under the PPP Continuation ACT
Note: This summary is for informational purposes only. The information listed is subject to change, as guidelines are further defined by the Treasury Department and the Small Business Administration (SBA).
PPP Second Draw loan eligibility:
- Business must demonstrate at least a 25% reduction in gross receipts in first, second, or third quarter of 2020 relative to same quarter in 2019; applications submitted after January 1, 2021 are able to utilize fourth quarter 2020 gross receipts;
- 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;
- Businesses that receive Shuttered Venue Operator grants are not eligible;
- Ineligible entities continue to include those listed in 13 C.F.R 120.110 and subsequent regulations except for those entities that have been otherwise made eligible including non-profits and religious organizations.
PPP Second Draw loan terms:
- Maximum loan amount is $2,000,000;
- Business may receive loan of up to 2.5 times 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 3.5x average monthly payroll costs;
- Waiver of affiliation rules continue to apply;
- 60/40 allocation between payroll and non-payroll costs continues to apply.
The following additional non-payroll expenses are now allowable and forgivable uses for PPP funds:
- 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.
Additional Information:
- 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;
- Borrowers may elect a covered period between 8 and 24 weeks;
- Simplified forgiveness application process that allows for borrowers with loans under $150,000 to submit a one-page certification to the lender;
- Covered period for First Draw PPP loans extended to March 31, 2021.
December 29, 2020