PPP Loan Updates

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

Was there a new COVID-19 relief package signed? And if so, when will the new Paycheck Protection Program loan applications be accepted?


On December 27th, President Trump has signed the $900 billion COVID-19 Relief bill passed by Congress before Christmas. Among the provisions of the COVID-19 Relief bill are $600 stimulus payments, another round of Paycheck Protection Program (PPP) loans for small business, Simplified Forgiveness for PPP loans of $150,000 or less with a one-page attestation, and many other provisions. SBA now has 10 business days to develop new guidance for the PPP program.

WestStar is closely monitoring the developments of the COVID-19 relief bill and we await guidance provided by SBA. Once the SBA provides guidance on the new round of PPP loans, WestStar will provide further information including when applications will be accepted.