Paycheck Protection Program (PPP) Funding

First Draw PPP

Businesses that did not receive a PPP Loan in 2020

Who is eligible?

• Businesses with 500 or fewer employees
• Sole proprietors, independent contractors and eligible self-employed individuals
• Not-for-profits, including churches and 501(c)(3) membership organizations
• 501(c)(6) organizations with fewer than 300 employees
• Foods service and Accommodation (NAICS codes starting with 72) with fewer than 500 employees
• Business was in operation prior to February 15, 2020

What amounts are they eligible for?

• 2.5x average monthly payroll
• Annual cash compensation per employee is capped at $100,000
• Maximum loan amounts of $10,000,000

What documentation is required?

Businesses need to provide documentation based on business type.

Self-employed with NO employees

• 2019 or 2020 IRS Form 1040 Schedule C or Schedule F
• 2019 or 2020 IRS Form 1099-MISC –or- invoice, bank statement or book of record that established self-employment

Self-employed with employees

• 2019 or 2020 IRS Form 1040 Schedule C or Schedule F
• 2019 or 2020 IRS Form 941 & State Quarterly Wage reports for each quarter -or- 3rd-Party Payroll Tax reports for each quarter -or- IRS Form W-2 -or- IRS Form W-3

Partnerships with NO non-owner employees

• 2019 or 2020 Schedule K-1 (IRS Form 1065)

Partnerships with non-owner employees

• 2019 or 2020 Schedule K-1 (IRA Form 1065)
• 2019 or 2020 IRS Form 941 & State Quarterly Wage reports for each quarter -or- 3rd-Party Payroll Tax reports for each quarter -or- IRS Form W-2 -or- IRS Form W-3

Corporations (C & S)

• 2019 or 2020 IRS Form 941 & State Quarterly Wage reports for each quarter –or- 3rd-Party Payroll Tax reports for each quarter  -or- IRS Form W-2 -or- IRS Form W-3

Non-profit Organizations

• 2019 or 2020 IRS Form 941 & State Quarterly Wage reports for each quarter  -or- 3rd-Party Payroll Tax reports for each quarter -or- IRS Form W-2 -or- IRS Form W-3

LLC

• Will be determined by the LLC tax filing situation – could be sole proprietor, partnership or corporation tax status. See above requirements to determine documentation.

Second Draw PPP

Businesses that did receive a PPP Loan in 2020

Who is eligible?

• Businesses with 300 or fewer employees
• Business used or will use full amount of first PPP Loan by disbursement of Second Draw
• Business must show a 25% gross revenue decline in 2020 compared with 2019 (Quarter or Annual)

What amounts are they eligible for?

• 2.5x average monthly payroll
• Annual cash compensation per employee is capped at $100,000
• Maximum loan amounts of $2,000,000
• 3.5x average monthly payroll for Food Service & Accommodation (NAICS code starting with 72)

The legislation allows for the following expenses to be forgivable:

• 60% for payroll.
• The remaining 40% can be used for non-payroll expenses as indicated in the first round of PPP; and new non-payroll expenses including: software, purchases of PPE for workers, Human Resources and more.

What documentation is required?

Businesses need to provide documentation based on business type.

• Borrowers that received their original PPP loan with NBT are not required to, but still may submit documentation if using 2019 payroll.
• Borrowers that did not receive their original PPP loan with NBT are required to submit documentation as outlined under First Draw PPP