The Paycheck Protection Program (PPP) Second Draw Program is part of the new COVID-19 Relief Package that was signed into law on December 27, 2020. This program allows small businesses the opportunity to apply for a second PPP forgivable loan.
The Small Business Administration (SBA) has recently released the program guidelines for the PPP Second Draw Program, which include some changes from the previous round. To review these guidelines, please see these two documents supplied by the SBA: An overview of the First Draw PPP Loans and the Second Draw PPP Loans.
We have opened the Cornerstone Bank PPP portal to begin accepting First and Second Draw PPP loan applications. You may submit your application to us now however, the SBA is not accepting applications until Tuesday, January 19, 2021.
When accessing the portal, you will need to create a new login and password. Any existing Cornerstone Bank sign-on information will not be valid.
Please note, Cornerstone Bank’s ability to process PPP loan requests will be impacted by the volume of requests and by the SBA’s new procedure in processing applications. There will be a time-lapse from when we submit the application, and a decision is made by the SBA. Proper completion of the application and submission of all required documentation, along with the due diligence required by Cornerstone Bank, will also impact the bank’s ability to submit the application to the SBA.
Eligible businesses must:
- Have been in operation as of February 15, 2020.
- Employ no more than 300 people.
- Have used or will use the full amount of their first PPP; and
- Demonstrate a 25% reduction in gross receipts in any quarter in 2020 versus the same quarter in 2019. You will be required to provide financial statements for the two quarters.
- Borrowers can receive a loan amount of 2.5 times their average monthly payroll for 2019 or 2020 payroll costs, not to exceed $2 million.
- Entities in industries whose NAICS code begins with 72 (Accommodation and Food Services) may receive loans up to 3.5 times their average monthly payroll costs.
- Current PPP borrowers of Cornerstone Bank who continue to use their 2019 payroll records do not need to resubmit their payroll documents.
- Expanded use of the PPP money includes covered operations expenditures, covered property damage, covered supplier costs and covered work protection; however, 60% must still be used on payroll costs.
Employee and compensation levels must be maintained in the same manner as required for the First Draw PPP loan.
Please note: You must apply online; we will not accept paper applications.