Full details on the Paycheck Protection Program can be found on the SBA Website
Applying for a PPP Loan
If you received a PPP loan for this business from High Plains Bank in 2020
- On Friday 1/16/21, you should have received an invitation via email to apply for another PPP loan. If you did not receive an invitation, please check your spam folder and then request a phone call.
If you did not receive a PPP loan for this business from High Plains Bank in 2020
Categories of PPP Loans
You will find Paycheck Protection Program (PPP) updates in three categories.
2nd Draw PPP Loans
This is a loan program for businesses (including independent contractors, sole-proprietors and eligible self-employed) and non-profit organizations that received a PPP Loan in 2020 and are eligible to apply for a second PPP Loan in 2021.
1st Draw PPP Loans
This is a loan program for businesses (including independent contractors, sole-proprietors and eligible self-employed) and non-profit organizations that DID NOT receive a PPP Loan in 2020 and are eligible for the original PPP Loan program. Those who received a PPP Loan in 2020 and have NOT yet received forgiveness may be eligible to increase their 2020 PPP Loan based on changes in methods to calculate the maximum loan.
PPP Loan Forgiveness
The update on PPP Forgiveness applies to both Second Draw and First Draw PPP Loans.
2nd Draw PPP Loans
Who is eligible for a 2nd Draw PPP Loan?
- PPP Borrowers who received a PPP Loan in 2020
- PPP Borrowers who use all of their 1st Draw PPP proceeds prior to receiving their 2nd Draw PPP Loan
NOTE: It is not necessary to apply for or receive forgiveness for the 1st Draw PPP Loan prior to receiving the 2nd Draw PPP Loan.
- Borrowers also must meet these qualifications:
- 300 employees or fewer
- Entity was operational prior to February 15, 2020. Businesses opened after February 15, 2020, are not eligible.
- Experienced a reduction of 25% or more in gross receipts in any quarter of 2020 when compared to the same quarter of 2019.
What is the maximum loan amount for a 2nd Draw PPP Loan?
- Up to 2.5 times average monthly payroll costs based on either 2019 or 2020 calendar year or 1-year period before the PPP loan is made.
- Farmers and ranchers who were in business prior to February 15, 2020 are eligible for 2019 or 2020 Schedule F gross income (capped at $100,000) divided by 12 and multiplied by 2.5 PLUS employee payroll calculations (2.5 x average monthly payroll costs)
- NAICS 72 entities (Accomodation and Food Services) up to 3.5 times average monthly payroll costs in Calendar year 2019 or 2020, or the 1-year period before the 2nd Draw PPP loan is made
- Sole proprietors, independent contractors, and eligible self-employed persons will qualify for loan based on 2019 or 2020 IRS Schedule C or Form 1065.
- Maximum loan is $2 million
NOTE: Most customers will qualify for the same maximum loan amount for Draw 2 as Draw 1, with the exception of Accommodation, Food Service and Farmers/Ranchers who may qualify for a larger loan than in 2020.
How may 2nd Draw PPP Loan proceeds be used?
- Payroll costs - at least 60% must be used for this purpose to qualify for full forgiveness.
- Rent and/or lease payments
- Business interest expense
- Utilities
- Covered worker protection and facility modification expenditures to comply with COVID-19 health and safety guidelines
- Expenditures to suppliers that are essential at time of purchase to sustain operations
- Covered operating expenses such as accounting, computing and software needs
What documentation is needed for 2nd Draw PPP Loans?
- Customers who received a 1st Draw PPP Loan from High Plains Bank and choose to use 2019 Payroll Costs to calculate loan amount do NOT need to submit 2019 Payroll Costs documentation a second time.
- Customers who are applying to High Plains Bank for the first time will need to provide either 2019 or 2020 Payroll Cost documentation.
- Customers who choose to use 2020 Payroll Costs to calculate loan amount will need to submit 2020 Payroll Cost documentation.
- Customers applying for loans of more than $150,000 will need to provide documentation that shows gross receipts declined by 25% or more in a 2020 Calendar Quarter compared to the same Calendar Quarter in 2019.
- Customers applying for a loan less than $150,000 may certify eligibility without documentation at time of origination. These borrowers will need to provide documentation that shows gross receipts declined by 25% or more in a 2020 Calendar Quarter compared to the same Calendar Quarter in 2019 when applying for 2nd Draw Forgiveness.
When is the deadline to apply for a 2nd Draw PPP Loan?
- March 31, 2021
- An example of the 2nd Draw application (known as 2483-SD) may be found on the SBA website.
Have Questions? Request a phone call or send an email to covidrelief@highplainsbank.com
1st Draw PPP Loans
Who is eligible for a 1st Draw PPP Loan?
- Eligible borrowers who DID NOT receive a PPP Loan in 2020
- PPP Borrowers who received a 1st Draw PPP Loan and have NOT received forgiveness who are eligible for a larger maximum loan amount based on revised guidelines.
- Borrowers also must meet these qualifications:
- 500 employees or fewer
- Entity was operational prior to February 15, 2020. Businesses opened after February 15, 2020, are not eligible.
What is the maximum loan amount for a 1st Draw PPP Loan?
- Up to 2.5 times average monthly payroll costs based on either 2019 or 2020 calendar year or 1-year period before the PPP loan is made.
- Farmers and ranchers who were in business prior to February 15, 2020 are eligible for 2019 or 2020 Schedule F gross income (capped at $100,000) divided by 12 and multiplied by 2.5 PLUS employee payroll calculations (2.5 x average monthly payroll costs)
- Sole proprietors, independent contractors, and eligible self-employed persons will qualify for loan based on 2019 or 2020 IRS Schedule C or Form 1065.
- Maximum loan is $2 million
How may 1st Draw PPP Loan proceeds be used?
- Payroll costs - at least 60% must be used for this purpose to qualify for full forgiveness.
- Rent and/or lease payments
- Business interest expense
- Utilities
- Covered worker protection and facility modification expenditures to comply with COVID-19 health and safety guidelines
- Expenditures to suppliers that are essential at time of purchase to sustain operations
- Covered operating expenses such as accounting, computing and software needs
What documentation is needed for 1st Draw PPP Loans?
- Customers who apply for a 1st Draw PPP Loan will need to provide Payroll Cost Documentation for either 2019 or 2020, or the 12 months preceding application for the loan.
When is the deadline to apply for a 1st Draw PPP Loan?
- March 31, 2021
- An example of the 1st Draw application (known as 2483) may be found on the SBA website.
Do you think you qualify for a 1st Draw PPP Loan or a revised 1st Draw PPP Loan?
Paycheck Protection Loan Forgiveness
- High Plains Bank will email customers, who have not yet applied for forgiveness, to invite you to complete a forgiveness application.
- Loans of $150,000 or less will be allowed to file a simplified application. We will email all eligible customers when the new application is available.
- Loans greater than $150,000 will require documentation to support expenditures. You will be able to upload these documents using the High Plains Bank forgiveness portal.
- EIDL Advances will be forgiven. If you have already received PPP Forgiveness and currently have an EIDL balance, this will be forgiven. High Plains Bank will notify you when your PPP Loan is “paid in full.”
- There is not a deadline to apply for forgiveness. You may apply any time after you use your funds.
Have Questions? Request a phone call or send an email to forgiveness@highplainsbank.com
