We know you have a lot of questions. Your existing bank is the best place for you to start. But here is what we know now*:

Updated 3/30/2021 at 3:00 p.m. 

On March 30,2021, President Biden officially signed the Paycheck Protection Program (PPP) Extension Act extending the PPP application deadline through May 31, 2021. In response, we have reopened our PPP Application Portal.
 

Howard Bank PPP Application Portal
Not compatible with Internet Explorer. Please use Google Chrome

Key Updates​:

Below are a few highlights about the expansion of the next round of PPP loans:
  • Eligibility is expanded to include 501(c)(5) labor organizations, 501(c)(7) social and recreation clubs, and 501(c)(8) fraternal benefit societies
  • Provides greater flexibility for seasonal employees
  • New guidance that impacts schedule C tax filers by using a new calculation method. 
 

First-Draw PPP Details       Second-Draw PPP Details      PPP Forgiveness Details 

First-Draw PPP 

Eligibility:**

Some of the qualifications are as follows:
  • Are you a  business, a certain type of non-profit organization, housing cooperative, veterans’ organization, tribal business, self-employed individual, sole proprietor, independent contractor, or small agricultural co-operatives?
  • Were you in operation on February 15, 2020?
  • Do you employ no more than 500 employees?
  • Have you not previously received a PPP Loan from any financial institution?
Businesses that are not eligible to apply include:
  • Entities listed in 13 CFR 120.110  (note that non-profits and religious organizations are eligible)
  • Entities that have permanently closed
  • Entities involved in political and lobbying activities, as well as think tank entities, public policy or political strategy advocacy businesses
  • Registrants under the Foreign Agents Registration Act
  • Entities that receive a grant under the Shuttered Venue Operator Grant program
  • Publicly traded companies
**Additional eligibility and program requirements may apply, please visit the Small Business Administration for more details. 

Max Loan Amount & Term:

  • 2.5x your average monthly payroll up to $10 million ($20 million for corporate group gap)
  • 5-year term at 1.00% fixed-interest rate*** 
***The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Loan amounts will accrue interest at a fixed rate of 1.00% and have a 5-year maturity. Refer to SBA Rules for more information on other applicable terms, conditions and limitations.

How To Prepare:

Below are a few steps you can take to prepare for the First-Draw application:
  • Gather Ownership information to include organizational documents and Tax ID number
  • Gather documentation that shows the business was in operation as of February 15, 2020
  • Gather copies of 2019 and 2020 year-to-date payroll reports
  • Review the new SBA First-Draw Application Form (not compatible with Internet Explorer)
For Businesses with Employees:
  • 2019 IRS Quarterly 940, 941 or 944 payroll tax reports 
  • Payroll statement or similar documentation to demonstrate operations on 02/15/2020
  • For S or C Corps: Equivalent payroll processor records or IRS Wage and Tax Statements), along with the filed business tax return (IRS Form 1120 or IRS 1120-S)
  • Summary of payroll expenses for individual employees with salaries over $100,000
  • K-1 (IRS 1065) for Partnership Self Employed employment income
  • General Ledger Reports or statements to assist with Health Care and Retirement benefits
  • State Quarterly Wage Reporting Forms
For Independent Contractors and Sole Proprietorships (if applicable):
  • Form 1099 -MISC (independent contractors only)
  • Form 1040 Schedule C or F for 2019 
  • Payroll tax filings
  • Payroll statement or similar documentation to demonstrate operations on 02/15/2020
  • Bank Statements to demonstrate payroll disbursements
  • General Ledger Reports or statements to assist with Health Care and Retirement benefits
  • State Quarterly Wage Reporting Forms
This document should be used to understand the calculation of monthly payroll but please refer to the updated loan amount parameters.  

Second-Draw PPP

Eligibility:**

Some of the qualifications are as follows:
  • Are you a business, a certain type of non-profit organization, housing cooperative, veterans’ organization, tribal business, self-employed individual, sole proprietor, independent contractor, or small agricultural co-operative?
  • Were you in operation on February 15, 2020?
  • Can you demonstrate a decrease in revenue of at least 25% in any quarter in 2020 to the same quarter in 2019? Or, if in operations for all of 2019, you may use annual gross receipts.  This applies to all loan amounts.
  • Do you employ no more than 300 employees? Unless you are a business categorized under NAICS 72, 511110, or 5151,  then 300 per location. 
  • Have you previously received a PPP loan from any financial institution, and have or will you use all of the funds received from the First Draw PPP loan before the distribution of the Second PPP loan?
Businesses that are not eligible to apply include:
  • Entities listed in 13 CFR 120.110  (note that non-profits and religious organizations are eligible)
  • Entities that have permanently closed
  • Entities involved in political and lobbying activities, as well as think tank entities, public policy or political strategy advocacy businesses
  • Entities affiliated with people or entities in the People’s Republic of China
  • Registrants under the Foreign Agents Registration Act
  • Publicly traded companies
**Additional eligibility and program requirements may apply, please visit the Small Business Administration for more details

Max Loan Amount & Term:

  • 2.5x your average monthly payroll up to $2 million ($4 million for corporate group cap)
  • 3.5x your average monthly payroll for restaurants, hotels and other businesses categorized under the NAICS code 72, up to $2 million
  • 5-year term at 1.00% fixed-interest rate***

***The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Loan amounts will accrue interest at a fixed rate of 1.00% and have a 5-year maturity. Refer to SBA Rules for more information on other applicable terms, conditions and limitations.

How To Prepare:

All applicants for a Second-Draw PPP loan will need to resubmit all necessary information even if you have previously provided it for your First-Draw PPP loan. Below is a reminder of what items you will need to provide: 
For Businesses with Employees:
  • 2019 and/or 2020 IRS Quarterly 940, 941 or 944 payroll tax reports
  • Payroll statement or similar documentation to demonstrate operations on 02/15/2020
  • For S or C Corps: Equivalent payroll processor records or IRS Wage and Tax Statements), along with the filed business tax return (IRS Form 1120 or IRS 1120-S)
  • Summary of payroll expenses for individual employees with salaries over $100,000
  • K-1 (IRS 1065) for Partnership Self Employed employment income
  • General Ledger Reports or statements to assist with Health Care and Retirement benefits
  • State Quarterly Wage Reporting Forms
For Independent Contractors and Sole Proprietorships (if applicable):
  • Form 1099 -MISC (independent contractors only)
  • Form 1040 Schedule C or F for 2019 and/or 2020 to demonstrate a reduction in revenue
  • Payroll tax filings
  • Payroll statement or similar documentation to demonstrate operations on 02/15/2020
  • Bank Statements to demonstrate payroll disbursements
  • General Ledger Reports or statements to assist with Health Care and Retirement benefits
  • State Quarterly Wage Reporting Forms
This document should be used to understand the calculation of monthly payroll but please refer to the updated loan amount parameters.  
 
If you have specific questions about the program, please visit the Small Business Administration or U.S Treasury Department.
*Please note that the information above is subject to change based on the SBA’s final rules and guidance
 

PPP Loan Forgiveness

Howard Bank is now accepting forgiveness applications.  As a client who received a Paycheck Protection Program (PPP) loan through Howard Bank, we will accept Forgiveness Applications using an online portal that provides step-by-step instructions for making your application for Forgiveness.  Each Borrower will receive an email invitation to the Howard Bank Forgiveness Portal, including a unique link to your PPP information, to securely complete your application and upload supporting documentation. We are waiting on revised rules that are intended to streamline forgiveness for borrowers that have loan amounts of $150,000 or less.  We will let clients know when the new streamlined application is available. 

We encourage you to review the most up to date information on documentation requirements and legislative changes on the SBA and Treasury websites. We are committed to keeping you informed and look forward to assisting you throughout the process.