Update as of January 11, 2021

SBA Reopens Paycheck Protection Program 

On January 8, 2021, the Small Business Administration announced that the Paycheck Protection Program (PPP) will reopen for First and Second Draw Loans the week of January 11, 2021.   SBA is permitting certain special purpose community development financial institutions to accept applications beginning Monday, January 11th.  All other SBA approved lenders like us, will receive access shortly thereafter.  Updates will be provided here as they become available. 
Borrowers can apply for a First and Second Draw Loans until March 31, 2021.  

 

First Draw Loans

 

First Draw PPP Loans are available to eligible businesses who did not receive a PPP loan in 2020.  Loan proceeds must be used to help fund payroll costs, including benefits, and can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

For most borrowers, the maximum loan amount of a First Draw Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $10 million. 


First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
 
  • Employee and compensation levels are maintained;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.

Download and review the PPP Borrower Application form (includes instructions) here.  Shore United Bank customers interested in a First Draw PPP loan should contact their account officer or email us at ApplyPPP1@shoreunitedbank.com  for instructions on submitting the application and supporting documents via our online portal when it becomes available. 

Visit treasury.gov for more information and details, including the comprehensive program rules.



Second Draw Loans

The Paycheck Protection Program (PPP) is now allowing certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
 
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (click HERE for NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Download and review the PPP Second Draw Borrower Application Form (includes instructions) here.  Second Draw Loans are available to borrowers who obtained a PPP loan from Shore United Bank in 2020.  Applications for Second Draw Loans shall be submitted via our online portal.  Contact your lender or email us at ApplyPPP2@shoreunitedbank.com  to receive access to the origination portal when it becomes available.. 

Visit treasury.gov for more information and details, including the comprehensive program rules.