On April 23, 2020, Congress approved an additional $310 billion in funding for the Paycheck Protection Program (PPP). We know how critical this program is to small businesses facing the impact of COVID-19. We are committed to processing as many PPP loan requests as possible in order to put these funds to work in our communities.
We are currently processing PPP applications that were previously submitted. Should you have questions concerning the PPP loan or application process, please contact one of our Business Bankers.
While many things have changed in a short period of time, our loyal commitment to all our customers has not changed, and we will continue to work with those facing financial hardship, providing a variety of solutions that make the most sense for meeting their particular needs.
Q: So, what is the PPP?
A: The Paycheck Protection Plan (PPP) is a 100 percent federally guaranteed loan program to help small businesses and other applicable entities (see below) maintain their payroll during the COVID-19 crisis.
Q: Who is eligible to apply?
A: Businesses and entities that were in operation on February 15, 2020.
- All businesses (including nonprofits, veterans organizations, Tribal businesses, sole proprietors, independent contractors, and self-employed individuals) with fewer than 500 employees.
- OR, applicable businesses with an NAICS code beginning in ‘72’ (as of February 15, 2020) and fewer than 500 employees per location.
*Note: the term employee refers to ANY employee that is full-time, part-time, or any other basis.
Q: What can I use the loan for?
A: Eligible uses include:
- Payroll costs (see below for more on what constitutes ‘payroll’).
- Payments of interest on mortgage obligations (this does NOT include prepayment of or payment of principal on mortgage obligations).
- Rent, including rent under lease agreements – must have been in force before February 15, 2020.
- Utilities – must have been in force from February 15, 2020.
- Interest on other debt obligations that were incurred before February 15, 2020.
Q: What is a ‘payroll cost’?
A: Costs associated with,
- Salary, wages, commissions, tips or equivalent – does not include costs associated with employees earning more than $100,000 on an annualized basis.
- Employee Benefits, including, •Paid time off for vacation, parental, family, medical or sick leave
- Allowance for separation or dismissal
- Associated costs for the provisions of group health care benefits, including insurance premiums
- Retirement benefits.
- State and local taxes assessed by employee compensation.
For sole proprietor or independent contractors: wages, commissions, income, or net earnings from self-employment, capped at $100,000 annualized income per employee.
Q: Are PPP loans eligible for forgiveness?
A: Yes; however, forgiveness will be reduced if you,
- Use funds for anything other than authorized uses, as stated above.
- Reduce salaries or wages by more than 25 percent for employees who made less than $100,000 in 2019. *
- Reduce or do not re-hire staff reduced between February 15, 2020 and April 26, 2020. *
*Loan applicants have until June 30, 2020 to restore salaries/wages and staff headcount.
Q: How will forgiveness be granted?
A: You will need to submit a request for forgiveness to Poca Valley Bank. Forgiveness amount will be determined by documentation demonstrating costs incurred during the eligible loan period, known as 8-weeks after origination. This request must be submitted no later than 2 weeks after the eligible period is over. Poca Valley Bank must deliver forgiveness decision within 60 days.
Q: What is the loan term, interest rate, and applicable fees?
A: The maximum maturity for any balance after the forgiveness decision is made, will be two (2) years from the date on which the borrower applies for forgiveness. All loan payments will be deferred for six (6) months, during which time interest will accrue.
- 1 percent (1%) fixed interest rate.
- There are no fees.
- There is no expectation of collateral.
- There is no prepayment penalty.