As one of the top SBA Preferred Lenders in Minnesota, we are committed to providing our customers with accurate and timely information to help your business succeed. Information regarding financial support for businesses affected by COVID-19 is changing rapidly, but you can count on us to provide up-to-date and accurate information on resources that can help you. Please check our website regularly for updated information.
CORONAVIRUS RELIEF ACT OF 2020
Loan Forgiveness Updates
- The law provides full tax deductibility of business expenses on forgiven PPP loans (on both first and second draw PPP loans).
- The loan forgiveness process for first draw and second draw PPP loans less than $150,000 will be simplified to a one-page certification (you will need to provide the number of employees retained, amount spent on payroll, total loan amount, etc.).
- The law repeals the CARES Act provision requiring borrowers to deduct the EIDL (Economic Injury Disaster Loans) advance from their PPP loan forgiveness amount.
Enhancement of Existing SBA Loan Programs
- The law provides $75 billion for SBA 7(a) loans to be made (typically for working capital, business acquisition, business debt refinance, CRE, equipment, [and other] purposes) with SBA fees waived, on these new loans, through the end of this SBA fiscal year 9/30/21 (on SBA 504 loans as well).
Cares Act Payments
- The law extends the Section 1112 payments of the CARES Act for three months for most businesses (with up to $9,000/month payments); for the hardest hit businesses (those belonging to the 2- and 3-digit NAICS categories with the most severe job losses) for eight months; and for six months for new SBA 7(a) or 504 loans made between February 1st, 2021 and the end of this fiscal year (in addition to the previous mentioned fee waivers). These begin in February.
- Cares Act Payment Flow Chart
We’re committed to helping you navigate through this process from beginning to end! If you have any questions, please contact your Banker today.
Paycheck Protection Program (PPP)
PPP Loan Forgiveness:
- Frequently Asked Questions (FAQ’s) on PPP Loan Forgiveness
- PPP Loan Forgiveness Application & Instructions for Loans $150,000 and Under
- Checklist – For Paycheck Protection Program (PPP) Loan Forgiveness
Second Draw PPP Documents:
- Frequently Asked Questions (FAQ’s) – Second Draw PPP Loans
- Paycheck Protection Program Second Draw Information
- How to Calculate Maximum Loan Amounts for Second Draw PPP Loans