COVID-19 Loan Programs

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.


Here is what we know so far, with the Emergency Coronavirus Relief Act of 2020 now signed in to law:

Creation of a Second Draw PPP Program

  • Small businesses with 300 or fewer employees that have sustained a 25 percent (or more) revenue loss in any quarter of 2020, compared to same quarter 2019, are eligible to apply for a second draw PPP loan.
  • The maximum second draw PPP loan will be the lesser of $2 million or 2.5x average monthly payroll like with the initial, first draw PPP loans (3.5x if your business is in NAICS Code 72).
  • The law expands forgivable expenses (beyond the original eligibility) to include supplier costs (such as accounting and IT expenses) and investments in software, facility modifications, and personal protective equipment.
  • For second draw PPP loan applicants seeking up to $150,000, there will be a simple certification submission attesting to your qualification based on quarterly revenue reductions, number of employees, and so forth, thus expediting these submissions when borrowers work with an experienced lender.
  • Existing Highland Bank customers who would like more information, or are interested in applying should contact their banker.

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.).  When this new Forgiveness Application is released we will post it on our website.
  • 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) Documents:

Second Draw PPP Documents:

First Draw PPP Documents: