Our Executive Vice President and Chief Lending Officer, Kerry Hoops, explains the SBA's Paycheck Protection Program. More information can be found in the links below.
Listen to Jeremy Doetch (VP of Ag and Commercial Lending) and Tayler Burns (Ag and Commercial Loan Officer) answer common questions about the Paycheck Protection Program. #farmingbanker podcast
First Draw - Paycheck Protection Program 1.0 (PPP 1.0)
The SBA is reopening the deadline for the first round of PPP funds that were dispersed in 2020. If you did not apply or did not qualify for the first Round of PPP funding, you may now qualify due to changes in the determination of the PPP maximum loan amount. Please view the PPP First Draw Overview and the PPP First Draw Application Form for additional details, and contact one of our loan officers listed below to apply.
If you have not completed your application for forgiveness of your PPP 1.0 loan dispersed in 2020, please contact your German American State Bank loan officer. Contact information is listed below.
Second Draw - Paycheck Protection Program 2.0 (PPP 2.0)
We are happy to provide you with the information we currently have on the second round of the Paycheck Protection Program (PPP 2.0). Please understand, we are still learning more details about this program as more information is provided by the SBA.
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, utilities and certain other eligible costs.
Loan payments will be deferred for six months. No collateral or personal guarantees are required. Neither the government nor German American State Bank will charge a small businesses enrolled in this program any fees.
Borrowers will be expected to spend at least 60% of the funds on payroll over a covered period of 8 to 24 weeks to receive full forgiveness. The other 40% can be used on certain other eligible costs. More information is available in the links below.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Who is Eligible for PPP 2.0?
- Sole proprietors, independent contractors, self-employed persons (including farmers), non-profit, religious organizations and others.
- Businesses with 300 or less employees.
- Businesses who show a 25% reduction in gross receipt (revenue) in the first, second or third quarter in 2020 compared to the same quarter in 2019.
- Businesses that were granted funds for PPP 1.0 will have to have used all of those funds for qualified purposes prior to disbursement of PPP 2.0 funds.
- More information is listed within the links below and on the Small Business Administration’s website.
When can I apply for PPP 2.0?
We will be able to submit applications January 13, 2021 through March 31, 2021. The SBA is blocking off the first 48 hours of submitting applications for community banks only, therefore we highly encourage you to apply soon!
Application and contact information is listed below.
How do I apply for PPP 2.0?
Please review the below information and submit the application and required documentation to your current loan officer. If you do not have a loan officer, please contact one of our lenders listed below. Please note we will need a copy of valid identification for each applicant and legal documentation for each entity in order to accept your application.
- Paycheck Protection Program (PPP) Second Draw Overview
- Paycheck Protection Program (PPP) Second Draw Application
- New Customer Information Sheet (Individual) - Must be completed and submitted with your application.
- New Customer Information Sheet (Business) - Must be completed and submitted with your application.
Need Assistance? Contact one of our commercial loan officers listed below or email us at [email protected]
* The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of Treasury. Borrowers can also visit www.sba.gov or www.coronavirus.gov for more information.