SBA Paycheck Protection Program (PPP) application
Touchstone bank is now accepting SBA Paycheck Protection Program (PPP) applications through March 31, 2021.
The program is open to customers and non-customers with a business headquartered in Virginia or North Carolina.
To begin, please read the information below to learn what is included in the PPP and Forgiveness loans.
Following your review go here to begin the application process.: (place link to portal here)
If you have any questions about this program, contact our Customer Care Center at (888) 478-4434, Monday – Friday, 8:30am – 5:00pm. Or call your Touchstone commercial lender.
What is in the Covid Relief Act of 2020 for PPP and Forgiveness?
Changes affecting existing PPP loans
1. Additional eligible expenses for loan forgiveness include:
- Covered operations expenditures
- Covered property damage costs
- Covered supplier costs
- Covered worker protection expenditures
2. Changes to tax implications of PPP funds
- Confirmation that forgiveness is non-taxable
- Expenses are deductible
- No increase in basis shall be denied
3. Simplified application process for loans under $2 million
- Loans up to $150,000 will require completion of a one-page online or paper form with borrower certifications
- Loans $150,000 to $2 million will have simplified documentation requirements
4. Audit plan for borrowers who, together with their affiliates, obtained $2 million or more
- Policies and procedures for conducting audits and reviews
- Metrics used to determine which loans will be audited
Changes exclusive to the second round of PPP loans
5. Additional PPP loan funds available
- $267.5 billion in PPP loan funds available
- Additional $13.5 billion for Economic Injury Disaster Loan funds
6. Eligible businesses looking to apply for more funding
- Size of business is now limited to 300 employees (down from 500 in round one)
- Business must have experienced gross receipts decline by at least 25% for any quarter in 2020 compared to that same quarter in 2019
- Use or will use the full amount of any previous PPP loan
- Public companies excluded
7. Calculating the maximum loan amount
- Two and a half months’ worth of the average payroll for the last twelve months through date of application or 2019 – 3.5x for NAICS Code 72 – Accommodation and Food Service
- Loan cannot exceed $2 million
- There will be limitations for businesses with multiple locations (aggregated total not to exceed $2 million)
- Loans for affiliated borrowers cannot exceed $10 million
8. Set aside for small entities
- $25 billion of the total allotment is earmarked for businesses with 10 employees or less as of February 15, 2020
9. Increase in PPP loan round one amounts
- Requests can be made for an increase in round one amount if calculating incorrectly due to updated regulations
10. Inclusion of 501(c)(6) organizations who were previously ineligible in round one
- Organizations must have 150 employees or less
- Less than 10% of gross receipts may come from lobbying activities
- Lobbying activities cannot comprise more than 10% of total activities of the organization
11. Benefits to certain SBA 7a Loans
Key Dates and Terms
- PPP will last till March 31, 2021.
- SBA has 10 days after the bill’s enactment to establish rules and regulations (January 6, 2020).
- The borrower may select a covered period ending at the borrower’s choosing between 8 and 24 weeks after origination.
- The SBA must establish a one-page simplified forgiveness form within 24 days of enactment (January 20, 2020).
- Borrowers are required to retain relevant records related to employment for 4 years and other records for 3 years.
- The SBA must establish a plan detailing their review and forgiveness audit plan within 45 days after enactment of the bill (February 10, 2021).
- A business that was not in operation on February 15, 2020, shall not be eligible for a PPP loan.
- Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019, through February 15, 2020.
- Farmers and ranchers in operation as of February 15, 2020, may utilize their gross income from 2019 when calculating their maximum loan amount.
- The SBA Administrator must issue guidance addressing barriers to access to capital for underserved communities no later than 10 days after enactment of the bill (January 6, 2020).
- The SBA Administrator must release guidance to lenders within 17 days of enactment of the bill that allows borrowers who returned all or part of their PPP loan to reapply for the maximum amount applicable so long as they have not received forgiveness (January 13, 2021).