Home / News and Resources / #31: SBA and Treasury Department Announces Opening of PPP Application Process for Banks Under $1 Billion in Assets

#31: SBA and Treasury Department Announces Opening of PPP Application Process for Banks Under $1 Billion in Assets

On 1-13-21 the SBA and Treasury Department announced that banks under $1 billion in assets would be able to begin submitting PPP Second Draw loan applications, as well as PPP First Draw loan applications for borrowers who did not access the program in 2020.

Citizens Bank is ready to begin accepting applications for both PPP loan programs. Procedures for borrowers who have not previously taken a PPP First Draw will be published shortly and posted to our website.

Please contact the commercial lender who helped you with your first PPP loan to discuss your options for the Second Draw.  If you did not take a First Draw and would like to check your eligibility, please call us at 317-831-0110.

The rules as amended remain in place for all First Draw loans, which remain available in our PPP Information area of our website.

Eligibility requirements and necessary documentation for a Second Draw PPP loan:

  • Borrower must have 300 or fewer employees including affiliates.
  • Borrower must demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
  • Gross receipts include all revenue from any source including sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. Items such as subcontractor costs, reimbursements for purchases, investment income, and employee-based costs (such as payroll taxes) are included in gross receipts.  Excluded are capital gains or losses, forgiven PPP loan funds, sales or other tax collected for and remitted to a taxing authority, and amounts collected for another entity or individual.
  • Gross receipts of a borrower with affiliates will be the sum of the gross receipts of both the borrower and the gross receipts of each affiliate.
  • Documentation sufficient to establish the reduction in revenue must be submitted with the application, and may include relevant tax forms, or if relevant tax forms are not available, quarterly CPA or borrower prepared financial statements.
  • For most borrowers, maximum loan amount is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. If using 2020 payroll, new payroll documentation will need to be provided.
  • For borrowers in the Accommodation and Food Services sector (NAICS code 72) the maximum loan amount for is 3.5x average monthly 2019 or 2020 payroll up to $2 million.
  • Maximum loan amount for Farmers without employees who file Schedule F is 2.5x the monthly gross income that is not more than $100,000 on an annual basis. If borrower has employees, employee payroll costs in 2019 or 2020 may be included, not exceeding $100,000 for any employee or owner.
  • Borrowers must have used the full amount of their First Draw PPP loan only on eligible expenses prior to disbursement of the Second Draw. First Draw PPP does not have to be forgiven to apply for a Second Draw PPP loan.

Following are the items you will be required to submit to Citizens Bank for a Second Draw PPP loan:

  • Maximum Loan Amount Calculator - Excel Version | PDF Version
  • PPP Second Draw Borrower Application
  • Beneficial Ownership Statement
  • Verification that you experienced a decline in Gross Receipts of 25% in a quarter of 2020 over the same quarter in 2019. This can be accomplished by submitting relevant tax forms, quarterly income statements, CPA provided reports or borrower prepared financial statements.
  • A legible copy of an unexpired Driver's License or BMV photo ID for all owners of 25% or more of the business.

These documents can be sent to Citizens Bank securely and applicants can select the employee to whom you wish to send it to.

As always, we stand ready to answer your questions about the PPP using the best available information.

Citizens Bank recommends however that you consult your outside advisors and experts in all matters relating to the PPP and loan forgiveness.  We will work to provide you timely and accurate information, but the burden for obtaining forgiveness rests on the borrower. All information provided in this format or any other communication regarding the program is believed to be accurate, but no guarantee is or can be made by any Citizens Bank representative.

Please submit your questions to pppquestions@citizens-banking.com.  Include the name of your business in your e-mail.  We will endeavor to answer in a timely way with the best information currently available.

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