Paycheck Protection Program (PPP)
An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
On March 27, 2020, the United States Congress passed, and President Trump signed, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help support businesses and families through the ongoing novel coronavirus (COVID-19) pandemic.
In particular, the CARES Act expanded the SBA Section 7(a) loan program, also referred to as the "Paycheck Protection Program" (PPP), which aims to support small businesses. We are encouraging all of our small business borrowers who are impacted by COVID-19 to consider applying for a loan under this new program, which provides some critical benefits, including:
CRITICAL BENEFITS
| Cash to cover select business expenses (such as employee salaries and payroll support, rent or mortgage, utility payments, and insurance premiums) |
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| Six months of deferred loan payments |
| Loan forgiveness (a portion, or possibly all, of your loan may be forgiven) |
KEY POINTS TO KNOW
| WHAT IS THE LENGTH OF A PPP LOAN? | Two (2) Years |
| WHAT IS THE INTEREST RATE ON A PPP LOAN? | 1.00% |
| WHAT IS THE MAXIMUM DOLLAR AMOUNT OF A PPP LOAN? | 2.5X your average total monthly payments for payroll costs of the business during the one-year period before the loan is made (excluding any compensation paid to any single employee in excess of an annual salary of $100,000). Payroll costs include salary, wages, commissions, vacation, parental, family, medical, sick leave, severance, health care benefits and local taxes. |
| CAN I APPLY FOR MORE THAN ONE PPP LOAN? | No. The program does not allow borrowers to receive more than one PPP loan. As a result, we encourage borrowers to apply for the maximum amount eligible. |
| HOW LONG DO I HAVE TO APPLY FOR A PPP LOAN? | The deadline to apply for a PPP loan is June 30, 2020, but funds are awarded on a first-come, first-served basis. |
HOW TO APPLY
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To apply, please fill out the Application Form and submit it back to your relationship manager, and include other required documentation to verify the loan amount.
The documentation may include:
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2019 Business Tax Return or Schedule C
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Accounting Software Payroll Ledger for 2019 or the calculation time period
(We use this to calculate the loan amount if the 2019 is not complete, and to verify the total amount of compensation per employee.)
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| Wyoming Workers' Compensation and Unemployment Records to add to calculation of the loan amount. |
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Most recent tax return if 2019 is not available.
(We use this to verify eligibility.)
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OTHER CONSIDERATIONS
| Please note that we must be able to verify the loan amount based on the documentation you have provided. If you've calculated the loan amount on the application, please document how you arrived at the calculation so that we can reconcile the loan amount. |
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| This program requires verification and documentation. We are at the mercy of your ability to provide us credible information in order to process this application. If we cannot verify the loan amount, your application will be set aside until it is considered complete. |
| Due to the volume expectations we will process complete applications in the order they are received. |
SOURCES OF INFORMATION AND APPLICATION LINK
| Application Form | Fact Sheet | SBA Information on Paycheck Protection Program |
First Northern Bank of Wyoming is committed to helping our customers through this difficult time. We are grateful for your business and hope to make this process as simple as possible.