Paycheck Protection Program (PPP) Draw 1 and 2 (Update as of January 10, 2021)
**Please read this message in its entirety!**
EagleBank has prepared its Online PPP Portal to accept applications from eligible self-employed individuals and businesses who were customers of the bank as of June 30, 2020, that may wish to apply for PPP loans reauthorized under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (the "Act").
The Small Business Administration (SBA) issued interim final rules on January 6th to carry out the Act which was signed into law by the President on December 27, 2020. The SBA released two forms late on January 8, 2021:
- Form 2483 – PPP Borrower Application Form (First Draw Form)
- Form 2484-SD – PPP Second Draw Borrower Application Form
The SBA also announced that they will open their portal for lenders to submit applications in a phased approach. Only community financial institutions will be able to submit applications to the SBA on Monday, January 11, 2021. The SBA will roll out the opening to other lenders over the next several days. They have not stated how or when this roll out will occur.
The interim final rules did provide the following important information:
- Eligible self-employed individuals and businesses with 500 or fewer employees who did not previously receive a PPP loan may apply for a PPP loan (subject to all other applicable application requirements and program rules).
- Previous recipients of PPP loans will be eligible for a second loan if, among other requirements, they:
- have used the full amount of their first PPP loan for eligible purposes
- have 300 or fewer employees (second-time PPP borrowers with 300 or fewer employees will generally be eligible to borrow an amount equal to 2.5 times their average monthly payroll.)
- have sustained a 25% revenue loss in any quarter of 2020 relative to the same quarter of 2019.
- Businesses from the food service and accommodation industries, classified under the North American Industry Classification System (NAICS) beginning with the number 72, may be eligible to borrow an amount equal to 3.5 times their average monthly payroll.
- Loans are limited to a maximum amount of $2,000,000.00
What you need to do if you wish to apply for a PPP loan under the Act once the program is opened:
- If you previously obtained a PPP loan that was processed by EagleBank, the individual(s) who executed the loan paperwork should have received an e-mail regarding the changes to the Online Portal log in. If you did not receive that email, please reach out to your Relationship Manager. The Online Portal log in screen changes and the Draw 2 application will be available on Monday, January 11, 2021 for you to prefill. These will not be submitted until the SBA opens their portal to EagleBank.
- If EagleBank did not previously process a PPP loan for you and you were a customer of EagleBank as of June 30, 2020, please send an e-mail to FirstTimePPPLoan@eaglebankcorp.com. Please indicate in your e-mail if you have previously received a PPP loan and from what institution. We will respond to your e-mail requesting the information needed to set you or your organization up in our Online PPP Portal.
Reminder: EagleBank is only accepting PPP applications from customers who had an active deposit or loan relationship with EagleBank as of June 30, 2020.
By accepting your credit application for review under the Paycheck Protection Program (“PPP”), EagleBank, its parents, subsidiaries, and affiliates, is not representing that your loan request will be approved or that sufficient money will be available to fund the loan, in whole or in part, owing, among other things, to the extreme demand for limited funds allocated by Congress in a time of national emergency. EagleBank, its parents, subsidiaries, and affiliates, expressly disclaims all liability concerning, relating to, and/or arising out of the loan review process, its credit decisions, and any inability or failure to disburse any amount of the requested loan funds.
Update for PPP Borrowers (Update as of January 4, 2021)
Here are the latest updates as we await new guidance from the Small Business Administration (SBA).
Below are some important dates which you should be aware of. You will note that while there are specific dates regarding matters contained within the legislation, there is no date yet as to when the next round of PPP Originations will begin.
- The SBA has 10 days to establish procedures and issue guidance on the next round of PPP Originations (due by Jan. 6 from the SBA).
- The SBA has 24 days to make updates to the current PPP Forgiveness process and associated forms (due by Jan. 20 from the SBA).
- New PPP funding will be available until March 31, 2021 or until program funding is exhausted (whichever is first to occur). Again, no date has been established as to when new PPP Originations will begin.
If you have a PPP loan with a balance of $150,000 or less and would like to wait for the updated Forgiveness process and forms, below are the steps to take:
- If you have not started your Forgiveness application, you can wait until the new forms are published by the SBA. We will let you know when they are available in our Online PPP Portal.
- If you have started your Forgiveness application, but have not submitted it to the Bank for review, you can simply wait until the new forms are published by the SBA. We will let you know how to switch to the new forms when those forms are available in our Online PPP Portal.
- If you have submitted your Forgiveness application, but have not received an email to eSign your Forgiveness application, you can send an email to PPPForgiveness@eaglebankcorp.com and request that we push your Forgiveness application back to you.
Update on Next Round of PPP Funding (Update as of December 28, 2020)
We are monitoring the regulations and guidance regarding the next round of PPP funding. As of 12/28, the legislation has been signed. We are now waiting for the SBA to finalize the guidance on how this will be implemented. Until the SBA releases this guidance, we are not in a position to take calls or address inquiries regarding the program. We plan to continue to participate in the program at this point, but will only be able to accommodate customers of EagleBank as of June 30, 2020. If you are not an EagleBank customer or do not already have existing accounts, we recommend you explore options outside of EagleBank to put your business in the best possible position for receiving funds. We appreciate your patience.