blue texture fading into to digital rendering for a folder with files
An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. – Second Draw Loan Information
The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
• Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.
You can apply through Citizens Bank of West Virginia by completing the application and submitting the appropriate documentation linked below. The completed application and supporting documentation may be submitted by using the SBA PPP DOCUMENT UPLOAD below or emailed to PPP@citizenswv.com.
PPP Second Draw Borrower Application Form (revised 02-17-21)
PPP First Draw Borrower Application Form (revised 02-17-21)
Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients.
The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:
There may be exceptions to these limits for restaurants and other hospitality businesses.
Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:
Please read carefully page 4 of the application on completing the form.
The borrower must submit to the lender the following information to obtain a Second Draw PPP Loan (unless previously submitted in connection with the First Draw PPP Loan). This information is required even for applicants of $150,000 or less that elect to leave the “Reduction in Gross Receipts of at Least 25%” section of the Borrower Application Form blank.
If you have already submitted the Second Draw Borrower Application without the above required supporting documentation please provide this additional information at your earliest possible convenience.
Borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.
Funds covering qualified costs may be forgiven if at least 75% of the loan is used toward qualifying payroll costs. Any funds used for non-covered expenses WILL NOT be forgiven.
The SBA recently released the PPP Loan Forgiveness Application, which includes further information and resources to help make sure you qualify. In a nutshell, forgiveness is based on maintaining, or quickly rehiring, employees and salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
The loan forgiveness form and instructions feature several measures to reduce compliance burdens and simplify the forgiveness application process, including:
As more details continue to become available, we will update the information here.
The SBA recently published a new EZ version (Form 3508EZ) of the forgiveness application requiring less documentation and fewer calculations than previously required.
Form 3508EZ applies to borrowers who meet any one of these three criteria:
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
If you have already submitted a forgiveness application with the original application you do not need to submit a new application on the revised form.
Within a reasonable time following the end of the optional 8 or 24 week time period from your PPP loan origination date.
The loan number, date, amount and other information are on the Promissory Note document signed at the PPP loan closing, and in most cases emailed to you after the loan closing. If needed, you may request a copy of your loan documents by emailing PPP@citizenswv.com.
Citizens Bank will provide you will your SBA PPP number. Please email PPP@citizenswv.com to obtain your loan number.
Completed PPP Forgiveness Loan applications and supporting documentations are submitted to the SBA for processing within sixty days. Applicants will be notified via email regarding the approval status once we have received a response from the SBA.
Please direct your questions to PPP@citizenswv.com and we will be happy to assist you with your application process.