Paycheck Protection Program (PPP) Information

Paycheck Protection Program Information

Madison County Bank is now accepting applications for the second round of Paycheck Protection Program loans. The Small Business Administration will begin processing applications submitted by Madison County Bank on January 19, 2021.

If you plan to apply, contact your loan officer or local branch as soon as possible to start the application process.

The $900 billion COVID-19 relief package signed into law late last year allocated $284 billion in additional funding for the Paycheck Protection Program. We’ve created this webpage to help you navigate the second round of this program.

Summary of Key Program Details:
This new round of PPP loans is available to both new applicants and those who previously received a PPP loan that meet more stringent eligibility requirements.
       
     First Time PPP Borrowers:
              ♦  Must have fewer than 500 employees (excluding NAICS code 72 businesses).

     Second Time PPP Borrowers:
              ♦ Must have fewer than 300 employees (excluding NAICS code 72 businesses).
              ♦ Must show a decline in revenue of 25% or more during any quarter in 2020 relative to the same quarter inn 2019.
              ♦ Must have used or will use the full amount of their first PPP loan.

• Borrowers can select anywhere between eight and 24 weeks for their Covered Period.

• Loans are now capped at $2M. For those who have already received a PPP loan, the total of the two loans cannot exceed the initial $10M cap.

• NAICS code 72 (Accommodation and Food Service) businesses' loan amounts will be based on 3.5 times average monthly payroll costs.

• 501(c)(6) organizations, that are not lobbying organizations, such as chamber of commerce and trade organizations, are now eligible if they have fewer than 150 employees.

• Expenses paid for with PPP loans will now be considered tax-deductible.

• Allowable covered expenses have been expanded.

• PPP loans under $150,000 will have a one-page forgiveness application.

• Economic Injury Disaster Loan (EIDL) advances will no longer be deducted from PPP forgiveness requests.

• The SBA will be establishing procedures to return EIDL advance amounts already deducted from loan forgiveness.

We encourage you to review the following documents to determine your eligibility and prepare yourself for the application process.

First Time PPP Borrowers:
    Overview of First Draw PPP Loans
    Form 2483 - First Draw Borrower Application

Second Time PPP Borrowers:
    Overview of Second Draw PPP Loans
    Form 2483-SD - Second Draw Borrower Application

Helpful links from the SBA:
    SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns  (Released 1/6/2021)
    Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act  (Released 1/6/2021)
    Interim Final Rule on Second Draw Loans  (Released 1/6/2021)

For more information and updates, visit  Treasury.gov/CARES