Paycheck Protection Program (PPP)

We know these are very challenging times and we want to make sure getting a PPP loan isn’t something you have to stress about.

In round one of the Paycheck Protection Program, First Bank of the Lake helped more than 4,000 small businesses gain access to over $500 million of relief, and we’ve been working diligently to ensure that our portal makes it easy for you to apply and secure your place in line for the next round of PPP.

    Here’s what you’ll need to be eligible for a PPP loan in the new round:

    • Demonstrate at least a 25% reduction in gross receipts (to be defined by SBA) in any quarter of 2020 relative to the same quarter in 2019.
    • For simplicity, businesses can now use annual tax returns for 2019 and 2020 to substantiate the 25% revenue reduction.
    • Businesses can also compare any quarter in 2019 with the comparable quarter in 2020 which can be substantiated with quarterly financial statements
    • Employ fewer than 300 employees

    Important Notice:

    First Bank of the Lake is no longer accepting new PPP loan applications. This is to ensure we have sufficient time to process existing applications prior to the close of the program.

    We’re here to answer your questions.

    Who is eligible to receive a PPP Loan?

    Who is eligible to receive a PPP Loan?

    Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients.


    To be eligible for a first-draw PPP loan:

    • Your business has less than 500 full-time, part-time, or seasonal employees.
    • Your business was operational before February 15, 2020 and remains operational.

    To be eligible for a second-draw PPP loan:

    • Your business has less than 300 full-time, part-time, or seasonal  employees; if you have multiple locations, you may not have more than 300 employees per location.
    • You are able to demonstrate a revenue reduction of at least 25% in the first, second, or third quarter of 2020 (when compared with the same quarter in 2019).
    • You have used or will use the full amount of the first-draw PPP.
    • Your business was operational before February 15, 2020 and remains operational.

    Businesses eligible for first- and second-draw PPP loans include:

    • Sole proprietors
    • Independent contractors
    • Self-employed individuals
    • Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations)
    • Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
    • Faith-based organizations that have less than 150 employees
    • Housing cooperatives that employ less than 300 people

    What has changed with round 2 of PPP?

    Here’s PPP under the Consolidated Appropriations Act, 2021 at-a-glance:

    • $284 billion has been allocated to PPP (including $138 billion of unspent loans from the first round that were reinvested) and the program has been extended to March 31, 2021
    • Second-draw loans are available for businesses with under 300 employees
    • Businesses eligible for PPP loans has been expanded
    • Loan limitations have been expanded for certain businesses
    • Forgiveness for loans under $150K have a new, simplified one-page application
      • While expenses eligible for forgiveness still require a 60/40 split of payroll costs/other eligible expenses, group health insurance benefits are now included in payroll costs (and these entail life insurance, disability benefits, vision, and dental insurance)
    • Eligible expenses for forgiveness have been expanded (for first-draw loans that have not yet been forgiven and for second-draw loans)
    • Borrowers are allowed to choose a covered period that is any period of time between eight and 24 weeks
    • PPP funding includes dedicated set-asides for community lenders (CDFIs and MDIs) and business that operate in low-income areas
    • A clarification has been made indicating that interest rates on PPP loans are non-compounding and non-adjustable 
    • A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible

    What are the PPP loan maximums and limitations?

    First-draw PPP loan limitations:

    The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:

    • 2.5 times the average monthly payroll costs and healthcare costs
    • $10 million

    There may be exceptions to these limits for restaurants and other hospitality businesses.

    Second-draw PPP loan limitations:

    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:

    • 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
    • 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS). (This is a list of hospitality and entertainment businesses like restaurants, hotels, and casinos; click the link to get the full list.)
    • $2 million

    I wasn’t able to get a first-round PPP loan. Should I try for one in the second round?

    Yes, as long as you are eligible and can adhere to the terms of the loan. With the creation of the new bill, Congress has set aside allocations for community lenders and institutions that can help smaller businesses, businesses owned by POC, and those who operate in lower-income areas access capital. 

    A portion of funding is being directed to Community Development Financial Institutions (CDFIs) and Minority Depository Institution (MDIs). These are community lenders who have committed to expanding economic opportunity for underserved people. Not only are portions of the PPP allocated for these lenders, but also outside of PPP funds; $12 billion is being routed to CDFIs and MDIs. This means that even if the community lenders in your area aren’t supporting PPP, they may be offering other loans with federal funds under the Consolidated Appropriations Act, 2021.

    I returned part or all of my PPP loan. Can I apply for another PPP loan?

    Yes. Within 17 days of the enactment of this bill, the SBA is required to release guidance to lenders on allowing borrowers who have returned loans to access PPP capital. 

    Why do people love First Bank of the Lake?

    Here’s what some of our customers have to say about our PPP team.

    When I got the email that the First Bank of the Lake approved my loan and was set to be funded, I wanted to personally let you know how grateful I am and how this is going to help. 

    I suppose it took something like this to realize how important it is to be connected with banks like yours. Banks who care about their customers, who care about their customers’ businesses and can appreciate the struggles of small businesses in times like these. Thank you all again for your hard work and help.

    — A PPP Loan Customer

    [This loan] is a LIFESAVER for our organization and I thank FBOL for processing my application in a professional manner and, especially being able to help us, as our own home bank did nothing for small businesses.

    I can’t wait to change not only our bank, but my own personal accounts as well.

    — A PPP Loan Customer

    I wanted to THANK YOU from the bottom of my heart! Your kindness and willingness to work with us is a remarkable compliment to you on what a special person you are. As you know, we got approved last night, and my small business here in Annapolis has the funds to survive.

    — A PPP Loan Customer

    Four simple words, but they are at the core of everything we do.

    They are the difference that sets us apart.