BankFinancial is taking applications for a new round of the Paycheck Protection Program. | Adobe Stock
BankFinancial is taking applications for a new round of the Paycheck Protection Program. | Adobe Stock
The Chicago Southland Chamber of Commerce announced chamber member BankFinancial is taking applications for Paycheck Protection Program loans up to $500,000.
The U.S. Small Business Administration (SBA) updated provisions for Paycheck Protection Program (PPP) loans to include more companies for eligibility and potentially allow some businesses to qualify for a second PPP loan.
The SBA reopened PPP for First Draw Loans the week of Jan. 11. First Draw PPP Loans can be used to cover operating costs, including payroll, mortgage interest, rent, utilities, worker protection costs related to COVID-19, certain supplier costs and other related operating expenses.
Businesses cannot have more than 500 employees to be eligible for a loan. Nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors can apply. Businesses with more than 500 employees in specific industries may still be eligible as long as they meet SBA’s alternative size standard for those particular industries.
Businesses that previously received a First Draw PPP Loan and have or will use the full amount of the loan before awarding the Second Draw may be eligible for a second loan through the Second Draw Program.
Applicants must have 300 or fewer employees and provide documentation of revenue loss of at least 25% in any quarter of 2020 versus 2019 to be eligible for a Second Draw Loan. Borrowers are eligible to apply for a loan covering 2.5 times their average monthly payroll costs. Hospitality and food-service industries are eligible for loans up to 3.5 times their average monthly payroll.
Borrowers of either First Draw or Second Draw loans are eligible for 100% forgiveness if during the eight- to 24-week covered period following loan award, they maintain employee count and compensation levels, loan proceeds are spent on payroll costs and other eligible expenses, and at least 60% of the loan proceeds are spent on payroll costs.
A business account with BankFinancial is required before closing the PPP loan.
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