Updated January 21, 2021
Update on PPP Loans
The information on this page will continue to be updated. Please check back often for updates.
Florence Bank is now accepting PPP Loan applications. Completed applications will be submitted by Florence Bank to the SBA on your behalf.
In order to be eligible for a PPP loan through Florence Bank, you must have had a Florence Bank account as of January 6, 2021.
- How do I apply for a PPP loan?
- What are the PPP loan eligibility requirements?
- How do I calculate my PPP loan amount?
- Non-Payroll Expense uses for PPP loan proceeds
- What should I know about PPP Loan Forgiveness?
- Frequently Asked Questions
How do I apply for a PPP Loan?
Florence Bank is now accepting applications. Completed applications will be submitted to the SBA by Florence Bank on your behalf.
To apply, you will need the following:
- Proof of entity type (LLC, S-corp, sole proprietor, etc.)
- A Schedule of Ownership (names and percentages) for the business - the ownership percentage must add up to 100%
- Your 2020 or 2019 payroll tax reports (941, 940, or 944) or equivalent payroll processor records, along with evidence of any retirement and health contributions.
- For employees who receive compensation in excess of $100,000, the PPP loan amount will be limited to $100,000 for these employees. Payroll Reports from your Payroll Provider, if available will be useful.
- If you previously received a PPP Loan, now being referred to as a First Draw PPP Loan, you will need the SBA Note Number and Loan Amount from that loan to apply for a Second Draw PPP Loan. These numbers can be found either on your original PPP Loan Note or on your Forgiveness Application, if you’ve already applied for forgiveness.
- For a Second Draw PPP Loan, the business must also show evidence of a reduction in gross revenues of 25% or more in at lease one quarter of 2020 compared to the same period in 2019.
- Your 2019 or 2020 (whichever you used to calculate the loan amount) Form 1040 Schedule C.
- Your 2019 or 2020 (whichever you used to calculate the loan amount) IRS Form 1099-MISC detailing nonemployee compensation received
- You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or before February 15, 2020 or your 2020 tax return if available.
What are the PPP Loan eligibility requirements?
Eligibility for this round of PPP loans has been expanded and now includes:
- Tax-exempt veterans’ organizations and 501(c)(19) organizations
- Tribal businesses described in 31(b)(2)(C) of the Small Business Act
- News organizations (those with North American Industry Classification System (NAICS) codes 511110 or 5151)
- Sole proprietors, independent contractors, and eligible self-employed individuals
- Not-for-profits, including churches and 501(c)(6) membership organizations, such as chambers of commerce, provided they do not have more than 300 employees and do not receive more than 15% of their funds from lobbying Accommodation and food service operations (those with NAICS codes starting with 72) with fewer than 300 employees per physical location
If you have not previously received a PPP loan, the eligibility requirements are:
- The loan request must be $10 million or less
- The business size can be 500 or fewer employees
- Your organization must have been in operation on or before February 15, 2020
If you have previously received a PPP loan, you may apply for another PPP loan, referred to as a Second Draw PPP, if all the following conditions apply:
- The current economic uncertainty makes the PPP loan necessary to support ongoing operations.
- The loan you request is $2 million or less.
- The business has 300 or fewer employees.
- The business used, or will use, the full amount of their first PPP loan on or before the expected date on which the Second Draw PPP Loan is disbursed to you.
- The business must show a reduction in gross revenues of 25% or more in at least one quarter of 2020 compared to the same period in 2019.
Your business is not eligible if:
- The business received or will receive a grant under the Shuttered Venue Operator Grant program
- The business was created in or organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong, or has significant operations in the People’s Republic of China or the Special Administrative Region of Hong Kong owns or holds, directly or indirectly, not less than 20% of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership
- Retains, as a member of the board of directors of the business, a person who is a resident of the People’s Republic of China
How to calculate my PPP Loan amount?
Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020.
Seasonal businesses are categorized as businesses that operate for no more than 7 months or 75% of revenue occurs in 6 months or less.
Please note: Individual contractors do not count as employees for purposes of PPP loans. They have the ability to apply for a PPP loan on their own.
Non-Payroll Expense uses of PPP Loan proceeds:
- Covered worker protection and facility modification expenditures incurred on or after March 15, 2020, including personal protective equipment to comply with COVID-19 federal health and safety guidelines.
- Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations.
- Covered operating costs such as software and cloud computing services and accounting needs.
- Covered property damage costs related to property damaged and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation.
What should I know about PPP Loan forgiveness?
- Borrowers are now able to choose the length of their covered period so long as it is at least eight weeks and is not longer than 24 weeks.
- The new law creates a simplified Forgiveness Application process for both existing PPP loans as well as Second Draw loans of $150,000 or less. However, the simplified Forgiveness Application has not yet been developed by the SBA and may not be available until February 2021. If you have not yet applied for loan forgiveness, you may want to wait.
- Borrowers are required to retain relevant records related to employment for 4 years and other records for 3 years, as the SBA may review and audit your loan.
- EIDL Advances do not reduce Forgiveness and the SBA has indicated that any Borrowers that already received Forgiveness and had their EIDL Advance deducted from such Forgiveness may be able to amend their Forgiveness applications. We expect further guidance to be issued.
If your questions have not been answered on this webpage, you may email them to us at BusinessBanking@FlorenceBank.com or call us at 413-587-4740.
Top-Line Overview of Second Draw PPP Loans (Released 1/8/21)
Interim Final Rule #1 – PPP as Amended by Economic Aid Act (Released 1/6/21)
Interim Final Rule #2 – PPP Second Draw Loans (Released 1/6/21)
Please be alert and diligent. Criminals may attempt to take advantage of PPP programs. If you are contacted directly from anyone claiming to be from the SBA, do not provide any private information and contact us immediately.
PPP Forgiveness First Draw Loan
As a recipient of a Paycheck Protection Loan through Kabbage, you may be wondering what’s next.
- You have 10 months from your covered period (up to 24 weeks) to request forgiveness of your PPP loan. You will be required to make principal and interest payments in the 17th month after disbursement on any amount not yet forgiven.
- Everything will happen from the dashboard. The dashboard is the system you sign in to from KServicing.com.
- KServicing will communicate with you from the dashboard and through email. There is also a resource center available on the KServicing website with everything you need to know about the forgiveness process and the application.
- The forgiveness application will be done online so there is no need to fill out the paper application you may have seen on the SBA’s website. However, we recommend you make yourself familiar with the information you will be asked to submit.
- Be sure to log in to the KServicing dashboard frequently for more information regarding this process and for further instructions.
- You may qualify to have your loan forgiven if the proceeds are used to pay certain eligible costs and a forgiveness application is submitted. You must submit your application within the KServicing dashboard.
- Once your forgiveness application is received, KServicing will have 60 days to decide on loan forgiveness. The SBA will then have up to 90 days to review the forgiveness application.
- The amount of loan forgiveness will be reduced if less than 60% of the funds are spent on qualified payroll costs. Those qualified payroll costs must be made over an 8 to 24-week period from when your loan was disbursed.
- Continue to keep records of the loan proceeds you spend during this period, including receipts, copies of checks, and any other documentation that will help you verify how the funds were used.
- Log in to your KServicing Account
- PPP Resources From the SBA
- Sign-Up For SBA Email Updates
- Tips To Avoid PPP Scams
- KServicing Customer Service Info:
855.747.5135 or email@example.com
Other SBA Government Assistance Programs
Frequently Asked Questions
First Draw PPP Loan?
First Draw PPP Loan through Kabbage?
SBA loan number?
You will then be asked to set up a new username and password.
I’m locked out of my account in the online loan application portal. How can I get unlocked?
I don’t have supporting documents uploaded. However, I did attach/upload documents.
What should I do?
How long does it take for my application to be processed once it’s submitted to the SBA?
Who can I contact if I have more questions?