We hope that you and your family are safe and doing well during these challenging times.

As you may be aware Congress voted to pass the legislation last evening designed to provide economic relief for communities, small businesses, families, and individuals affected by the COVID-19 pandemic as well as public health measures.

Considering the bill still needs the President’s signature it is unlikely that the Treasury and SBA will have processes and procedures in place by the end of the year. However Golden Valley Bank will be accepting PPP applications once SBA issues final guidance.

Golden Valley Bank will continue to monitor the situation closely and provide updates as information becomes available. Visit our website to stay up-to-date on everything we know about about PPP and the forgiveness process at this time.

Please contact your Golden Valley Bank representative if you have any questions.

Features detailed within the legislation are as follows:

Reforms to Current Paycheck Protection Program

  • EIDL Advance Fix:

    • Repeal of the EIDL Advance deduction from the CARES Act. We do not know if there will be a claw-back process for those who have already received forgiveness.

  • Simplified Forgiveness for Smaller Loans:
    • For PPP loans of $150,000 or less, the borrower submits to the lender a one-page attestation of compliance with program requirements. The inclusion of demographic information is discretionary. The revised document is pending SBA’s submission to lending institutions.
  • Expenses are Tax Deductible:
    • Provides that business expense paid with forgiven PPP loan proceeds may be deducted from taxable income.

PPP Second Draw Loans

Authorizes $325 billion for PPP, EIDL and other small business assistance.

  • Eligible Borrowers:
    • Fewer than 300 employees
    • Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019
    • Stock not traded on a national exchange
    • 501(c)(6) are eligible, but any entity for which lobbying comprises more than 15% of receipts or activities is not eligible
  • Maximum Loan:
    • 2.5 times average monthly payroll or $2 million, whichever is less. Businesses in the restaurant and hospitality industries are eligible for loans for 3.5 times average monthly payroll
  • Interest Rate and Term:
    • 1%, 5 years
  • Eligible Expenses:
    • The bill expands eligible expenses to include PPE expense, costs associated with outdoor dining, and supplier costs, but payroll expenses must still comprise no less than 60 percent of eligible expenses.

Support for Agriculture

$26 billion provided for agriculture: $13 billion for farmers and ranchers and $13 billion for nutrition assistance programs (includes 15% SNAP increase for six months)


SBA PPP Resources

Visit our website to stay up-to-date on everything we know about about PPP and the forgiveness process at this time.

Golden Valley Bank

Written by Golden Valley Bank