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Paycheck Protection Program-Second Round




Latest update for Paycheck Protection Program clients

New legislation, signed into law on December 27, 2020 authorizes the Small Business Administration (SBA) to approve Paycheck Protection Program (PPP) loans up to the $284.5 billion in allocated PPP funding.

• According to the legislation, PPP loans will be available to businesses with 500 or fewer employees that have not previously received a PPP loan to help with payroll, rent, utilities, healthcare costs and more

• In addition to providing for new PPP loans for first-time borrowers, the legislation also allows certain existing PPP borrowers to receive a “second draw” PPP loan if they have used all of their first loan (or will have by the time of disbursement of the second loan), have no more than 300 employees and can demonstrate a year-over-year quarterly revenue reduction of at least 25%

• The legislation also expands the list of allowable and forgivable expenses, which apply to existing PPP loans for which a borrower has not yet received forgiveness. Additionally, the legislation provides for a more flexible covered period. For details on eligibility and requirements, please visit the SBA website.

We are awaiting guidance from the SBA on this round of PPP lending and plan to begin receiving new PPP loan applications in the coming weeks. Please check back for updates.


Online Administration

BankSouth will continue to work with our small business customers to make this process as easy and streamlined as possible.  In addition to our online portal made available, our PPP Specialists and Relationship Managers will be available to assist and answer your questions as more information becomes available. .

This results in an extension for small businesses to apply for the remaining PPP funds until August 8, 2020.  BankSouth continues to process PPP loan applications; call a Relationship Manager at your local branch for more information.

Washington, D.C. (July 2, 2020) — Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey released the following statement on congressional passage of legislation to extend the Paycheck Protection Program through Aug. 8.

"As the nation's top small-business lenders and leading Paycheck Protection Program participants, community banks will continue working to meet the needs of their customers and local communities.

"Community banks have been an economic lifeline to local communities during the COVID-19 pandemic, including through their participation in the Paycheck Protection Program. Combined, they account for more than 66 percent of PPP loans and 63 percent of the program's approved dollar amount, according to SBA data.

"While community banks will continue supporting their local economies, we are also advocating additional reforms to include in the next COVID-19 relief bill to support small businesses and jobs in rural, suburban, and urban markets. In addition to a more straightforward approach to PPP loan forgiveness, ICBA and community bankers also encourage Congress to advance capital and accounting relief, liability protection, tax reform, agricultural support, and more.

"ICBA and the nation's community banks will continue working with Congress and the Trump administration to implement policies that will help local communities recover economically from the COVID-19 pandemic."


On June 25, 2020, the SBA updated FAQ information pertaining to the Loan Forgiveness Application package with instructions and continues to update regulations and guidance to help borrowers complete their applications and inform lenders of their responsibilities.

The form and instructions include:

  • Options for borrowers to calculate payroll costs using an "alternative payroll covered period" that aligns with borrowers' regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after borrowers received their PPP loan
  • Step-by-step instructions on how to perform calculations required by the CARES Act to confirm eligibility for loan forgiveness.
  • Statutory exemptions fro loan forgiveness reduction based on rehiring by June 30.
  • Descriptions of documents you need to gather (e.g., payroll records, eligible non-payroll costs like rent, mortgage interest, covered business utility payments, etc.
  • The new exemption for borrower whose good faith, written offers to rehire workers were declined.
When to submit your Loan Forgiveness Application:

  • The Paycheck Protection Program Flexibility Act of 2020, which became law on June 5, 2020, extended the covered period of loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness.  The 24-week period applies to all borrowers, but borrowers that received an SBA loan number before June 5, 2020, have the option to use an eight-week period.¹
  • As of June 25, 2020, the SBA updated its policy regarding the maturity date of a PPP loan.  If a PPP loan received an SBA number on or after June 5, 2020, the loan has a five-year maturity.  If a PPP loan received an SBA loan number before June 5, 2020, the loan has a two-year maturity,, unless the borrower and lender mutually agree to extend the term of the loan to five years. The promissory note for the PPP loan will state the term of the loan.¹
  • BankSouth will notify you in advance of that date that you are eligible to begin the application process. Check back here frequently for additional information regarding electronic submission of your Loan Forgiveness Application.

¹ Source: SBA Frequently Asked Questions for Lenders and Borrowers for the Paycheck Protection Program - Effective June 25, 2020