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Round 2 of PPP Loans

This page updated on Jan. 14, 2021 at 4:15 pm

As an update to our notice last week, the SBA has begun accepting applications from only a small limited number of financial service providers such as CFI’s, MDI’s and Micro Lenders.

  • Bank of the San Juan, like the majority of the financials institutions in our markets, are not currently authorized to submit PPP Applications for processing.
  • Our estimated date to begin accepting applications will be on January 19,  2021, pending final SBA notifications. 

Also, we are aware that a small number of institutions have begun to accept the current application posted to the SBA website.

We suggest that you wait to fill out any application until you have received the packet from us at the bank – because there are pending changes and most likely will continue to be through the weekend.  We continue to ask for your patience over the next several days as we finish preparing to facilitate this program and encourage you to read the below items to begin preparing for your application.

  • Have I used the full amount of my Round 1 PPP Loan for authorized uses?
  • Do I have 300 or fewer employees? (full-time, part-time, and seasonal)
  • Was my company in business on February 15, 2020, and remains so today?
  • Am I able to prove a 25% reduction in gross quarterly sales for comparable quarters in 2019/2020 or an annual reduction in gross annual sales between 2019/2020?

If you answer "No" to any of these questions you will not meet the eligibility standards for Round 2 per the SBA Interim Final Rulings

While we are waiting on some final items from SBA, the current documents that will be needed along with your application (which will be provided to you) are as follows:

  • Proof of 25% reduction in revenues.  Acceptable forms for verification of revenue loss per SBA Interim Final Ruling are quarterly or annual tax filings, internal quarterly/annual financial statements, or bank statements with acceptable detail.
  • If you are using 2020 payroll numbers for your new loan, we will need your annual payroll summary and 941s/940s, 2020 Schedule C or F (if applicable), or other applicable and approved payroll statements.
  • These items will all be attached to your application via DocuSign and returned to your lender.

Bank of the San Juans is busy working with borrowers to complete the initial SBA PPP Loan forgiveness.

  • As a reminder you will need to show proof of spent funds on Payroll, Utilities, Rent, and Mortgage Interest with a minimum of 60% of the use being for payroll. 
  • All borrowers are also eligible for the 24 week (168 days) spend period from the time they received the money in their accounts vs the original 8-week approval to allow more time to utilize these funds.
  • If you have not received your application to apply for forgiveness please contact your originating loan officer to request this to get started on this process.

On December 27, 2020 the new federal Economic Relief Bill was signed into law and is expected to be rolled out as a whole over the coming weeks.  A portion of this bill is the forgiveness of Economic Injury Disaster Loan (EILD) Advances received from SBA up to $10,000 that were initially not forgiven and taken out of your SBA PPP Loan Forgiveness.

These loans that are remaining with a balance due and payments starting have been automatically extended by six months for a payment start date to allow SBA time to process these and have the money to the bank to pay these off.  You will be receiving a letter with more detail in the coming weeks from Bank of the San Juans.

If you have already started making payments or have paid off  your EIDL advance at the time forgiveness was issued the bank will provide this credit back to your business account at the time we receive the funds from the SBA but not prior.

We have not been given a timeframe for these payments to be issued to the banks and borrower but will update this page once we have more information.  Please contact your lender with any questions. 

During times like these it is not uncommon for fraudsters to take advantage of a vulnerable situation. If you are contacted by anyone other than your lender to provide them loan information or account information for loan forgiveness please contact your lender and the bank right away.