LAST UPDATED: MARCH 3,2021
Paycheck Protection Program (PPP) Loans
Gateway Bank is pleased to offer eligible current customers access to the Small Business Administration’s second round of Paycheck Protection Program (PPP) loans, a special source of funding for small businesses that have been impacted by the COVID-19 pandemic.
We will continue updating this page as we receive new PPP information and resources.
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PPP loan guidance
About PPP loans and key updates for the second round
The $285-billion, second round of the Paycheck Protection Program is funded by the $900-billion federal stimulus bill, which passed in December 2020 and will run through March 31, 2021.
This round of PPP funding includes several key updates:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs.
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
- The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.
- The PPP provides greater flexibility for seasonal employees.
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount.
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
- EIDL Advances received last spring ($1,000 per employee up to $10,000) are not taxable and do not reduce PPP loan forgiveness.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Application forms and process
1. Determine how much funding to apply for.
The maximum loan amount available is $2 million.
To determine the amount of funding you are eligible to receive, multiply your average monthly payroll for 2019 or 2020 by 2.5. Restaurants are eligible to apply for up to 3.5 times their average monthly payroll for 2019 or 2020.
Keep in mind that you must be able to demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
2. Fill out the required forms, and gather your documentation.
Note: Gateway Bank is no longer accepting applications for the second round of PPP funding. However, we offer several other types of commercial financing. Explore our business loans, or contact us for more information.
Required for all PPP applicants:
- For borrowers applying for their first PPP loan: SBA Form 2483
- For borrowers applying for their second PPP loan: SBA Form 2483-SD
Note: Your First Draw SBA Loan Number is located in your first PPP loan documents. If you’re unable to locate it, please leave that field blank, and we will fill it in for you.
- Profit and loss statements demonstrating the quarters in 2019 and 2020 when a 25%-or-more revenue reduction occurred. (If you applied for the first round of PPP funding and have already shared this information, you will still need to provide it again.)
Required for applicants who are NOT self-employed:
- Form 941, or other tax forms containing similar information.
Note: If you would like to use the same payroll calculations from your first PPP loan with Gateway Bank, you do NOT need to provide this form/documentation again.
- State quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever was used to calculate payroll), as applicable, or equivalent payroll processor records, along with evidence of any retirement and employer group
3. Submit your package to Gateway Bank.
Email your application and documentation to PPPloan@gcbaz.com.
Once we submit your package to the Small Business Administration, it usually takes about one week to receive a response. If your application is approved, you can typically expect to receive access to funds within ten days. We will then provide additional guidance on eligible expenses, loan forgiveness, and more.