PPP- Loan Application
Texas Regional Bank is your source for accessing the CARE Act – Paycheck Protection Program (PPP). We are here for you and will help you every step of the way. We’ll get through this. Here is the Small Business Administration (SBA) application to start the process. Once we have completed all requests for current customers, we will accept applications from non-customers. Please note this legislation, including guidelines and requirements, is still in process and therefore subject to change. As we receive additional information we will post it here.
Once your application is complete call 800-580-6536 and ask to speak to your local banker.
Here is more information from the Independent Bankers Association of Texas regarding the PPP program:
The Treasury Department released additional information related to the Paycheck Protection Program (PPP) approved under the CARES Act. Below is a summary of the most important updates included in this information. There are still unanswered questions but some clarification is provided in this round of information, and we will continue to push information out to you as soon as it becomes available. Overview of the Program (Click Here)
| 1. A business, including a qualifying nonprofit organization, is eligible for PPP loans if it
(a) meets the applicable North American Industry Classification System (NAICS) Code-based size standard or other applicable 7(a) loan size standard, both alone and together with its affiliates; or
(b) has an employee headcount that is lower than the greater of
More information on the NAICS-Code-based size standards can be found here. Businesses that fall within NAICS Code 72, which applies to accommodations and food services, are also eligible if they employ no more than 500 people per physical location.
Sole proprietorships, independent contractors, and self-employed individuals are also eligible.
2. Business was in operation on February 15, 2020 and either had employees for whom you paid payroll taxes or paid independent contractors.
3. Individual who operates under a sole proprietorship, or as independent contractor, or eligible self-employed individual and you were in operation on February 15, 2020.
|Ineligible Borrowers||1. Businesses engaged in any illegal activity
2. Household employers
3. Business where any owner of 20% or more is incarcerated, on probation, under indictment, criminal information, arraignment or other means by which formal criminal charges are brought in any jurisdiction or has been convicted of a felony within last 5 years.
4. This business, or any business owned or controlled by borrower or any of business owners of 20% or more has a federal loan that is currently delinquent or has defaulted on a loan in last 7 years where the government had a loss.
5. Businesses otherwise deemed not eligible as identified in SBA’s Standard Operating Procedures (SOP) 50 10, Subpart B, Chapter 2, except for non-profits authorized under the CARES Act. SOP 50 10 can be found here.
|Maximum Number of Loans||1 per business|
|Maximum Loan Amount||Lesser of $10 Million or 2.5 times the average monthly salary over the last 12 months|
|Calculation of Maximum Loan Amount||2.5 times the average monthly payroll costs of last 12 months
Less any salary compensation or amounts paid to independent contractor or sole proprietor in
excess of $100,000
|Qualified Payroll Costs||Salary, wages, commissions, or similar compensation, cash tips or equivalent.
Payment for vacation, parental, family, medical and sick leave; allowances for dismissal or
Calculations vary slightly for seasonal businesses and businesses that were not in operation
Independent contractors can apply for a PPP loan, so they do not count for purposes of a
|Forgivable Amount||Up to the full principal amount of the loan plus any accrued interest; only 25% may be for nonpayroll expenses.|
|Permissible purpose of proceeds and forgiveness calculation||Qualified payroll costs (75% must be used for payroll costs)
Costs related to group health care benefits during periods of paid sick, medical, or family leave insurance premiums
Interest payments on any other debt obligations that were incurred before February 15, 2020
Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020. If you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan. If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan.
The amount forgiven will be reduced based on failure to maintain the average number of full-time equivalent employees versus the period from either February 15, 2019 through June 30, 2019, or January 1, 2020 through February 29, 2020, as selected by the borrower. The amount forgiven is also reduced to the extent that compensation for any individual making less than $100,000 per year is reduced by more than 25 percent measured against the most recent full quarter.
|Required borrower application documentation||Documentation to establish eligibility and validating the number of full-time equivalent employees on payroll as well as the dollar amount of payroll costs.
|Required borrower forgiveness documentation||Documentation of qualified payroll costs paid and current number of full-time equivalent employees
Documentation of mortgage interest or covered rent payments paid
Documentation of covered utilities paid
|Required Certifications by borrower||Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099-MISC.
Current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.
The funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; I understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold me legally liable.
Not more than 25 percent of loan proceeds may be used for non-payroll costs.
During the period beginning on February 15, 2020 and ending on December 31, 2020, the applicant has not and will not receive another loan under this program.
Certification that the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects.
Acknowledgement of understanding that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.
Acknowledgement that the lender will confirm the eligible loan amount using tax documents I have submitted.
Affirmation that tax documents are identical to those submitted to the Internal Revenue Service.
Acknowledgement that the Lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.
|Result of misuse of funds by borrower||Borrower will be expected to repay any funds misused and subject to additional liability such as charges for fraud. If a shareholder, member or partner used PPP funds for unauthorized purposes, SBA will have recourse against the individual.|
|SBA Guaranty amount||100% of the loan amount|
|Deferral Period||6 months but interest will accrue during this period|
|Loan Term||2 years|
|Personal Liability Requirements||None ; no guarantees|
|Other waived SBA 7(a) requirements||Prepayment penalties, guaranty fees and the annual fee applicable to other 7(a) loans|
|Signature Requirements||E-signatures and consents can be utilized|