On December 27, 2020, President Trump signed the COVID relief legislation into law, which includes a new round of funding through the Paycheck Protection Program (PPP).

JFG will participate in the new PPP process providing you a trusted resource to work with to receive your loan.

On Wednesday, January 6th, the SBA released a partial update with revised guidelines and terms.

On Tuesday, January 19th, the JFG SBA PPP Application Portal will open and the SBA will begin accepting applications.

  • Second PPP loans will be available to businesses who have used the full amount of their first PPP loan.
  • Recipient must have fewer than 300 employees.
  • Needs Test: Recipient must demonstrate at least a 25% reduction in gross receipts (sales) in any quarter in 2020 when compared against the same calendar quarter as 2019.
  • The legislation caps second loans at $2 million.
  • All applications will be handled through the JFG SBA PPP portal, which submits the necessary paperwork to the SBA for review. There will be no paper applications accepted.
  • We will continue to provide email updates as further details become available, and when our PPP portal is open for accepting applications.

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES

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Frequently Asked Questions and Guidance on Applying for PPP 2021

  • We are using the same online process for applications that we used for JFG SBA PPP Forgiveness. (See #3 below)
  • Business clients will interact directly with the portal to apply and submit supporting documents required by the SBA.
  • DocuSign will be used for needed signatures inside of the portal and by JFG Loan Services for funding.
  • JFG PPP Application Support E-mail Box will be available for any questions.

In order to receive a PPP 2021 loan, eligible businesses must:

  • Employ not more than 300 employees.
  • Have used or will use the full amount of their first PPP loan.
  • If a 2020 PPP disbursed loan is in review with the SBA, the borrower is not eligible for another PPP loan until the SBA has removed the loan from review. The borrower may apply, but the SBA will not issue a new PPP 2021 loan number until the review of the 2020 PPP loan is completed. The 2021 PPP application will be put into a HOLD status until the review of the 2020 PPP is complete.
  • Borrowers must demonstrate at least a 25 percent reduction in gross receipts in the first, second, third or fourth quarter of 2020 relative to the same 2019 calendar quarter. Sole proprietorships/Schedule C tax filers will compare 2019 and 2020 Schedule C revenue. 
    • For PPP loans of $150,001 and above: The borrower will supply the information at the time of application for the revenue test.
    • For PPP loans of $150,000 or less: The borrower will not have to supply information at time of application for the revenue test, but will certify on an SBA form during the application process that the revenue reduction of 25% is true. At time of forgiveness application, the client will be required to provide the documents to support the reduction.
  • Corporations, partnerships, sole proprietors, religious organizations and independent contractors will utilize our online portal to complete the application process. 
  • 501(c)3 & 501(c)6 non-profits are eligible if: The organization does not receive more than 15 percent of receipts from lobbying and/or the lobbying activities do not comprise more than 15 percent of activities.
  • Businesses that received an SBA PPP loan in 2020 and used it properly can apply for a “second draw” loan up to $2,000,000 provided they meet all eligibility requirements.
  • Businesses that have never taken an SBA PPP loan can apply for up to $10,000,000 provided they meet all eligibility requirements.  In general, businesses may apply for a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year.  Clients in industries assigned to NAICS code 72 (Accommodation and Food Services) may receive loans of up to 3.5X average monthly payroll costs.
  • SBA Fees are waived to encourage participation.
  • An interest rate of 1% will be charged on any portion of PPP loan that is not forgiven.  Maturity of the loan is 5 years.
  • The payment deferment is for 16 months and begins at the point of funding. This will allow time after the end of the 24-week Covered Period for the borrower to apply for forgiveness.
  • There are NO prepayment penalties. Borrowers are free to repay principal and/or interest without additional charges.
  • Any unforgiven balances by the SBA will be responsibility of the borrower to repay before the maturity of the loan. This may include amortization.
  • There are different requirements for documentation depending upon the size of loan.
  • The online portal defines for you the information required for each level of PPP application. The online portal has logic built in to assist you in the application process.
  • Documents are listed below to have ready for the portal (Remember you can sign in and out of the portal at any time, all information is saved):
  • If you are applying for an amount equal to or less than your PPP loan of 2020, we have all your documents. Continue in the portal.
  • While you will not supply a supporting document until the forgiveness process later in 2021, you should make sure you qualify for the loan considering the test of: The client experienced a 25% reduction in gross receipts when comparing a calendar quarter between 2019 and 2020.
  • If you don’t meet the gross receipts reduction test, you should not apply for PPP 2021.
  • Document to show the reduction in revenue of 25% or more when comparing a calendar quarter between 2019 and 2020. This should be in the form of financial statement presentation for 2019 and 2020, that clearly show the reduction.
  • Narrative from the borrower as to how the amount requested was calculated.
  • 941 Payroll Tax Statements for Quarters 1-4, 2020.
  • Document to show the reduction in revenue of 25% or more when comparing a calendar quarter between 2019 and 2020. This should be in the form of financial statement presentation for 2019 and 2020, that clearly show the reduction.
  • C- Corp, Sub Chapter S, Non-profits, Partnerships: 941 Payroll Tax Statements for Quarters 1-4 of 2019 and 2020.
  • Schedule C Sole Proprietorship: Copy of your 2019 Schedule C. If 1099 income, include 1099 MISC
  • Narrative from the borrower as to how the amount requested has been calculated.
  • If you received a PPP loan from another bank lender in 2020:
  • Copy of your 2020 application form for PPP, SBA Form 2483
  • Copy of your 2020 forgiveness form for PPP, SBA Form 3508
  • Corporations: Articles of Incorporation & Articles of Organization (if used)

On January 19, 2021, an e-mail communication to existing PPP clients will be distributed. These clients will see the “Start Application” button appear in their existing PPP online portal that they used for forgiveness.

  • JFG must do some eligibility testing of the client file. This should only take a day or two.
  • After JFG submits the application to the SBA we have been told that there will NOT be an immediate approval like in 2020. The SBA has not designated timeframe for a turn-around time on approvals.
  • Just like PPP loan disbursements made in April – June 2020, DocuSign and funding into a JFG deposit account will be used. JFG will notify you and complete the funding when we have an approval.
  • We expect that the loan forgiveness process that will be used later in 2021 for this round of loans will be like the loan forgiveness process used in 2020.
  • The JFG PPP application online portal may help answer most questions.
  • When you are working inside of the portal, there is a way for you to send questions to our Answer Desk for assistance.
  • However, complex accounting or legal questions will not be answered by JFG. Please consult your Attorney, Accountant or tax preparer.
  • Yes. We will NOT be accepting paper applications.
  • Yes, this will be handled inside of the JFG SBA PPP Application Online Portal.
  • You will be instructed inside the portal and via a DocuSign e-mail when the application is complete and ready for signature.