SBA Paycheck Protection Program

Black Hills Community Bank continues to process the 2nd Draw PPP loans as well as 1st draw PPP loans for those who have not previously applied.  Please go to the Treas.gov or SBA.gov websites for program rules and the most current application forms.  We heavily encourage you to talk with your tax or other financial professional to determine if you qualify before applying. The following are some specific qualifications for the 2nd draw PPP program as well as some information about our process to help you get prepared:

Qualifications include:

  • Applicant has taken out a PPP loan in the first round and has used all the funds prior to submitting for the 2nd draw PPP. 
  • Applicant had a decrease >25% in gross receipts.
    • Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the same quarter of 2019. Alternatively, Applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019; Applicants choosing to use annual gross receipts must enter “Annual” in the 2020 Quarter and Reference Quarter fields and, as required documentation, must submit copies of annual tax forms substantiating the annual gross receipts reduction.
    • For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.
    • For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019.
    • For entities not in business during 2019 but in operation on February 15, 2020, Applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020.
  • Businesses <300 Employees (or less than 500 employees if they have more than 1 location)
  • Those businesses with NAICS code starting in 72 get 3.5x’s the monthly average payroll instead of the normal 2.5x (mainly restaurants, bars, hotels, campgrounds).
  • At time of application, the bank will be collecting documentation supporting the 25% reduction in gross receipts as well as payroll documentation used to calculate the loan amount. 
    • If the bank originated your 1st PPP loan, the payroll documentation already provided will suffice unless you will be utilizing 2020 payroll to calculate your loan amount. 
    • If your loan amount is less than $150,000, then payroll documentation is not required at time of application.  It must be made available by the applicant if requested by the SBA for audit purposes.

All applications and required documentation are to be submitted to ppp@bhcbank.com. We will update our website as more information is provided including the date the SBA opens the application process for community banks.

Thank you for your business and we hope this additional funding support will benefit you and your business through this pandemic.  

Sincerely,

Jack Lynass
President/CEO


Resources:

Paycheck Protection Program Borrower Application Form