Information for Small Businesses That Have Been Affected
Please note: due to the Paycheck Protection Program's expected demand, we will only accept applications from current American Momentum Bank business clients.
The Coronavirus Aid Relief and Economic Security (CARES) Act of 2020 provided one of the largest stimulus aid packages to individuals and businesses in the nation's history. The CARES Act included the Paycheck Protection Program (PPP), a $525 billion business loan program that offered relief measures to small businesses, primarily to keep employees on payroll and cover other stipulated business expenses.
On Sunday, December 27, 2020, President Trump signed the COVID-19 Relief bill into law, providing for a new round of PPP loans in 2021. On Tuesday, January 19, 2021, American Momentum Bank began accepting applications for First Draw and Second Draw PPP borrowers.
First Draw Loans
First Draw Loans are for borrowers that did not previously receive a PPP loan and can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
If you are planning to submit a First Draw Borrower Application, you can prepare for the application process by reading the Program Overview and gathering the First Draw List of Required PPP Application Documentation.
Second Draw Loans
The PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
If you are planning to submit a Second Draw Borrower Application, you can prepare for the application process by reading the Program Overview and gathering the Second Draw List of Required PPP Application Documentation.
Please email your application and supporting documentation to your local American Momentum Bank commercial lending officer or local banking center manager. We will work diligently to get your application underwritten and approved as quickly as possible.
PPP Loan Forgiveness
Over the Paycheck Protection Program's length, American Momentum Bank has approved over 1,505 applications representing $268.6 million of PPP loans. Many of our clients have concluded their covered period forgiveness terms and are in the original program's forgiveness request phase
An email was sent to qualifying applicants on 8-10-20 containing each applicant's unique username and application portal link. Following initial registration, applicants may re-access the application portal here.
Our team has sponsored a series of webinars to provide you with additional information about the PPP Forgiveness Phase and to answer any questions you may have regarding the program. To view past recordings of the webinars, please click on the links below:
- Overview of the PPP Application Portal - 8-10-20
- How to Submit a PPP Loan Forgiveness Request - 7-13-20
- Overview of PPP Loan Forgiveness - 6-26-20
We continue to gather information and will regularly update this webpage with new content.
On March 3, 2021, the SBA posted the following new documents:
- EA IFR #4, Revisions to Loan Amount Calculation and Eligibility
- SBA Form 2483-C, Borrower Application Form for Schedule C Filers Using Gross Income (effective March 3, 2021)
- SBA Form 2483-SD-C, Second Draw Borrower Application Form for Schedule C Filers Using Gross Income (effective March 3, 2021)
- SBA Form 2483, Borrower Application Form (revised March 3, 2021)
- SBA Form 2484-SD, Second Draw Borrower Application Form (revised March 3, 2021)
- SBA Form 2484, Lender’s Application – Paycheck Protection Program Loan Guaranty (revised March 3, 2021)
- SBA Form 2484-SD, Paycheck Protection Program Lender’s Application – Second Draw Loan Guaranty (revised March 3, 2021)
In addition to allowing an individual who files an IRS Form 1040 Schedule C to use gross income to calculate his/her maximum PPP loan amount, the IFR also removes two eligibility restrictions. Effective immediately the IFR removes the eligibility restriction that prevented businesses with owners who have non-financial fraud felony convictions within the last year and the restriction that prevented businesses with owners who are delinquent on or in default on their Federal student loans from obtaining PPP loans. The new and revised borrower and lender PPP application forms reflect the March 3, 2021 guidance.
Previous updates, including our helpful guides, can be found below:
- Answers to Your PPP Forgiveness Questions - 4.5.21
- SBA Procedural Notice: Adjustment to Number of Months of Section 1112 Payments in the 7(a), 504 and Microloan Programs Due to Insufficiency of Funds
- How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide – by Business Type
- Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts. Including What Documentation to Provide the SBA
- Press Release: SBA/Treasury Announce PPP Re-Opening, Issue New Guidance
- EA IFR # 1: Business Loan Program Temporary Changes, Paycheck Protection Program as Amended by Economic Aid Act
- EA IFR # 2: Business Loan Program Temporary Changes, Paycheck Protection Program Second Draw Loans
- SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns
- PPP Forgiveness Request Process
- PPP Forgiveness Documentation Checklist
Please note that we cannot provide counsel concerning the forgiveness provisions of the PPP. It is recommended that you consult with your attorney and/or CPA as more guidance is made available by the Small Business Administration (SBA). You may also visit the website for the U.S. Department of Treasury and the SBA for more information.
Thank you for continuing to choose us as your financial partner, and please, contact your American Momentum Bank commercial lending officer or local banking center manager if you have any questions.