COVID-19 Loan Programs


 Waukesha State Bank helping businesses grow

As our business customers work through these challenging times, we want to ensure that you are aware of some important and potentially business-saving resources.



December 2020 COVID-19 Relief Package

On December 27, 2020, the President signed the new $900 billion coronavirus relief package. The package includes several provisions that benefit businesses, including:

  • $284 billion in new funds for the Paycheck Protection Program, including a Second Draw option for prior PPP borrowers.
  • Certain 501(c)6s, destination marketing organizations (DMOs), housing cooperatives, newspapers, broadcasters, and radio stations are now eligible for PPP funding.
  • PPP list of eligible expenses expanded to include covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance; covered supplier costs; and covered worker protection expenditures (PPE).
  • A simplified PPP forgiveness process allowing PPP loans of $150,000 or less to be forgiven after the borrower completes a one-page attestation.
  • Repeal of a CARES Act provision that required PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount.
  • Enhancements of existing SBA loan programs, including the 7(a), 504 and microloan programs.
  • Relief from the taxability of PPP loans. Normal tax deductions may be claimed for business expenses paid with PPP money.

 

PPP General Program Information

On January 8, 2021, the U.S. Small Business Administration formally announced the re-opening of the Paycheck Protection Program. We will begin processing applications for First and Second Draw loans on Tuesday, January 19, 2021.

The PPP is an SBA loan primarily for payroll, rent and utilities. Within this program, there are no collateral requirements or personal guarantees required. The PPP loan is eligible for forgiveness if it is used for at least 60% payroll during the 8- to 24-week Covered Period after disbursement.

With this new round of funding, borrowers are responsible for providing more information on the applications for both First and Second Draw loans, including:
Please note, per the SBA, on this round of the PPP, for both First Draw and Second Draw loans, there will be a time lapse between when the lender submits the PPP application information and when the SBA provides the SBA loan number to the lender. This change is to allow for the SBA to complete additional compliance checks and may result in a delay of funding.

Second Draw PPP Applications

The eligibility requirements for a Second Draw PPP loan are as follows:

  1. The borrower must spend the full amount of the First Draw PPP loan before receiving the Second Draw loan.
  2. The borrower must demonstrate a 25% or more reduction in gross receipts in any quarter of 2020, or for the full calendar year, compared to the same 2019 quarter or year.
  3. The borrower must employ no more than 300 employees per physical location.
  4. The amount of each Second Draw PPP loan is subject to an overall cap of $2 million.
Second Draw PPP loans can be up to 2.5 times the average monthly payroll costs during the 1-year period before the loan or during the 2019 calendar year. Borrowers in the hospitality or food services industry (NAICS code beginning with “72”) are eligible for a loan of up to 3.5 times average monthly payroll costs. Like First Draw loans, Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week Covered Period following loan disbursement at least 60% of the proceeds are spent on payroll costs.


At this time, we will need at least the following items to process the application for your business:
Existing WSB PPP Borrowers:
  • No additional information is required if you are using the same payroll information from the First Draw to calculate the Second Draw loan amount.
  • If you are using different payroll information to calculate loan amount, then you need to provide your 2020 payroll journal, quarterly 941, W-2s, etc. to support the loan amount calculation.
  • If the loan amount is greater than $150,000, documentation must be supplied to establish that your business experienced a revenue reduction of 25% or greater in 2020 relative to 2019.
  • If the loan is less than or equal to $150,000, documentation must be supplied to establish the revenue reduction, if available, otherwise documentation is deferred to time of forgiveness application.
  • Detailed breakdown of how you arrived at your loan request amount.
If this is your Second Draw PPP loan, but your first PPP loan with WSB, then we need the following:
  • 2019 or 2020 payroll, by employee, as reported to the IRS with supporting documentation (for example: payroll journal from payroll provider, quarterly form 941, W-2s, etc.)
  • If the loan amount is greater than $150,000, documentation must be supplied to establish that your business experienced a revenue reduction of 25% or greater in 2020 relative to 2019.
  • If the loan is less than or equal to $150,000, documentation must be supplied to establish the revenue reduction, if available, otherwise documentation is deferred to time of forgiveness application.
  • Detailed breakdown of how you arrived at your loan request amount.
Once you have filled out the application, you may submit that, and your additional documentation, to Waukesha State Bank via:
  1. Email: WSBCARES@waukeshabank.com
  2. Fax: (262) 574-4104
  3. In Person: Drop off at any Waukesha State Bank location.
Once we receive your application, we will contact you with the next steps and to collect any additional documentation.

First Draw PPP Applications

At this time, we will need at least the following items to process the application for your business:
  1. 2019 Payroll – Total payroll for the full year 2019, by employee, as reported to the IRS; supporting documentation for this total should be included (for example: Forms 940, 941, W-2s, etc.). Compensation of individual employees in excess of $100,000 should be excluded from your total.
  2. Payroll Report – As of February 15, 2020 or closest date after that date, by employee.
  3. Other information required by the application is available at the US Treasury website.
  4. Detailed breakdown of how you arrived at your loan request amount.
Once you have filled out the application, you may submit that, and your additional documentation, to Waukesha State Bank via:
  1. Email: WSBCARES@waukeshabank.com
  2. Fax: (262) 574-4104
  3. In Person: Drop off at any Waukesha State Bank location.
Once we receive your application, we will contact you with the next steps and to collect any additional documentation.

We will continue to provide additional updates as they become available. Please check back.

Paycheck Protection Program (PPP) Loan Forgiveness Application


PPP loan forgiveness is based on employers maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

On June 5, 2020, the Paycheck Protection Program Flexibility Act was enacted, which modified certain provisions relating to forgiveness of PPP loans. On Tuesday, June 16, 2020, the Small Business Administration (SBA) published a revised PPP Loan Forgiveness Application (Form 3508) to implement changes made by the PPP Flexibility Act. The SBA also released a new three-page "EZ" version of the forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:

  • Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees; OR
  • Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%.

Both applications give borrowers the option of using the original eight-week Covered Period (if your loan was made before June 5, 2020) or an extended 24-week Covered Period.

If you received a PPP loan, please familiarize yourself with the Loan Forgiveness Application and begin collecting the documents and records required by the SBA. And as always, please feel free to reach out to our commercial bankers as a resource at (262) 549-8551.
 




SBA Streamlines PPP Forgiveness for Loans of $50,000 and Under

On October 8, 2020, the Small Business Administration released a streamlined loan forgiveness application for Paycheck Protection Program loans totaling $50,000 or less. 

The two-page forgiveness application, Form 3508S, includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain the documentation supporting their certifications for six years.

If your business borrowed under $50,000 through the PPP program, please standby for further communication from your lender.