PAYROLL PROTECTION PROGRAM (PPP)SBA-Lender-image

Update:  January 16, 2021

Applying for PPP Round 2

Below are three options for applying for Round 2 of the PPP loan relief program.  Please read the information carefully to determine which category best fits your status. Selecting the correct category will provide you with the simplest and easiest application process.

BCT is approved to offer SBA loan products under SBA's Preferred Lender programs.

**IMPORTANT:  READ CAREFULLY

First Time PPP Applicant

The First-Time Applicant process is for PPP applicants who have never applied for a PPP Loan.

BCT has an online PPP Application Portal to simplify the process.  Applicants will submit information and required documentation through the online Portal.  The link below will take you to the Portal.

The following is information required for PPP loan application submission:

For the Loan Application

  1. EIN (Employer Identification Number) Verification
  2. Organizational Documents
    1. Example of documents needed:
      1. By-Laws and Articles of Incorporation
      2. Operating Agreements
      3. Resolutions
  3. Complete copy of most recent Filed Federal Tax Return (2019 or 2020)
  4. Payroll Expenses
    1. IRS Form 940 & 941 for 2019 or 2020
    2. State quarterly wage unemployment insurance tax reporting forms for each quarter in 2019 or 2020 (whichever used to calculate loan amount)
    3. Payroll Summary Report for 2019
      1. If not available, Employee Pay Stubs as of February 15, 2020.
    4. Evidence of any retirement and health insurance contributions
    5. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020
  5. Items may vary slightly depending on the structure of your business

From the Individual(s)

  1. Driver's Licenses of any individual with a 20% or more ownership in the Borrowing entity
 

APPLY: FIRST TIME

 

Second Time BCT Applicant

The Second-Time BCT Applicant process is for PPP applicants who previously applied for a PPP loan through BCT.

If you previously applied for a PPP loan through BCT, your information is on file. You will need to apply for the Second Draw PPP loan through our PPP loan application Portal.  For access to your PPP application in the Portal, click the button below and our PPP Loan Help team will provide you a unique, personalized link with which you will LOGIN to your application.  Please include in the email the Applicant's name and the name of the business.

When completing the application in the Portal, please be prepared to submit updated information for your Second Draw PPP loan application as outlined below:

From the Applying Company

  1. Documentation that proves your 25% or greater revenue reduction in 2020 relative to 2019. That documentation can include relevant tax forms or if relevant tax forms are not available, quarterly financial statements or bank statements. 
    1. The application process will ask for both the quarter in each year and the gross receipts for each period.
  2. Updated payroll information if seeking a larger loan amount than the First Draw PPP Loan
  3. Other information as requested.

Second Time Non-BCT Applicant

The Second-Time Non-BCT Applicant process is for PPP applicants who previously received a PPP loan through a different financial institution other than BCT.

If you previously received a PPP loan through another financial institution, we do not have your data on file.   BCT has on online PPP Application Portal to simplify the process.  Applicants will need to submit information and required documentation through the online Portal.  The link below will take you to the Portal.

Please be prepared to submit updated information for your second PPP loan application as outlined below:

For the Loan Application

  1. EIN (Employer Identification Number) Verification
  2. PPP First Draw SBA Loan number – you will need this for the application.  If you do not have this loan number, you must contact the lending institution who provided your First Draw PPP Loan.
  3. Organizational Documents
    1. Example of documents needed:
      1. By-Laws and Articles of Incorporation
      2. Operating Agreements
      3. Resolutions
    2. 2020 and 2019 Quarterly In-House Financial Statements (Ex. -  Profit and Loss/Income Statement) For proof of reduction of sales by 25%
      1. The application process will ask for both the quarter in each year and the Gross Receipts.
  4. Complete copy of most recent Filed Federal Tax Return (2019 or 2020)
  5. Payroll Expenses
    1. IRS Form 940 & 941 for 2019 or 2020 (whichever used to calculate loan amount)
    2. State quarterly wage unemployment insurance tax reporting forms for each quarter in 2019 or 2020 (whichever used to calculate loan amount)
    3. Payroll Summary Report for 2019
    4. Evidence of any retirement and health insurance contributions
    5. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020

From the Individual(s)

1. Copy of the Driver's Licenses of any individual with 20% or more ownership in the Borrowing entity

 
 

Update:  January 8, 2021

Initial SBA Guidance for PPP; Target Dates for Applications

Keeping to our promise to keep you informed as we navigate through the Paycheck Protection Program (PPP) together, please read below several important updates regarding PPP First and Second Draw Loans.


PPP Loans – Second Round

New funding has been allocated for both first-time loans and for businesses seeking a second draw.  We look forward to helping you should you choose to apply for the first or second time.  The SBA has issued initial guidance on how the second draw program will operate.  While the program is not open today it is scheduled to open for First Draw Loans on Monday, January 11th and for Second Draw loans on Wednesday, January 13th.   We wanted to share information we gathered from their initial guidance and let you know we are ready to serve you.


What we shared previously:

  • Eligible borrowers:​
    • Fewer than 300 employees
    • Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019
    • Stock not traded on a national exchange
    • 501(c)(6) are eligible, but any entity for which lobbying comprises more than 15% of receipts or activities is not eligible
    • Maximum loan – 2.5 times average monthly payroll or $2 million, whichever is less.
    • Businesses in the restaurant and hospitality industries are eligible for loans for 3.5 times average monthly payroll

What we have learned:

  • For returning borrowers, the bank will be able to utilize the documentation collected during the First Draw Loan program. 
  • For loans over $150,000, you will be required to submit documentation showing the 25% reduction in sales from a quarter in 2019 compared to the same quarter in 2020, or by year-over-year comparison. This will be accomplished by review of either Profit & Loss statements (or other Revenue reports) or by submitting your 2019 and 2020 tax returns for the business.
  • For loans under $150,000, borrowers may wait to provide documentation about the 25% reduction in sales until the time of the forgiveness application.
  • As a borrower, you do not need to apply for forgiveness of your First Draw Loan prior to applying for a Second Draw Loan.  However, you will need to document that the money has been spent before the Second Draw Loan can be funded. 
  • The program ends March 31, 2021.


What’s Next:  BCT’s Online Portal Solution

BCT is finalizing an online PPP Loan Origination Portal that will simplify the application process for you.  This portal is similar to the Forgiveness Portal solution many of you have utilized. Once the Portal is updated with the most recent SBA release, we will notify you by an individualized email with your login information. The Portal will provide the following to you as a PPP Loan recipient:

  • Automate the completion of the SBA’s First or Second Draw Application (including digital signature
  • Assist with the calculations to help reduce the possibility of computation errors that may impact loan amount
  • Provide a centralized place to upload supporting documentation for your request

* We will only accept PPP applications through our online PPP Loan Origination Portal.  No paper or email applications will be accepted. We will advise you by email and our website when the portal is active so you will be able to request your log in credentials.

We will notify you when the Portal is open for applications.  You may also visit this page for the most current information we have published.  We anticipate the Portal being opened prior to the SBA’s go live dates of January 11th for First Draw Loans and January 13th for Second Draw Loans.

Thank you for choosing to work with BCT for your PPP loan needs.  If you plan to apply for additional funding, or have additional questions, we stand ready to assist.  Please email your questions to ppphelp@mybct.bank and include “PPP loan 2” in the subject line.

Sincerely,

PPP Loan Team

 

Update December 29, 2020

 

Great News!

Congress has passed a new $900 billion bipartisan COVID-19 relief package and the President has signed it into law. Included in the new bill are many provisions pertaining to PPP.  Below is a summary of our current understanding of the bill.  As we learn more and the SBA releases guidance, we will communicate further.

PPP Loans – Second Round

New funding is being allocated for both first-time loans and for businesses seeking a second draw.  We look forward to helping you should you choose to apply again. The SBA has 10 days to issue guidance on how the second draw program will operate. Additionally, it must supply guidance addressing access to capital issues for underserved communities.

  • Eligible borrowers:

    • Fewer than 300 employees

    • Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019

    • Stock not traded on a national exchange

    • 501(c)(6) are eligible, but any entity for which lobbying comprises more than 15% of receipts or activities is not eligible

  • Maximum loan – 2.5 times average monthly payroll or $2 million, whichever is less. 

    • Businesses in the restaurant and hospitality industries are eligible for loans for 3.5 times average monthly payroll

Thank you for choosing to work with BCT for your PPP loan needs.  If you plan to apply for additional funding, or have additional questions, we stand ready to assist.  Please email your questions to ppphelp@mybct.bank and include “PPP loan 2” in the subject line.

 

More good news…

Reforms to Current PPP

  • EIDL Advance fix. The prior provision in which the EIDL Advance was deducted from the forgiveness decision (as per the CARES Act) has been repealed.

    • This change is retroactive to the start of CARES. It also requires SBA to make borrowers whole if they have already received forgiveness and the EIDL Advance was deducted from that amount.

    • If you have already submitted your PPP Forgiveness Application, please wait for additional guidance as it relates to this aspect of the law.  The law provides that the SBA has 15 days from date of enactment to issue rules related to how the repeal works and how they will make borrowers whole.

    • Simplified forgiveness for smaller loans. For PPP loans of $150,000 or less, you will submit to us a one-page attestation of compliance with program requirements. The inclusion of demographic information is discretionary.

    • If this applies to your loan and you have already submitted a PPP Forgiveness application, please wait for additional guidance. The law provides that the SBA must create this form within 24 days of enactment.

  • Expenses are tax deductible. The new law provides that business expense paid with forgiven PPP loan proceeds may be deducted from taxable income.  Please consult with your accountant or tax preparer.

If you have any questions regarding any of these changes, please email ppphelp@mybct.com and include “Forgiveness Question” in the subject line.

We understand that this has likely been a trying year for you and your business.  You are to be commended for your resolve and ability to adapt to changing circumstances. We are pleased with the provisions in the new stimulus package and are hopeful that it propels your business into a prosperous 2021.

Merry Christmas and Happy Holidays!

Sincerely,

Your BCT PPP Loan Team

 

For more information, contact our PPP Help Team at:
304-728-2419
703-443-4485
PPPHelp@mybct.bank

* BCT is approved to offer SBA loan products under SBA's Preferred Lender programs.