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Thank you for allowing us to be a part of your Paycheck Protection Program (PPP) loan. As you may already be aware, a new COVID-19 relief package has been signed into law allocating an additional $285 billion to fund more PPP loans and provide simplified forgiveness for existing PPP loans less than $150,000.

The program will consist of two types of PPP loans, first for applicants who have not previously received PPP funds (First Draw) and others who have previously or may currently have an existing PPP loan in place (Second Draw). The program re-opened on Monday, January 11, 2021 for “First Draw” applicants and today, Wednesday, January 13, 2021 for “Second Draw” applicants. We look forward to assisting you on any additional financial needs you may have. We have submitted multiple applications and have already begun receiving approvals.

Paycheck Protection Program as Amended by Economic Aid Act
First Draw:

• Company must have been in operation on or before February 15, 2020
• Payroll based formula to calculate maximum loan amount may be based on 2019 or 2020 expenses
• Max loan amount based on average monthly payroll times 2.5 (wages in excess of $100,000 are ineligible)
• Proceeds may be used towards payroll, benefits, mortgage interest, rent or utility expenses to qualify for forgiveness. At least 60% must be spent on payroll to qualify for full forgiveness.
• Borrowers may choose a covered period between 8 and 24 weeks.

Second Draw:

• Only existing or previous PPP loan borrowers are eligible
• Must have or will use the full amount of previous PPP loan proceeds (previous forgiveness is not required).
• Must have experienced at least a 25% decrease in revenues through 2020 vs. 2019-year end numbers. Or any 2020 quarter vs. 2019 quarter, must match (i.e., 2nd quarter 2020 vs. 2nd quarter 2019).
• Must be able to demonstrate that company experienced the 25% decrease in revenue.
• Payroll based formula to calculate maximum loan amount may be based on 2019 or 2020 expenses

Please find the following links to assist you in your application process.
First Draw Application
Second Draw Application
U.S. Small Business Department – Paycheck Protection Program
U.S. Department of Treasury – Small Business Paycheck Protection Program

Feel free to contact your lender if you have any questions or email us at ppp@gstbank.com

Again, on behalf of all of us at Greater State Bank, we thank you for trusting us with the financial needs of your business.

Sincerely,

Robert A. McGurk
President & CEO