Paycheck Protection Program

The SBA is currently accepting applications for Paycheck Protection loans through August 8, 2020. As a lender under delegated authority for the SBA Paycheck Protection Program ("PPP"), Wood & Huston Bank will facilitate small business loans through the Paycheck Protection Program. All loan terms will be the same for everyone.

If you are a WHB customer and interested in this program, please complete the application and gather the supporting data outlined in the links below and work with your existing Loan Officer. If you are not a current WHB and would like to be contacted by a Loan Officer, please click here.

Summary Features of the SBA Paycheck Protection Program (PPP)

  1. Interest Rate fixed at 1.00%
  2. 5 Year loan term
  3. No payments for the first 16 months
  4. No fees for Borrower
  5. The loan may be fully or partially forgivable after 8-week or 24-week compliance period if the requirements are met by the borrower

Loan proceeds should be for:

  • Payroll cost, including benefits;
    • Salary, wages, commissions or tips (capped at $100,000 on an annualized basis for each employee);
    • Employee benefits including costs for vacation, parental, family, medical or sick leave;
    • Allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
    • State and local taxes (not federal) assessed on compensation; and
    • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020;
  • Utilities, for which service began before February 15, 2020.

How can I apply?

Wood & Huston Bank loan officers are accepting PPP loan applications through August 8, 2020, or until the funds are exhausted. Download the application and related forms below.

Overview from SBA
Borrower Information Fact Sheet from SBA
Application from SBA
Beneficial Ownership
SBA Payroll Calculator

Summary Paycheck Protection Program Application

Please include the following documentation with your application for the Paycheck Protection Program working with your bookkeeper, CPA, or internal financial staff;

  1. SBA Paycheck Protection Application
  2. Documentation showing your payroll amount - see below
  3. Most recent years tax returns - see below
  4. Entity Documentation for new customers (Operating Agreement, EIN Number, etc.), Drivers Licenses of all owners of 20% or more

Small businesses, sole proprietorships, independent contractors, and self-employed individuals can apply for loans to cover their payroll and other certain expenses through existing SBA lenders.

What other documents do I need to include in my application?

You will need to provide your loan officer with payroll documentation.

List of payroll documents 

What counts as payroll cost?

Payroll cost includes:

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave;
  • Allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State or local taxes (not federal) assessed on compensation; and
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee. 

How large can my loan be?

Loans can be for up to two months of your average monthly payroll costs form the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap by SBA. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.

Who can apply?

All businesses - including nonprofits, veterans' organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors - with 500 or fewer employees can apply. Some exceptions exist for others.

Business Operations

Covers business operations from 2/15/2020 - 8/8/2020; the loan must be originated by 8/8/2020. Each applicant must provide evidence the business was in operation prior to 2/15/2020.

How many loans can I take out under this program?

Only one.

Do I need to pledge any collateral for these loans?

No. No collateral is required.

Do I need to personally guarantee this loan?

No. There is no personal guarantee requirement.

However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.

What do I need to certify?

As part of your application, you need to certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
  • You have not and will not receive another loan under the PPP program.
  • You will provide your loan officer documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the 8-week or 24-week compliance period, after receiving this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscriptions, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that the loan officer will use the information you provide to calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the loan officer can share the tax information with the SBA's authorized representatives, including authorized representatives of the SBA Office or Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

How much of my loan may be forgiven?

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8-week or 24-week compliance period after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until December 31, 2020, to restore your full-time employment and salary levels for any changes made between February 15, 2020, and the time you apply for PPP.

To learn more or complete the Payroll Protection Forgiveness application, please visit Paycheck Protection Program Forgiveness.

Start Preparing Now

We recommend you work with your bookkeeper, CPA, or internal financial staff to begin collecting the following documentation to support your application:

  • Payroll reports for 2019 and 2020 year-to-date showing the following by employee and/or officers: Gross wages Paid time off Paid vacationPay for family medical leave State and local taxes (form 940, 941, or 944) 1099s for independent contractors (if applicable)
  • Health insurance premiums paid by the employer under a group health plan
  • Sum of retirement plan funding contributed by the employer (included 401K plans, Simple IRA & SEP IRAs)

Wood & Huston Bank and its subsidiaries are not tax or legal advisors. Please consult your tax or legal advisors for more information regarding your personal situation. We have no such agency relationships with CPAs, tax, or legal advisors.

Date Last Updated: July 6, 2020