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Paycheck Protection Program Round 2

The Paycheck Protection Program is administered by the U.S. Small Business Administration. It is designed to provide small businesses with funds for payroll, employee benefit costs and other eligible expenses.

Information on the 2nd Round of PPP Loans
 

Extraco Banks will participate in the 2nd round of Paycheck Protection Program funding.
 

Applications will be limited to existing Extraco Banks customers, as of January 1, 2020.

The Independent Bankers Association of Texas has provided a preliminary understanding of the law just signed. (Highlights are below and final rules, procedures and application forms will be determined by the SBA, at its sole discretion.) Click here to view.
 

Eligibility for 1st Draw PPP Loans

Max loan amount is $10,000,000. 

Actual loan amount is based on the same payroll-based formula from 2020.

For the 1st Draw PPP loan:

  • Did not receive a PPP loan in 2020
  • In operation as of 2/15/2020
  • An eligible business per SBA guidelines
  • Had employees you paid salaries for or were an eligible self-employed individual, independent contractor, or sole proprietorship with no employees
  • Must have been an Extraco customer as of 1/1/2020 to process loan through Extraco

Eligibility for 2nd Draw PPP Loans

Max loan amount is $2,000,000. 

For the 2nd Draw PPP Loan:

  • Have already appropriately used all proceeds from Round 1 PPP funding
  • Have a 25% decline in gross revenues for any quarter in 2020 compared to the same quarter in 2019 or for the year 2020 compared to the year 2019
  • Have 300 employees or less
  • Must have been an Extraco customer as of 1/1/2020 to process loan through Extraco

Please refer to the SBA guidance issued 1/6/2021 for more detailed information on eligibility and program guidelines.
 



Items Needed for 1st Draw Application 

  • PPP Loan Application

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  • 2019/2020 Salary reconciliation supported by:

A. For Non-Self Employed

  1. IRS Form W-3, Box 5, for 2019 or 2020 or 4 quarters of 941’s (line 5c – column 1)
  2. State Quarterly Wage Unemployment Insurance Tax form for the same 4 quarters as 941’s
  3. Itemization statement to document 2019/2020 salary amount per employees, with adjustments to max salary at $100k per person
  4. Documentation of payroll benefits costs (group health care, retirement benefits allowance for dismissal, dental, vision, cafe plans, etc.) on all salaried employees that is being included in the PPP loan amount
  5. Payroll Report for February 15, 2020

B. For Self-Employed with No Employees

  1. 2019 or 2020 IRS 1040 Schedule C
  2. 2019 or 2020 IRS Form 1099-MISC
  3. Invoice, bank statement, or book of record to establish customer is self-employed
  4. Invoice, bank statement, or book of record to establish customer was in business on or around 2/15/20.

C. For Self-Employed with Employees

  1. 2019 or 2020 IRS 1040 Schedule C
  2. 4 quarters of 941’s (line 5c – column 1)
  3. State Quarterly Wage Unemployment Insurance Tax form for same 4 quarters as 941’s
  4. Documentation of payroll benefits costs (group health care, retirement benefits, allowance for dismissal, dental, vision, cafe plans, etc.) on all salaried  employees that is being included in the PPP loan amount
  5. Payroll Report for February 15, 2020

D. For Farm and Ranch (Schedule F)

  1. 2019 or 2020 IRS 1040 Schedule F
  2. Same items as self-employed with no employees or self-employed with employees
     

Items Needed for 2nd Draw Application 

  • SBA Second Draw Application

 

 

 

 

  • 2019/2020 Salary reconciliation supported by:

A. For Non-Self Employed

  1. IRS Form W-3, Box 5, for 2019 or 2020 or 4 quarters of 941’s (line 5c – column 1)
  2. State Quarterly Wage Unemployment Insurance Tax form for same 4 quarters as 941’s
  3. Itemization statement to document 2019/2020 salary amount per employees, with adjustments to max salary at $100k per person
  4. Documentation of payroll benefits costs (group health care, retirement benefits allowance for dismissal, dental, vision, cafe plans, etc.) on all salaried employees that is being included in the PPP loan amount
  5. Payroll Report for February 15, 2020

B. For Self-Employed with No Employees

  1. 2019 or 2020 IRS 1040 Schedule C
  2. 2019 or 2020 IRS Form 1099-MISC
  3. Invoice, bank statement, or book of record to establish customer is self-employed
  4. Invoice, bank statement, or book of record to establish customer was in business on or around 2/15/20.

C. For Self-Employed with Employees

  1. 2019 or 2020 IRS 1040 Schedule C
  2. 4 quarters of 941’s (line 5c – column 1)
  3. State Quarterly Wage Unemployment Insurance Tax form for same 4 quarters as 941’s
  4. Documentation of payroll benefits costs (group health care, retirement benefits, allowance for dismissal, dental, vision, cafe plans, etc.) on all salaried employees that is being included in the PPP loan amount
  5. Payroll Report for February 15, 2020

D. For Farm and Ranch (Schedule F)

  1. 2019 or 2020 IRS 1040 Schedule F
  2. Same items as self-employed with no employees or self-employed with  employees
  • For loans greater than $150,000, documentation proving the decline in gross revenues for the period chosen in 2020 compared to the same period in 2019
  • For loans $150,000 or less, documentation proving decline in gross revenues is not required at application but will be required before forgiveness application can be submitted.  

 

*Other items may be requested as needed during the application process.

Return the application and other required documents via email to [email protected]

For more information, please contact your relationship manager.
 



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Extraco is committed to delivering the best customer experience possible.  The SBA is solely responsible for loan approvals and loan forgiveness. Extraco cannot warrant, represent, nor guarantee that completed applications will be funded due to internal and external limitations.