PPP2

To assist interested parties in preparation of completing the PPP application, we have created checklists of documents to gather prior to applying based on the entity type.

These checklists (updated January 9, 2021) are based on the NEW SBA guidance and are subject to change.

President Trump signs COVID Relief, government funding bill

• You must move their primary business operating account to Regent Bank; or,
• If you are unable to move your primary business operating account to us, you may move your primary personal checking account to Regent Bank.

We are fully committed to working with our clients and the communities in which we serve.  Regent Bank is going to accept PPP2 applications from existing clients only.  If you have a deposit account with us or a non-PPP loan with us, you qualify as an existing client.

For those clients who currently only have a PPP loan (whether currently on our books or already paid off), we will need for you to please do the following so we can provide you with a PPP2 forgivable loan:

• You must move their primary business operating account to Regent Bank; or,
• If you are unable to move your primary business operating account to us, you may move your primary personal checking account to Regent Bank.

If you have a friend of family member who is not currently a client or PPP client if ours, they will also qualify by moving their business operating account or personal checking account to us prior to applying.

This will be a continually evolving situation, so make sure and check back here with latest information.  We will continue to update you as new details emerge. (www.regent.bank/ppp2)

If you wish to beat the rush and open up your accounts now, please give us a call at (877) 488-4790 or visit your local Regent Bank office and ask for one of our friendly Personal Bankers.  

PPP2 Layout and Enhancements

Please note that there are enhancements to the PPP Program and SBA programs outlined below as of 12/24/20:

• Creates a second round of PPP loans for eligible businesses. 
• Defines eligibility for the PPP second draw as small businesses that have no more than 300 employees and demonstrate at least a 25 percent reduction in gross revenues between comparable quarters in 2019 and 2020. 
• Establishes a maximum loan size of 2.5X average monthly payroll costs, up to $2 million. 
• Allows small businesses assigned to the industry NAICS code 72 (Accommodation and Food Services) to receive PPP second draw loans equal to 3.5X average monthly payroll costs in order to helps these businesses combat onerous State and local restrictions. 
• Maintains existing expansions in eligibility for businesses assigned to the industry NAICS code 72 (Accommodation and Food Services).
• Borrowers receive full loan forgiveness if they spend at least 60 percent of their PPP second draw loan on payroll costs over a time period of their choosing between 8 weeks and 24 weeks. 
• Affirms the eligibility of churches and religious organizations and prohibits a future administration from making them ineligible. 
• Preserves the application of affiliation rules to nonprofits.
• Includes set-asides to support first-time PPP borrowers with 10 or fewer employees, second-time PPP borrowers with 10 or fewer employees, first-time PPP borrowers who have been made newly eligible, and second-time returning PPP borrowers. Additionally, provides for a set-aside for loans made by community lenders. 

• Expands PPP allowable and forgivable expenses to include supplier costs on existing contracts and purchase orders, including the cost for perishable goods at any time, costs relating to worker protective equipment and adaptive costs, and technology operations expenditures.  Provides needed assurances to PPP lenders that no enforcement action could be taken against a lender who originated the loan in good faith, complied with all regulations, and relied in good faith on a borrower’s certification and documentation. 
• Provides for the deductibility of PPP expenses 
• Enhances borrower flexibility by allowing borrowers to select their loan forgiveness covered period between 8 weeks and 24 weeks.
• Simplifies the forgiveness application process for smaller loans up to $150,000 while increasing SBA’s ability to audit and review forgiven loans. 
• Allows PPP borrowers to include additional group insurance payments when calculating their PPP payroll costs. This would cover insurance plans such as vision, dental, disability and life insurance. 
• Allows borrowers who returned all or part of their PPP loan to reapply for the maximum amount applicable. It also allows lenders to recalculate borrower’s loan amounts due to changes in regulations regardless of whether SBA Form 1502 has been submitted. 
• Establishes the loan amount calculation for farmers and ranchers to better align with recent years’ income. 
• Defines “seasonal employer.” 
• Expands PPP eligibility for certain 501(c)(6) nonprofits and Destination Marketing Organizations with 300 or fewer employees that do not receive more than 15 percent of their revenue from lobbying. 
• Expands PPP eligibility to local newspapers and T.V., and radio stations previously made ineligible by their affiliation with other stations. 
• Establishes a procedure in the bankruptcy process if the Administrator determines certain small business debtors in Chapter 11 are eligible for PPP loans. 
• Eliminates the requirement that EIDL advances be subtracted from PPP forgiveness. 
• Emergency Enhancements to SBA’s Lending Programs 
• Temporarily enhances the terms of the 7(a) loan program by increasing the loan guarantee to 90 percent and offering reduced or no fees for the borrower and the lender. Additionally, it would temporarily increase the 7(a) express loan limit and loan guarantee to provide access to needed working capital.
• Temporarily eliminates fees for the 504 loan program and favorable terms for refinancing loans. 
• Increases the aggregate loan limit for microloan intermediaries in order to ensure intermediaries have increased capacity to make loans to underserved and underbanked borrowers. 
• Extends the Small Business Debt Relief program, Section 1112 of the CARES Act, which would defer payments of principal and interest on new and existing SBA 7(a), 504, and Microloan programs for eligible entities. 

• Establishes a $15 billion grant program to support shuttered live venues, theaters, museums, and zoos that have experienced significant revenue losses. 
• Provides enhanced verification and requires increased transparency of SBA’s oversight plans to ensure funds are directly benefiting eligible entities.