Park Bank
 

Paycheck Protection Program Loans

2nd Draw PPP Program

The 2nd Draw PPP program is intended to boost access for minority, underserved, veteran, and women-owned businesses through "Community Financial Institutions." Here is what you need to know:

Eligibility:

  • 2nd Draw PPP loans are available until 3/31/21. Borrowers must have experienced a gross revenue reduction of 25% in any quarter of 2020 compared to the same quarter of 2019.
  • 2nd Draw PPP loans are only available to borrowers that received a 1st Draw PPP loan and has used the full amount of the 1st Draw on eligible expenses before the 2nd Draw is disbursed.
  • Borrowers must be current and not defaulted in the last 7 years and caused a loss to the government.
  • Park Bank will only extend PPP loans to existing customers as of 1/8/21. Let's discuss exceptions before applications are processed.
  • 1st Draw PPP Loans are still available (and don't have the revenue reduction requirement.)

Loan Amount:

  • For most businesses...2.5x average monthly payroll costs calculated on either
    a.)The twelve-month period prior to when the loan is made, or
    b.)calendar years 2019 or 2020.
  • For borrowers in the "Accommodation and Food Services" sector like bars and restaurants (NAICS code beginning with '72'...https://www.census.gov/eos/www/naics/), 3.5x average monthly 2019 or 2020 payroll costs.

Documentation:

  • Generally the same as documentation required for 1st Draw PPP Loans. We can also "re-use" documentation from 1st Draw PPP Loans.
  • For loans greater than $150,000, the SBA requires documentation for the 25% revenue reduction during the application process. For loans less than $150,000, the SBA requires documentation of the reduction as part of the forgiveness process. Our goal is to maximize forgiveness, so we’re going to require documentation of revenue reduction during the application process for ALL loans regardless of size.

Terms & Conditions:

  • The guarantee percentage is 100 percent.
  • No collateral or personal guarantees required.
  • The interest rate will be 100 basis points or one percent, calculated on a non-compounding, non-adjustable basis.
  • Five year maturity.

CLICK HERE TO START YOUR APLICATION

As always, please contact your loan officer with questions or assistance.

Holmen:
Lori Raabe – (608) 526-5503; lori.raabe@parkbank.bank
Chris Welch – (608) 793-5503; chris.welch@parkbank.bank
Morgan Farmer – (608) 790-2877 (cell); morgan.farmer@parkbank.bank

Sparta:
Lance Hauser – (608) 269-0430; lance.hauser@parkbank.bank
Morgan Farmer – (608) 790-2877 (cell); morgan.farmer@parkbank.bank

La Crosse:
Todd Holtz – (608) 793-5511; todd.holtz@parkbank.bank
Ashley Bohl – (608) 793-5505; ashley.bohl@parkbank.bank
Sara Buchner – (608) 526-5502; sara.buchner@parkbank.bank
Morgan Farmer – (608) 790-2877 (cell); morgan.farmer@parkbank.bank

PPP Loan Forgiveness

The deferral period for Paycheck Protection Program (PPP) loans has been automatically extended from six to ten months. No modifications to your loan is necessary. Unless you submit a forgiveness application first, your first payment is not due until the 11th month after your note date.

PPP loans under $50,000 requires the 3508S Application:

PPP loans between $50,000 and $150,000 requires the 3508EZ Application:

PPP loans over $150,000 requires the 3508 Application:

Required Documentation for All PPP Loans

Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:

  1. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
  2. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
    1. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
    2. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
  3. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.

Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.

  1. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.
  2. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.
  3. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.