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Paycheck Protection Program

The brand new PPP program is for small businesses, non-profits, sole proprietors, and independent contractors. The program will make new loans through March 31, 2021 or until the new funding is exhausted. Prosper Bank is recommending that you visit the Treasury Website to review the program requirements and borrower information before applying for a PPP loan. If you meet the program requirements and would like to apply PPP loan, please use the information below to contact us. Please note that final guidance from the SBA is still pending. Prosper Bank is unable to close or disburse any loan funds until authorized to do so by the SBA. Once authorization is received, Prosper Bank may be in contact for additional information necessary to complete your application prior to submission to the SBA.

 

For Questions or Assistance

Please contact us at PPP@ProsperBank.com or call us at (610) 822-2660

 

Eligibility

You are eligible if,

  • You have less than 300 employees, and,
  • You have experienced a greater than 25% reduction in gross receipts during the first, second, third, or fourth quarter in 2020 relative to the same quarter in 2019.

Note: Publicly traded companies and those with strong ties to China are not eligible for PPP loans

 

Loan Amount

  • The maximum loan amount is the average monthly payroll costs for the entity during the 12 months prior to the loan or, at the election of the borrower, 2019 multiplied by 2.5 (or 3.5 for employers in the accommodation and food service industry).
  • Seasonal employers utilize average monthly payroll costs for a 12-week period between February 15, 2019 and February 15, 2020. A loan may not exceed $2 million.
 

PPP Loan Forgiveness

The amount of loan that can be forgiven is the lesser of:

  • Costs incurred or expenditures made between the date of the origination of the loan and ending on a date of your choosing that is between 8 and 24 weeks after origination for: (a) payroll costs, (b) qualifying mortgage interest or rent obligations, (c) covered utility costs, (d) covered operations costs, (e) covered property damage, (f) covered supplier costs, and (g) covered worker protection expenditures; or
  • Payroll costs for the same period divided by 0.60 (this serves as a cap on the total loan forgiveness to ensure that at least 60% of the total amount forgiven is for payroll costs).
  • The amount of loan forgiveness can be reduced if the borrower has (1) reduced the number of employees or (2) employee salaries by more than 25%.
 

PPP Loan Terms

In general, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs (capped at $100,000 annual salary per employee) during the year prior to the loan or the previous calendar up to a maximum of $2 million, subject to the following exceptions:

  • Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020.
  • New entities may receive loans of up to 2.5X the sum of their average monthly payroll costs, capped at $100,000 annual salary per employee.
  • Entities in Accommodations and Food Services (NAICS codes beginning in “72” as reported on an entity's tax returns) may receive loans of up to 3.5X average monthly payroll costs.
  • Businesses with multiple locations that are eligible entities under the initial PPP requirements may employ not more than 300 employees per physical location.
  • Waiver of affiliation rules that applied during initial PPP loans apply to a second loan.
 

Loan Forgiveness

Borrowers of a PPP second draw loan are eligible for loan forgiveness equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. Full forgiveness will still require the same 60/40 allocation between payroll and non- payroll costs that applies to initial PPP loans. Forgiveness for loans of not more than $150,000, will have a simplified forgiveness process.

 

Apply Today

We will be prioritizing the processing of requests from existing Prosper Bank customers. You do not need to be a current Prosper Bank customer to apply for CARES Act Relief through us. We are limiting non-customers applicants to individuals, nonprofits and businesses within our existing regional communities.

Complete your SBA PPP loan application today. Apply Now

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