SBA Loans: COVID-19 Programs

Disclaimer: Freedom Bank is working hard to provide the most accurate and up-to-date information, but things are changing quickly– sometimes by the hour. Please understand that details and specifications may change as the SBA refines the programs and approval processes.

Updated: 03/24/21 at 3:56PM MST


Paycheck Protection Program (PPP)

The SBA has announced that the Paycheck Protection Program has been extended to enable businesses who have not yet received a PPP Loan to apply for a First Draw PPP Loan and to enable eligible businesses that previously received a PPP Loan to access additional funds by applying for a Second Draw PPP Loan.

We recommend that interested businesses prepare to submit as early as possible. The last day to apply for and receive a PPP loan is March 31, 2021.

Definitions:

A “First Draw” PPP Loan is the term used to describe a business entity’s first PPP Loan. If you have not received a PPP loan, you should use the application process for a “First Draw” PPP loan. Click here to jump to the First Draw PPP Loan Section.

If you received a PPP loan in 2020 (a “First Draw”), and believe you may be eligible for a higher Maximum Loan Amount for your First Draw PPP Loan based upon new guidance released with the Economic Aid Act, please contact us to discuss applying for a “First Draw Increase”.

A “Second Draw” PPP Loan is used to describe a second, separate PPP loan to a business that previously received a PPP Loan. If you are interested in applying for a Second Draw PPP Loan, scroll down to review details regarding eligibility and application materials for Second Draw PPP Loans.

Please see the SBA Guidance for the most complete information about the Paycheck Protection Program:

IFR: Paycheck Protection Program (PPP) as Amended by the Economic Aid Act
IFR: Paycheck Protection Program (PPP) Second Draw Loans

Second Draw PPP Loans

If your business received a PPP loan in 2020, you may be eligible for additional relief through a Second Draw PPP Loan.

How to Apply:

  1. Look up the calculation method that specifically matches your business situation: Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide (SBA Guidance)
  2. Fill out our PPP Loan Calculator for Second Draw PPP Loans
  3. Fill out the SBA Borrower Application Form 2483-SD. Please take the time to carefully review the application, answer all questions, and initial in each place where initials are required. Submitting a complete application will help expedite the process.
  4. Submit your application, the Loan Calculator, and any supporting documentation securely at the following link. Please select your lender’s name from the “Or Send To:” dropdown menu. If you have any issues or questions, please contact your lender directly or call our main bank line 406-892-1776 and ask for assistance with a PPP loan to be routed to the first available specialist.

Secure File Upload

Summary of Eligibility Requirements for Second Draw PPP Loans:

  • Must have been in operation on or before February 15, 2020.
  • Must have received a First Draw PPP loan in accordance with the eligibility criteria.
  • Must have used, or will use, the full amount of its First Draw PPP Loan (including the amount of any increase on such First Draw PPP Loan) on authorized uses on or before the expected date on which the Second Draw PPP Loan will be disbursed.
  • Must not employ more than 300 employees, unless the business satisfies the alternative criteria for businesses with a North American Industry Classification System (“NAICS”) code beginning with 72, or is an eligible news organization with more than one physical location.
  • Must have had a reduction of 25% or more in gross receipts in any quarter of 2020 when compared with the same quarter of 2019.
    • Note: The amount of any forgiven First Draw PPP Loan shall not be included toward any borrower’s gross receipts.
  • For a complete description of all eligibility requirements, please see the SBA Interim Final Rule for Second Draw Loans.

Second Draw PPP Loan Details and Forgiveness:

  • The loan may be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, or covered worker protection expenditures. NOTE: At least 60% of the forgiven amount must have been used for payroll. An eligible borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes and employee and compensation levels are maintained or, if not, an applicable safe harbor or exemption applies.
  • Maximum Loan Amount: The average total monthly payment for payroll costs incurred or paid by the borrower during 2019 or 2020 (at the election of the borrower) multiplied by 2.5; up to a maximum of $2MM.
      • For borrowers assigned a NAICS code beginning with 72 at the time of disbursement, the Economic Aid Act provides that the maximum loan amount is equal to 3.5 months of payroll costs rather than 2.5 months.
  • Term: 5 Years
  • Interest Rate: 1.0%
  • No collateral or personal guarantees are required.
  • Neither the government nor Freedom Bank will charge small businesses any fees.
  • For a complete description of program details, please see the SBA Interim Final Rule for Second Draw Loans.

First Draw PPP Loans

If your business did not receive a PPP loan in 2020, you may be eligible to apply for a First Draw PPP Loan.

How to Apply

  1. Look up the calculation method that specifically matches your business situation: How to Calculate First Draw PPP Loan Amounts (SBA Guidance)
  2. Fill out our PPP Loan Calculator for First Draw PPP Loans
  3. Fill out the SBA Borrower Application Form 2483. Please take the time to carefully review the application, answer all questions, and initial in each place where initials are required. Submitting a complete application will help expedite the process.
  4. Submit your application, the Loan Calculator, and any supporting documentation securely at the following link. Please select your lender’s name from the “Or Send To:” dropdown menu. If you have any issues or questions, please contact your lender directly or call our main bank line 406-892-1776 and ask for assistance with a PPP loan to be routed to the first available specialist.

Secure File Upload

Summary of Eligibility Requirements for First Draw PPP Loans:

  • Must have been in operation on or before February 15, 2020.
  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors, and self-employed persons), private non-profit organizations, or 501(c)(19) veterans organizations affected by coronavirus/COVID-19. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
    • New Entities Eligible for PPP Loans:
      • Housing Cooperatives defined in section 216(b) of the Internal Revenue Code of 1986 which employ no more than 300 employees
      • FCC license holders and newspapers with more than one physical location if the business has not more than 500 employees per physical location or the applicable SBA size standard including 511 public colleges and universities that have a public broadcasting station if the organization certifies the loan will support locally focused emergency information.
      • 501(c)6 organizations if:
        • The organization does not receive more than 15% of receipts from lobbying
        • Lobbying activities do not comprise more than 15% of activities
        • The cost of lobbying activities did not exceed $1MM during the most recent tax year that ended prior to February 15, 2020
        • The organization has 300 or fewer employees
        • NOTE: Professional sports leagues or organizations with the purpose of promoting or participating in a political campaign or other political activities are not eligible under this section.
      • Destination Marketing Organizations if:
        • The organization does not receive more than 15% of receipts from lobbying
        • Lobbying activities do not comprise more than 15% of activities
        • The organization has 300 or fewer employees
        • The organization is registered as a 501(c) organization, a quasi-government entity or a political subdivision of a state or local government.
  • For a complete description of all eligibility requirements, please see the SBA Interim Final Rule for the Paycheck Protection Program (PPP) as Amended by the Economic Aid Act.

First Draw PPP Loan Details and Forgiveness:

  • The loan may be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, or covered worker protection expenditures. NOTE: At least 60% of the forgiven amount must have been used for payroll. An eligible borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes and employee and compensation levels are maintained or, if not, an applicable safe harbor or exemption applies.
  • Maximum Loan Amount: The average total monthly payment for payroll costs incurred or paid by the borrower during 2019 or 2020 (at the election of the borrower) multiplied by 2.5; up to a maximum of $10MM.
  • Term: 5 Years
  • Interest Rate: 1.0%
  • No collateral or personal guarantees are required.
  • Neither the government nor Freedom Bank will charge small businesses any fees.
  • For a complete description of program details, please see the SBA Interim Final Rule for the Paycheck Protection Program (PPP) as Amended by the Economic Aid Act.

We know that this is an uncertain time for many businesses, so please do not hesitate to reach out to a lender directly using the contact information below, or contact the bank at (406) 892-1776 to get connected with the first available small business lender.

Bank Phone Number – (406) 892-1776

Don Bennett, President – (406) 892-6622

Max Faller – (406) 892-6631

Cameron Johnson – (406) 892-6626