Paycheck Protection Program (PPP) | Lead Bank


Paycheck Protection Program Loans

Your small business is important to you and to our communities. The Federal CARES Act is designed to support small businesses through this difficult time. The Paycheck Protection Program (PPP), signed into law on March 27, 2020, is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is nearly a $350 billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans, made by approved banks. The funding is meant to help retain workers, maintain payroll, and cover rent/mortgage/utility expenses. On April 24, 2020, President Trump signed an additional law providing another $484 billion stimulus package. This additional stimulus package includes an extra $310 billion of funding for the Paycheck Protection Program, which ran out earlier this month. This additional funding will allow small businesses previously unable to secure funds under the PPP an opportunity to obtain forgivable loans to keep employees on the payroll. 

How it works

  • Who’s eligible?  Small businesses including sole proprietors, independent contractors, self employed individuals, nonprofit organizations, tribal business concerns, and Veterans’ associations, that:
    • Employ 500 or fewer people except for in certain industries.
      • Click here for the applicable SBA employee-based size standards for those industries
    • Were in business on or before February 15, 2020.
    • Had employees to whom they paid salaries and for whom they paid payroll taxes.
    • Independent contractors, self employed.
    • You may review SBA business size and industry NAICS code standards that qualify a business for SBA programs here.

  • Who can make PPP loans?  Only SBA approved lenders, like Lead Bank, can offer these loans.


  • What does the loan cover?
    • Operating expenses, such as payroll, rent, lease payments, utilities, and mortgage interest obligations.
    • Payroll costs that may include wages, salaries, retirement contributions, healthcare benefits, insurance premiums, covered leave, and other expenses.
    • Interest on other debt obligations incurred before February 15, 2020.


  • How is the loan structured?  The amount of the unsecured loan can be 2.5x average monthly payroll (excluding independent contractors) up to a maximum of $10 million. No payments for first 6 to 12 months, loan forgiveness for qualifying expenses, and terms up to 10 years on remaining balance.


  • When do I need to use my PPP funds by? You must spend all of your PPP money within eight weeks of receiving it in order to maximize the program's loan-forgiveness guidelines. You must also spend the money on eligible expenses and rehire workers no later than June 30, a deadline established in the first $349 billion PPP round. Also, please note that the IRS is not allowing the tax deduction for any expenses paid with PPP loan proceeds that are ultimately forgiven.  Payroll costs, rent and utilities paid with the PPP loan cannot be tax deductions, assuming the PPP loan proceeds used to pay those costs are forgiven.

Paycheck Protection Program Loan Application

Before visiting our secure PPP application, gather your payroll documentation to calculate your average monthly average payroll costs. (More info on how to calculate payroll costs here).
What you need to apply for a SBA Paycheck Protection Program loan: (The following information will be required on the PPP application).
- Legal business name, address, and phone number
- Date business was first established
- Business tax identification or Social Security number
- Ownership type
- Number of owners
- Gross annual revenue
- Assertion that all applicants are a US citizen or permanent residence
- Payroll tax filings
- Payroll Tax form 941
- Form 1099-Misc if you are an independent contractor
- Income and expenses from a sole proprietorship
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