The SBA is reopening and accepting First Draw Paycheck Protection (PPP) loan applications beginning January 11 through select community bank lenders. ValueXpress will be processing First Draw PPP loan applications immediately for clients through its participating community bank partner, Peoples Bank. It is important to secure a First Draw PPP loan, if not already received, because borrowers are not eligible for a Second Draw PPP loan unless they have received a First Draw PPP loan.
Full Forgiveness Terms
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement
- employee and compensation levels are maintained;
- the loan proceeds are spent on payroll costs and other eligible expenses; and
- at least 60% of the proceeds are spent on payroll costs.
Who Can Apply
Eligible small entities that together with their affiliates (if applicable) have 500 or fewer employees — including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors — can apply. Entities with more than 500 employees in certain industries that meet the SBA’s alternative size standard or the SBA’s size standards for those particular industries can also apply.
Maximum Loan Amount
For most borrowers, the maximum loan amount of a First Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million.
To apply for a First Draw PPP loan, please contact any of the following ValueXpress representatives, Mike Sneden (firstname.lastname@example.org; 212-883-6447), Gary Unkel (email@example.com; 212-883-6475) or Jim Brett (firstname.lastname@example.org; 212-883-6492).