Manage your accounts, transfer money and track activity online.
Paycheck Protection Program | Economic Injury Disaster Loan | Peoples State Bank Options
Please watch our short webinar below about the PPP loan process. You can view our slide deck from the presentation here.
January 2021 PPP Information
Congress has passed a $900 billion COVID-19 relief package, the Consolidated Appropriations Act of 2021, which was signed by President Trump on Dec. 27. The bill includes a new round of Paycheck Protection Program (PPP) funding.
The $284 billion set aside for PPP loans will be administered by the Small Business Administration (SBA). Peoples is providing information based on what we have received from SBA for both our current PPP loan customers (click here) and for those that have not obtained PPP loan funding previously (click here).
Second Draw PPP Loan
Peoples State Bank is partnering with CliftonLarsonAllen (CLA) on an automated process for second draw PPP applications.
The SBA will review all applications prior to giving the Bank any authorization or approval. Please expect it to be days to weeks (as communicated by the SBA) before we have commitment on your second draw loan.
Second Draw PPP Application Process
Peoples State Bank is partnering with CliftonLarsonAllen (CLA) on an automated process for second draw PPP applications. Peoples borrowers may use their login credentials on the CLA portal to begin their application as of January 20, 2021. A majority of your information will be pre-populated based on your first draw application.
Current PPP customers that have not yet logged into the CLA portal can contact BorrowerPPP@claconnect.com directly to obtain access. If you are new to Peoples, or interested in a first draw PPP loan, please contact a commercial banker for help at 888.929.9902.
For any PPP related questions, please contact us via PPPinfo@bankpeoples.com or your commercial lender.
Forgiveness Applications for Borrowers Under $150,000 ONLY
The SBA has released a new forgiveness application form 3508S for borrowers under $150,000. This is a one-page attestation on use of funds and employee headcount (with no supporting documentation). Peoples PPP borrowers can submit the 3508S one-page application to CliftonLarsonAllen (CLA) for the forgiveness of their PPP loan. Access the new form here.
Timeline for Forgiveness Applications
Once you submit your application to CLA for forgiveness they review for accuracy and completeness and will follow up if further information is needed. Once complete by CLA, they will send to Peoples and we will in turn submit to the SBA. This first process can take up to 60 days. Once submitted to the SBA, they have up to 90 days to provide a final decision on the forgiveness application. Please understand that once you submit your application, it could be a matter of weeks or even months until that final decision is made. The Bank will notify you, in writing, and have you sign an attestation of forgiveness within 15 days of forgiveness by the SBA.
If you did not previously receive a PPP loan, here is what you need to know if you are considering applying for a PPP loan.
Sixty percent of the funds borrowed by businesses under the new PPP loan must still be used for payroll. However, the other expenses eligible for payment by a business have been expanded. While we await final rules, we expect payments for cloud computing, sales monitoring, and supplier goods—as long as the contract to purchase those goods was in place prior to application for the PPP loan. Perishable goods are excluded from that requirement. Other expenses expected to be covered include costs for sneeze guards, personal protective equipment, switch to outdoor dining, and other expenses to make a business COVID-19-safe. The money can also be used toward expenses incurred through vandalism or looting that occurred last summer.
During this second PPP loan process, borrowers have a more flexible time frame in which they can spend the PPP funds and still be eligible to have the loan forgiven. A borrow can choose the end date within an eight- or 24-week time frame.
Maximum Loan Amount
The maximum loan under the new PPP program is $10 million. The amount that most individual businesses can request is still based on a formula of 2.5 times average payroll. The formula has been adjusted to food service and accommodations businesses to 3.5 times average payroll.
Employee Retention Tax Credit
Previously, a business that received a PPP loan could not also claim an employee retention tax credit. This has now changed and is retroactive—meaning businesses that received a PPP loan can claim the tax credit for 2020 by the end of the year. Moving forward into 2021, the tax credit program is expanded, from 50% of wages per employee up to $10,000 per year, to 70% of wages per employee up to $10,000 per quarter. Even though a business can both claim a tax credit, and a PPP loan, they can’t use both programs to cover the same wages.
PPP Application Process
For further questions on the PPP process, please contact your commercial banker for help at 888.929.9902.
We’re Here For You
For any PPP related questions, please contact us via PPPinfo@bankpeoples.com.
Our entire team at Peoples State Bank is here for you. Thank you for the privilege to serve you.
The SBA will provide low-interest federal disaster loans to small businesses affected by the COVID-19 pandemic. Businesses must apply directly through the SBA for this loan.
HOW IT WORKS
Under the SBA’s Economic Injury Disaster Loan (EIDL) program, small businesses and non-profits may qualify for up to $2 million in loans to cover losses resulting from the pandemic.
Businesses may request an expedited disbursement that is to be paid by the SBA within three days of the request. The advance may not exceed $10,000, and must be used for authorized costs, but is otherwise not repayable if the EIDL Loan is not approved by the SBA.
More details are available on the SBA’s website.
People State Bank's commercial banking team is poised to assist you with other lending needs and business lines of credit. Contact your commercial banker for more information, or to discuss options that may be available.
CASH MANAGEMENT OPTIONS
We offer programs designed to help maintain control of your cash flow and daily cash management, especially in a digital environment.
The COVID-19 pandemic reminds all of us that employees, financial operations, supply chains, and customer relations can all be affected. Fraudsters and cyber-criminals are also taking this opportunity to catch your business with its guard down.
That’s why every business owner needs a plan to meet disruptions with clarity, confidence, and relative calm. And you need a bank partner who is there to assist you through the choppy waters. Your business objectives are our priority. Contact your Peoples State Bank commercial banker today.
Wisconsin Economic Development Corporation
Wausau Region Chamber of Commerce
Oneida County Economic Development Corporation
Rhinelander Chamber of Commerce
Vilas County Economic Development Corporation
Milwaukee Economic Development Corporation
Milwaukee County Economic Development Division
Metropolitan Milwaukee Association of Commerce
By continuing, you will be leaving the Peoples State Bank website.
Peoples State Bank is not responsible for accuracy, security, content, or services offered by other websites; we encourage you to view privacy & security disclosures of all websites you visit as they may be different than those of Peoples State Bank.
Visit our site again soon.