Updated May 21, 2021
PPP Update
Potential borrowers who are not currently M&F Bank customers will be required to establish an M&F deposit account prior to the application being processed. M&F Bank will accept applications from NC borrowers only.
Due to the time constraints and availability of funds, M&F Bank is only able to accept and process complete application packages from North Carolina borrowers only. If changes are made to the program, we will update our website to alert you.
Thank you for contacting M & F Bank for your PPP needs.
Paycheck Protection Program Round 2
As a part of the Consolidated Appropriations Act, 2021, Congress has approved a $900 billion COVID-19 relief package. Of that amount, $284 billion has been budgeted for round 2 of the Paycheck Protection Program (PPP).
What is included in the $284 billion?
● Additional funding for new PPP loans
● The ability to apply for a second PPP loan if a company can demonstrate a 25% or more decline in revenue for any quarter in 2020 as compared to the same quarter in 2019
● Eligibility for 501 (c)(6) not-for-profit organizations
● $15 billion for live venues, independent movie theatres, and cultural institutions
● $20 million for the Economic Injury Disaster Loan (EIDL) Program
What are the eligibility requirements?
● All small businesses (with some exceptions) with 500 or fewer employees or meet alternative size standards are eligible to apply for an initial PPP loan.
● Businesses applying for a second loan or a “PPP second draw” loan must:
(a) Employ not more than 300 employees
(b) Have used or will use the full amount of their first PPP
(c) Demonstrate a 25% or more decline in revenue for any quarter in 2020 as compared to the same quarter in 2019
(d) Second draw loan amounts may not exceed $2 million
● More detail on eligibility can be found here.
How do I have my PPP loan forgiven?
● Forgiveness applications for loans under $150,000 will be simplified to a one-page certification that includes a description of the number of employees the eligible recipient was able to retain because of the loan, the estimated total amount of the loan spent of payroll costs, and the total loan amount. It is recommended that all borrowers retain all employment records relevant to the forgiveness application and all other records related to the PPP and forgiveness application.
● For loans over $150,000, borrowers are required to complete SBA Form 3508 or a lender equivalent which is provided by the lender. In short, forgiveness may be granted to borrowers who have kept or rehired employees while also maintaining salary levels from before the pandemic. Borrowers may still be eligible for partial forgiveness if they do not meet all of these criteria. For instructions on how to complete the form and FAQs related to loan forgiveness, click here.
First Draw Borrowers
● SBA is reopening the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021.
● First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
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 percent of the proceeds are spent on payroll costs.
Reapplying and Loan Increases
Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.
How and When to Apply
Borrowers can apply for a First Draw PPP Loan until May 21, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.
Second Draw Borrowers
● The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
● Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Full Forgiveness Terms
Second 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 in the same manner as required for the First Draw PPP loan;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.
Targeted Eligibility
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
How and When to Apply
Borrowers can apply for a Second Draw PPP Loan until May 21, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.
Forms
First-Time PPP Borrowers
When you are ready to submit your application, please be certain you have included all items on the checklist. Only complete applications can be submitted. Once you have gathered all of your information and filled out your application completely, please send it your relationship manager or branch manager. If you are unsure about who your relationship or branch manager is, please send your application to sba@mfbonline.com.
