The PPP is a loan program managed by the Small Business Administration (SBA) and permits lenders) (including ChoiceOne Bank) to distribute PPP loans on behalf of the SBA to small businesses.

High Level Summary:

• $284 billion has been allocated to PPP (including $138 billion of unspent loans from the first round that were reinvested) and the program has been extended to March 31, 2021
• Second-draw loans are available for businesses with under 300 employees
• Businesses eligible for PPP loans has been changed
• Forgiveness for loans under $150K have a simplified application
• Eligible expenses for forgiveness have been expanded for first-draw loans that have not yet been forgiven and for second-draw loans.
  • Expenses eligible for forgiveness still require a 60/40 split of payroll costs/other eligible expenses, group health insurance benefits are now included in payroll costs (and these entail life insurance, disability benefits, vision, and dental insurance)
• Covered period that is any period of time between eight and 24 weeks
• A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible

Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients. Generally a borrower is eligible for a Second Draw PPP Loan only if it has 300 or fewer employees and experienced a revenue reduction in 2020 relative to 2019 (more details below)

Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:

• 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
• 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS). (This is a list of hospitality and entertainment businesses like restaurants, hotels, and casinos; click the link to get the full list.)
• $2 million

First Draw PPP loan terms (you don’t already have a PPP loan)

The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:

• 2.5 times the average monthly payroll costs and healthcare costs
• $10 million

In order for the loan to be eligible for forgiveness, the funds must be used within the covered period. If you have already received a PPP loan from the first round, nothing has changed. Your covered period remains the same.

If you are applying for a first- or second-draw PPP loan, you may choose a covered period that is anywhere from eight to 24 weeks after receiving the loan.

In order to get full or partial PPP loan forgiveness, it is critical that you spend the loan money on covered expenses.

Below is the full list of covered expenses for PPP. Certain items are covered for all PPP recipients, round 1 and round 2, but certain items are only covered for first-draw borrowers of PPP round 2, second-draw borrowers of PPP round 2, and borrowers of PPP round 1 whose loans have not yet been forgiven. We break these down in the tables below.

* These include salaries, wages, tips and commission, and are capped at a max of $15,385 within an eight-week covered period or capped at a max of $46,154 within a 24-week covered period for each employee.

**These are capped at eight weeks worth of the net profit earned in 2019—but not more than $15,385; or two and a half months worth of net profit earned in 2019—but not more than $20,833, depending on the covered period.

40% or less of the loan amount may be spent on:

* In order to qualify for forgiveness, you must keep records and documentation (including purchase orders and invoices) for these expenses.

Taxes and deductibility of forgiven PPP expenses

• The gross income a business is required to report will not include any PPP loan amount that is forgiven
• Any expenses paid for with PPP loan proceeds that are forgiven will be tax-deductible

Please read all instructions before proceeding:

Step 1. Please review the summary above and ensure your business is eligible for the 2^nd draw PPP loan.

Step 2.  Complete and sign the 2^nd Draw PPP Application

Step 3. Complete the 2^nd Draft PPP Intake Form and calculator

Step 4. Prepare the additional documents required to support your loan

Step 5. Upload and submit documents

Application Documents – All Customers

1. Signed PPP application – Download blank Second Draw PPP application 

This document is directly from the SBA and is required to begin the 2^nd draw PPP Loan Application Process.  This loan application comes with instructions and optional demographic survey.  Please read the instructions and attestations very carefully.

Please name your file: your-business-name-ppp2-application.pdf

Completion Tips:

• A authorized representative must initial and sign the document.  This is typically an owner of the business, but can also be the CEO, President, or CFO.
• All owners with 20% or more ownership must be listed.  If there are more than 2, please provide a separate sheet showing all owners.
• Read the instructions carefully regarding the reduction in Gross receipt (revenue).  If your loan request is under $150,000, you do not need to complete this section BUT you will be required to provide supporting documentation that your revenue decreased 25% when you apply for forgiveness.

Calculating your loan amount

• The loan is calculated using your average monthly payroll costs times 2.5 (or 3.5 for Hotels, Restaurants, and businesses with a 72 NAICS code.  There is a calculator provided below.
• You may use 2019 payroll information (same as your first PPP loan) or use 2020 information.  Documentation requirements are significantly less if you use 2019 information as we can use the supporting information provided for your first PPP loan.  Using 2020 information may result in a more time to process your application.

2. Completed PPP Intake and Loan Calculation form – Download blank 2nd DRAW – Intake Form

Please complete the highlighted fields.  This intake form is similar to the application and is designed to help us process your loan as efficiently as possible and calculates the amount of your loan request.

Please name your file: your-business-name-ppp2-intake.xlsx

Calculation and payroll support only apply if you are using 2020 information for your loan calculation.  If you are using 2019 (the same information as your first PPP loan with ChoiceOne Bank) you do not need to complete step 3)

3. Payroll Support

You must supply support for your payroll calculation if you are using 2020 information to calculate your loan amount.  If you used 2019 information (the same as your first PPP loan with ChoiceOne) you may skip this step.

Payroll Support varies by business but is typically the following:

3a. Payroll Tax Reports

Completed Payroll Tax reports filed (Forms 941, 940, State income & unemployment tax filing reports) for all of 2020.

Please name your file: your-business-name-payroll-tax.pdf

3b. Payroll Reports

Copies of payroll reports for YTD 2020.  Such reports should include gross wages including PTO (which might include vacation, sick, and other PTO). Please reconcile this (show your work) to the calculation including limiting compensation for employees over $100k.  As each business has different payroll reporting, it is important to provide us documentation that is clear.

Please name your file: your-business-name-payroll-report.pdf

3c. Health Insurance Premiums Report

Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for 2020. Copies of the monthly invoice are sufficient. ONLY INCLUDE IF YOU ARE USING THIS IN THE LOAN CALCULATION.

Please name your file: your-business-name-health-insurance.pdf

3d. Retirement Plan Funding Report

Documentation of all retirement plan funding by the employer for 2020. Copies of workpapers, schedules and remittances to the retirement plan administrator is sufficient. ONLY INCLUDE IF YOU ARE USING THIS IN THE LOAN CALCULATION.

Please name your file: your-business-name-retirement-plan.pdf

4. FOR LOANS OVER $150,000 – Support showing a reduction in revenue of 25% in 2020 (compared to 2019)

This is ONLY required if your loan request is over $150,000.  If your loan is below $150,000 you will be asked for this information at the time you apply for forgiveness!

Loans over $150,000 require the bank to review evidence that supports a 25% reduction in revenue in 2020 (compared to 2019). This can be for the entire year OR 1 quarter of 2020 (compared to the SAME quarter in 2019).

If your total 2020 total revenue was 25% lower than 2019 then supply:

1. 2019 Tax Return
2. Financial statements for 2019 and 2020
1. Summary report from your subledger (Quickbooks, etc.) for 2019 and 2020 (the total page is enough).  This is different for every business.  The intention is to show us the total revenue that you will report on your tax return for 2020.  NOTE: Your first PPP loan is NOT included in this amount.

If you are using 1 quarter of 2020 compared to 2019 (example 2^nd quarter 2020 vs. 2^nd quarter 2019)

1. 2019 Tax return
2. Management financial statements by quarter for each quarter of 2019 and 2020.
1. Specifically show us what quarter you are comparing and how the 2020 total compares to 2019
3. Summary report from your subledger (Quickbooks, etc.) for the quarter in 2019 and 2020 that you are comparing (the total page is enough).  This is different for every business and we recommend discussing questions with your CPA. NOTE: Your first PPP loan is NOT included in this amount.

Please name your file: your-business-name-revenue-support.pdf

5. Independent Contractors ONLY

If you are an Independent Contractor (you are paid via 1099 MISC) and are using 2020 payroll information to calculate your loan.  You may only claim up to $100,000 and must provide your 2020 1099-MISC documentation to support your calculation of 2020 average payroll (what you would report on your 2020 tax return).  If you are using 2019 information (same as your first PPP loan you do NOT need to attach this.   Payments to independent contractors are not eligible for this program.

INCLUDE IF YOU ARE USING 2020 INFORMATION IN THE LOAN CALCULATION.

Please name your file: your-business-name-1099.pdf

6. 2019 Schedule C for Sole Proprietors ONLY

Sole Proprietors are small businesses without incorporation who report income and pay taxes on a Schedule C in your personal tax return. If your business is a C CORP (Inc.) OR S CORP (LLC), you are NOT a Sole Proprietor and must follow the rules for a small business. Your business income must be reported on a Schedule C on your personal tax return. Your salary will be determined by your net profit. If you were operational in 2019 and have filed your 2019 taxes, this will be reported on line 31 of your Schedule C.  If you are using 2020 information for your 2^nd draw PPP loan we will need support for your 2020 amount you will report on line 31 of Schedule C of your 2020 tax return.  Consult with your CPA with questions.

You may only claim up to $100,000. ONLY INCLUDE SUPPORT IF YOU ARE USING 2020 INFORMATION IN THE LOAN CALCULATION.

Please name your file: your-business-name-Schedule-C.pdf

This section only applies to you if you did NOT receive a PPP loan in 2020 and are applying for a PPP loan for the first time. To apply for a PPP loan you will need to complete the application, calculate your loan amount, and provide supporting documentation for payroll.

Before starting, we STRONGLY recommend you familiarize yourself with the most recent guidance from the SBA.  This includes many FAQ’s and example calculations.  

Now that you have read the SBA guidance, please read all instructions before submitting your application:

Step 1. Please review the summary above and ensure your business is eligible for the first draw PPP loan.

Step 2.  Complete and sign the 1^st Draw PPP Application

Step 3. Complete the 1^st Draw PPP Intake Form and calculator

Step 4. Prepare the additional documents required to support your loan

Step 5. Upload and submit documents

Application Documents – All Customers

1. Signed PPP application – Download blank First Draw PPP application  

This document is directly from the SBA and is required to begin the first draw PPP Loan Application Process.  This loan application comes with instructions and optional demographic survey.  Please read the instructions and attestations very carefully. 

Please name your file: your-business-name-ppp1-application.pdf

Completion Tips:

• A authorized representative must initial and sign the document.  This is typically a owner of the business, but can also be the CEO, President, or CFO.
• All owners with 20% or more ownership must be listed.  If there are more than 2, please provide a separate sheet showing all owners.

Calculating your loan amount

• The loan is calculated using your average monthly payroll costs times 2.5 (if you are refinancing a EIDL loan, you may also add the outstanding balance and provide us with evidence of the loan balance)
• You may use 2019 OR 2020 payroll information to calculate your first draw PPP Loan.   You will need to provide ChoiceOne Bank documentation to support the payroll amount used in the loan calculation.

2. Completed PPP Intake and Calculation form – Download blank 1st DRAW – Intake Form

Please complete the highlighted fields. This intake form is similar to the application and is designed to help us process your loan as efficiently as possible and helps you calculate the amount of your loan request.

Please name your file: your-business-name-ppp1-intake.xlsx

3. Payroll Support

You must supply support for your payroll calculation for all first draw PPP loans.  Your documentation must match the year you are using in the calculation (2019 or 2020).

Payroll Support varies by business but is typically the following:

3a. Payroll Tax Reports

Completed Payroll Tax reports filed (Forms 941, 940, State income & unemployment tax filing reports) for all of 2019 or 2020.

Please name your file: your-business-name-payroll-tax.pdf

3b. Payroll Reports

Copies of payroll reports for full year 2019 or 2020.  Such reports should include gross wages including PTO (which might include vacation, sick, and other PTO). Please reconcile this (show your work) to the calculation including limiting compensation for employees over $100k.  As each business has different payroll reporting, it is important to provide us documentation that is clear.

Please name your file: your-business-name-payroll-report.pdf

3c. Health Insurance Premiums Report

Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for 2019 or 2020. Copies of the monthly invoice are sufficient. ONLY INCLUDE IF YOU ARE USING THIS IN THE LOAN CALCULATION.

Please name your file: your-business-name-health-insurance.pdf

3d. Retirement Plan Funding Report

Documentation of all retirement plan funding by the employer for 2019 or 2020. Copies of workpapers, schedules and remittances to the retirement plan administrator is sufficient. ONLY INCLUDE IF YOU ARE USING THIS IN THE LOAN CALCULATION.

Please name your file: your-business-name-retirement-plan.pdf

4. Independent Contractors ONLY

If you are an Independent Contractor (you are paid via 1099 MISC) and are using payroll information to calculate your loan.  You may only claim up to $100,000 and must provide your 2019 tax return or your 2020 1099-MISC documentation to support your calculation of 2020 average payroll (what you would report on your 2020 tax return).  Payments to independent contractors are not eligible for this program.

ONLY INCLUDE IF YOU ARE A INDEPENDENT CONTRACTOR

Please name your file: your-business-name-1099.pdf

5. 2019 Schedule C for Sole Proprietors ONLY

Sole Proprietors are small businesses without incorporation who report income and pay taxes on a Schedule C in your personal tax return. If your business is a C CORP (Inc.) OR S CORP (LLC), you are NOT a Sole Proprietor and must follow the rules for a small business. Your business income must be reported on a Schedule C on your personal tax return. Your salary will be determined by your net profit. If you were operational in 2019 and have filed your 2019 taxes, this will be reported on line 31 of your Schedule C.  If you are using 2020 information for your 2^nd draw PPP loan we will need support for your 2020 amount you will report on line 31 of Schedule C of your 2020 tax return.  Consult with your CPA with questions.

ONLY INCLUDE IF YOU ARE A SOLE PROPRIETOR

Please name your file: your-business-name-Schedule-C.pdf

Prepare ALL Files before proceeding

Watch this video before uploading:

Steps to Properly Submit Files:

1. Gather ALL documents, Please read ALL instructions and follow carefully.

2. Find your lender. Don’t have a lender? Upload to the bank.

3. Drag & Drop ALL required files. Make sure to upload all your files at the same time.

4. Press Upload. Don’t miss this step! We won’t see your files unless you upload them to us.

5. Your lender will contact you with any questions. For round 2 PPP the SBA Loan numbers will not be assigned the same day as the loan is submitted to the SBA. Please be patient as we process your loan and await the SBA to provide approval.

We accept only the following file-types: pdf, xls, xlsx, csv, doc, docx, rtf

Zip files are not accepted.

Find your Lender to begin upload:

Due to the volume of requests, this Paycheck Protection Program loan upload portal is exclusively for ChoiceOne Bank business customers. Applications from non-customers will be placed on a waiting list.

Don’t have a lender? Upload to ChoiceOne Bank and we will take care of it.

Upload to ChoiceOne Bank