New Market Bank has helped hundreds of small businesses in the south metro tap into the Small Business Association’s Paycheck Protection Program (PPP) since the program opened in April 2020. We welcome any eligible small business in the south metro to contact one of our commercial bankers to apply for a PPP loan. You do not need to be a small business banking customer to apply with New Market Bank, particularly if you’re in our service area of Scott, Dakota or Rice counties. You may also stop into our branches in Lakeville, Prior Lake or Elko New Market.
PPP loans used for eligible expenses (payroll, rent and utilities, mortgage interest, operational expenditures, etc.) may be 100% forgivable. Terms for loan amounts not forgiven are 1% interest for 5 years. You can choose a covered period of 8-24 weeks beginning on the date of origination. Once submitted to the SBA, approval is expected within 48 hours. Funds are generally dispersed within 10 days.
The Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act, signed into law December 27, 2020, included more funding for the SBA’s Paycheck Protection Program (PPP). The new funding is available to both first-time PPP borrowers and businesses that received a PPP loan previously.
- Eligible entities are those with 500 or few employees and include:
- For-profit businesses
- Nonprofit and veterans’ organizations
- Tribal business concerns
- Sole proprietorships
- Self-employed individuals and independent contractors
- Housing cooperatives
- 501(c)6 organizations
- Entities which devote 15% or more of their activities to lobbying or receive more than 15% of receipts/income from lobbying-related dues are NOT eligible.
- Eligible expenses have expanded from previous rounds of funding. While 60% of funds still need to be used on payroll, eligible expenses include:
- Mortgage interest
- Rent and utilities
- Operations Expenditures – Payments for business software or cloud-computing services, product or service delivery, processing/payment or tracking of payroll/HR/sales/billing functions, accounting expenses for tracking of supplies/inventory/records/expenses.
- Property Damage Costs – Costs not covered by insurance related to property damage due to public disturbances or riots occurring in 2020.
- Supplier Costs – Expenses for goods essential to operations and made pursuant to a contract.
- Worker Protection Costs – Operating or capital expenses to adapt business activities or facilities to comply with DHS, CDC or OSHA requirements for COVID-19.
- The only supporting documentation needed is 2019 or 2020 payroll data.
- To be eligible for a second-draw loan, you must first receive and use all the proceeds from your first PPP loan on eligible expenses.
- Eligibility for a second loan requires:
- 300 employees or less
- All funds from your first PPP loan must have been used - but not necessarily forgiven - for eligible expenses prior to receiving funds from a second loan.
- A reduction of at least 25% or more in gross receipts in any quarter of 2020 when compared to the same quarter in 2019. Regardless of the size of the loan, we will require tax returns for both 2019 and 2020, internally prepared income statements for the quarter or, if neither are available, bank statements from 2019 and 2020 for the quarter selected. This will help ensure forgiveness eligibility prior to application.
- Your first PPP loan number and amount are required for application. If you used us for your first PPP loan and forgiveness, you will receive a personalized email from Teslar with a link to your second-draw application. It will carry forward company information and previous loan details, simplifying your application process. Watch for that email; do not use the application link posted on our website. If you used a different lender, gather the loan number and amount from your previous application to proceed with our online application.
- Maximum loan amount is $2 million, which is based on 2.5 times the average monthly payroll, using either 2019 or 2020 payroll information. If you are a restaurant/hospitality business (NAICS code starting in 72), the calculated amount is 3.5 times the average monthly payroll.
To apply for a PPP loan:
- Gather your 2019 or 2020 payroll data. Second-draw applicants also need documentation of a decrease of 25% or more in gross receipts in any quarter of 2020 versus the same quarter of 2019 and your previous PPP loan number. To document the reduction in gross receipts, please include tax returns for both 2019 and 2020, internally prepared income statements for the quarter or, if neither are available, bank statements from 2019 and 2020 for the quarter selected.
- If you recieved a PPP loan from us in the first round, then please use the link that was emailed to you to complete your application.
- If you did not receive a PPP loan from us in the first round, then please contact one of our commercial bankers to have a link sent to you.
- Contact one of our commercial bankers with any questions.
- We are now accepting applications.
Once submitted to the SBA, approval is expected within 48 hours, however, could be up to 4 days. Funds are generally dispersed within 10 days. You will receive automated emails as your loan moves through the approval process.