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The CARES Act

Small Business Guidance

PPP restrictions loosened and special application period for business under 20 employees announced...Learn More.
 

We’re Here to Help


Determining the most appropriate assistance program for your small business due to the impact of the
COVID-19 pandemic is one of the many challenges you face as a Small Business Owner. On December
21st, Congress approved a comprehensive bill as a provision related to the Paycheck Protection Program (PPP), and it is our intention to help you be prepared. The SBA has also extended the application deadline for their Economic Injury Disaster Loans (EIDL) Program until 12/31/2021.

Key PPP Updates
The new bill included the following expansions and changes:
  • Some 501(c)(6)s, destination marketing organizations (DMOs), housing cooperatives,
    newspapers, broadcasters, and radio stations are now eligible for funding
  • Expands list of eligible expenses to include covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance; covered supplier costs; and covered worker protection expenditures (PPE)
  • Forgiveness is simplified for loans under $150,000
  • Supplies tax relief for borrowers on forgiven PPP loans by allowing the deductibility of qualified expenses related to forgiveness and borrowers who received forgiveness or subsidy payments under the CARES Act. Taxpayers will receive non-taxable treatment without any restrictions on deductibility for expenses paid with program proceeds.

PPP Eligibility
For first-time borrowers, PPP loans will be available to businesses with 500 or fewer employees that
have not previously received a PPP loan to help with payroll, rent, utilities, healthcare costs, and more.
Second-time borrowers are generally eligible for a loan if the borrower:
  • Has no more than 300 employees
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses

See info on the right for access to PPP applications and helpful resources...


EIDL Updates
In addition to PPP, the SBA’s Economic Injury Disaster Loan (EIDL) Advance Grants for small businesses in low-income communities has been extended. PPP borrowers are no longer required to deduct the amount of their EIDL advance from their PPP forgiveness amount. This change is retroactive to the start of CARES and requires SBA to make borrowers whole if they have already received forgiveness and the EIDL Advance was deducted from that amount.
Applying for Assistance
Depending on which assistance package you ultimately select, the U.S. Small Business Administration (SBA) and/or VeraBank, N.A. will provide the conduit to receiving assistance funds. For more information, choose from the options below, or call us at 877-566-2621.

First-time PPP Borrowers


Second-time PPP Borrowers


Please submit your applications to ppp@verabank.com.

 
Helpful Resources
The Independent Bankers Association of Texas (IBAT) has provided a detailed summary of the Paycheck Protection Program updates.
 
For more details and information regarding SBA's assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares.

We will continue to communicate program updates as we get additional information on the program from the SBA. In the meantime, please contact your banker if you have questions or need more information.

This reflects the most current information available at this time. However, since the SBA guidance may update frequently, we encourage you to continue to monitor the SBA guidance releases for the most up-to-date information.
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