Paycheck Protection Program (PPP) | Lead Bank


Paycheck Protection Program Loan Forgiveness Application

  • What is included in the loan forgiveness?
    • Eligible expenses - Eligible expenses are those that are incurred over eight weeks, starting from the day the first payment was made from Lead Bank. This is not necessarily the date on which you signed your loan agreement.  You do not need to adjust your payroll schedule. All payroll that your employees incur over the 8 weeks is eligible, even if the actual payout date falls outside the eight weeks. 
    • Payroll expenses - At least 75% of your loan must be used for payroll costs. Payments to independent contractors cannot be included in the payroll costs. Your forgivable amount will scale in proportion to the amount you spend on payroll, up to the total loan amount.
    • Staffing requirements - You must maintain the number of employees on your payroll.  Employees who were laid off or put on furlough may not wish to be rehired onto payroll. If the employee rejects your re-employment offer, you may be allowed to exclude this employee when calculating forgiveness.
    • Pay requirements - You must maintain at least 75% of total salary.  This requirement will be individually assessed for every employee that did not receive more than $100,000 in annualized pay in 2019.  If the employee’s pay over the 8 weeks is less than 75% of the pay they received during the most recent quarter in which they were employed, the eligible amount for forgiveness will be reduced by the difference between their current pay and 75% of the original pay.
    • Rehiring grace period - You can rehire any staff that were laid off or put on furlough and reinstate any pay that was decreased by more than 25% to meet the requirements for forgiveness. You have until June 30th to do so. If your eight-week forgiveness period ends before June 30, you can still use the grace period if you reinstate headcount and/or pay. Just be sure to apply for forgiveness after June 30.
  • What are the measures of loan forgiveness?
    • Gives flexibility for businesses who received the loan in the middle of pay period since businesses are now able to use an "alternative payroll covered period" for those with a biweekly (or weekly) payroll schedule over the eight-week period, and can elect to calculate "eligible payroll costs" using the first pay period after they got the PPP funds, per the application.
    • Allows borrowers to include payroll and eligible non-payroll expenses that were incurred (not only paid) during the eight-week period after receiving the loan, so long as they're paid on or before the following regular payroll date.
    • Provides an exemption from the loan forgiveness reduction for borrowers if they have made "a good-faith, written offer to rehire workers that was declined"—calming some businesses’ fears about trying (and failing) to rehire employees in time to receive full forgiveness for the loan.
    • Includes clarity on how to calculate "full-time equivalents" for employees, which is key for the forgiveness side of the loans.
    • Read the full U.S. Department of the Treasury PPP loan forgiveness application news release including additional measures here.
  • How long will the process take? Loan forgiveness process could take up to 5 months. 
  • How to I apply for loan forgiveness?

  • On May 27, 2020 the House passed the Paycheck Protection Program Flexibility Act by 417-1, which attempts to ease restrictions on small businesses as they seek loan forgiveness under the Paycheck Protection Program authorized by the CARES Act.  Below are the PENDING provisions of this bill:
  • Potentially reduces the amount of the PPP loan to be spent on payroll from 75% to 60%, thus increasing the amount of funds available for other.
  • Potentially extends the window businesses have to use the funds from eight weeks to 24 weeks.
  • Potentially pushes back a June 30 deadline to rehire workers to December 31, 2020.
  • Potentially provides more leeway on loan forgiveness for business owners who show they could not rehire workers or reopen due to safety standards.
  • Potentially increases the amount of time recipients have to repay the loan.
  • Potentially allows companies that get loan forgiveness defer payroll taxes.

Paycheck Protection Program Loans

Your small business is important to you and to our communities. The Federal CARES Act is designed to support small businesses through this difficult time. The Paycheck Protection Program (PPP), signed into law on March 27, 2020, is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is nearly a $350 billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans, made by approved banks. The funding is meant to help retain workers, maintain payroll, and cover rent/mortgage/utility expenses. On April 24, 2020, President Trump signed an additional law providing another $484 billion stimulus package. This additional stimulus package includes an extra $310 billion of funding for the Paycheck Protection Program, which ran out earlier this month. This additional funding will allow small businesses previously unable to secure funds under the PPP an opportunity to obtain forgivable loans to keep employees on the payroll. 

How it works

  • Who’s eligible?  Small businesses including sole proprietors, independent contractors, self employed individuals, nonprofit organizations, tribal business concerns, and Veterans’ associations, that:
    • Employ 500 or fewer people except for in certain industries.
      • Click here for the applicable SBA employee-based size standards for those industries
    • Were in business on or before February 15, 2020.
    • Had employees to whom they paid salaries and for whom they paid payroll taxes.
    • Independent contractors, self employed.
    • You may review SBA business size and industry NAICS code standards that qualify a business for SBA programs here.

  • Who can make PPP loans?  Only SBA approved lenders, like Lead Bank, can offer these loans.


  • What does the loan cover?
    • Operating expenses, such as payroll, rent, lease payments, utilities, and mortgage interest obligations.
    • Payroll costs that may include wages, salaries, retirement contributions, healthcare benefits, insurance premiums, covered leave, and other expenses.
    • Interest on other debt obligations incurred before February 15, 2020.


  • How is the loan structured?  The amount of the unsecured loan can be 2.5x average monthly payroll (excluding independent contractors) up to a maximum of $10 million. No payments for first 6 to 12 months, loan forgiveness for qualifying expenses, and terms up to 10 years on remaining balance.

Paycheck Protection Program Loan Application

Before visiting our secure PPP application, gather your payroll documentation to calculate your average monthly average payroll costs. (More info on how to calculate payroll costs here).
What you need to apply for a SBA Paycheck Protection Program loan: (The following information will be required on the PPP application).
- Legal business name, address, and phone number
- Date business was first established
- Business tax identification or Social Security number
- Ownership type
- Number of owners
- Gross annual revenue
- Assertion that all applicants are a US citizen or permanent residence
- Payroll tax filings
- Payroll Tax form 941
- Form 1099-Misc if you are an independent contractor
- Income and expenses from a sole proprietorship
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