You can apply for the Paycheck Protection Program (PPP) through Mid Penn Bank. We have developed a comprehensive application that is available for download here. We will be happy to help you with completing any areas of this application where you require assistance. Please call us at 717-914-6579.

You are eligible for a loan if you are a small business that employs 500 employees or fewer, or if your business is in an industry that has an employee-based size standard through SBA that is higher than 500 employees. In addition, if you are a restaurant, hotel, or a business that falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and Food Services,” and each of your locations has 500 employees or fewer, you are eligible. Tribal businesses, 501(c)(19) veteran organizations, and 501(c)(3) nonprofits, including religious organizations, will be eligible for the program. Nonprofit organizations are subject to SBA’s affiliation standards. Independently owned franchises with under 500 employees, who are approved by SBA, are also eligible. Eligible franchises can be found through SBA’s Franchise Directory.

Yes. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.

The amount any small business is eligible to borrow is limited to 250 percent of their average monthly payroll expenses, up to a total of $10 million. This amount is intended to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations.

Seasonal businesses, Independent Contractors and those that are self-employed need to follow the SBA’s Guidance for calculating the maximum loan amount.

Mid Penn Bank recommends that all applicants review the SBA Guidance on How to Calculate Loan Amounts prior to completing their PPP Loan Application.

https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf

The amount of principal that may be forgiven is equal to the sum of expenses for payroll, and existing interest payments on mortgages, rent payments, leases, fixed debt payments, and utilities. Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sick or medical leave, and group health insurance premiums. If you would like to use the Paycheck Protection Program for other working capital needs and business-related expenses, like inventory, you can, but that portion of the loan will not be forgiven.

The loan is forgiven at the end of the 8-week period after you take out the loan. You will work with us to verify and document covered expenses and the proper amount of forgiveness.

The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. You can choose which 8 weeks should count towards the covered period, which can start as early as February 15, 2020.

The purpose of the Paycheck Protection Program is to help you retain your employees, at their current base pay. If you keep all of your employees, the entirety of the loan will be forgiven. If you still lay off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If your total payroll expenses on workers making less than $100,000 annually decreases by more than 25 percent, loan forgiveness will be reduced by the same amount. If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30, 2020. Follow this link to the US Chamber of Commerce to read more about the forgiveness calculation.

No, if the full principal of the PPP loan is forgiven, you are not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate according to the loan terms outlined in your loan agreement. Your credit score will not be impacted.

The terms of the loan not forgiven may differ on a case-by-case basis. However, the maximum terms of the loan feature a 2-year term with interest capped at 1.0 percent and a 100 percent loan guarantee by the SBA. You will not have to pay any fees on the loan, and collateral requirements and personal guarantees are waived. Loan payments will be deferred for at least six months and up to one year starting at the origination of the loan.

You are eligible to apply for the PPP loan until June 30th, 2020.

Yes, you can take out a state bridge loan and still be eligible for the PPP loan.

Yes. If you received an EIDL loan related to COVID-19 between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.

Source: US Senate Committee on Small Business and Entrepreneurship