Paycheck Protection Program
Timberland Bank has a team dedicated to helping qualifying businesses obtain PPP loans. Please email our PPP team at sbaPPP@timberlandbank.com if you would like to apply for a PPP loan through Timberland Bank.
PPP funding is available for qualifying businesses through May 31, 2021, or until funding is exhausted.
In January 2021, the SBA reopened the PPP for first time borrowers as well as borrowers who participated in the initial round of PPP funding, offered from April, 2020 through August, 2020. If the following statements apply to you, you may be eligible to obtain a PPP loan for your business:
- Your business was in operation as of February 15, 2020.
- You operate as a corporation, LLC, sole proprietor, self-employed, or independent contractor.
- You employ fewer than 300 employees (per physical location).
- The gross receipts of your business have declined by at least 25% during any quarter in 2020 compared to the same quarter in 2019.
- You will use PPP funds for qualified expenses, like retaining workers, maintaining payroll, and/or making payments on recurring costs like mortgages, leases and utilities.
- If you would like to obtain a Second Draw PPP loan, you must have used, or intend to use, the full amount of your first PPP loan by the expected disbursement date of the Second Draw.
PPP loans are calculated based on 2.5 times your monthly payroll costs. Accommodation, food service and live event venues may be eligible for 3.5 times their average monthly payroll costs.
About the Forgiveness Process
If you receive a PPP loan through Timberland Bank, your first PPP payment will not be due until the SBA approves a forgiveness amount and Timberland receives the funds.
To receive forgiveness, PPP borrowers must spend at least 60% of the proceeds of the loan on payroll expenses and a maximum of 40% on other qualifying expenses. Payroll expenses may include wages, commissions, bonuses, health insurance, retirement, state and local taxes. The following expenses are also eligible for forgiveness:
- Payment for any software, cloud computing, and other human resources and accounting needs.
- Costs related to property damage due to public disturbances that occurred during 2020 which are not covered by insurance.
- Expenditures to a supplier in accordance with a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the borrower’s business.
- Personal protective equipment and other expenses that help the borrower comply with federal, State or local health and safety guidelines related to COVID-19.
Our PPP forgiveness team is here to help borrowers navigate the forgiveness process. If have already received a PPP loan through Timberland and you have questions regarding the forgiveness process, please email our forgiveness team at sbaPPPforgiveness@timberlandbank.com.