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Midstates Bank

Paycheck Protection Program

Midstates Bank Receives Early Access to Paycheck Protection Funding; Application Process Now Open

Updated 1/14/2020

Midstates Bank is participating in the new round of  PPP funding. In round one, Midstates Bank helped more than 620 small businesses gain access to over $27 million of relief.  We have been working diligently to ensure our lenders make it easy for you to apply and secure your place in line for the next round of PPP.

 

Get Started

Here’s what you’ll need to be eligible for a PPP loan in the second round:

  • You must have been in operation as of 2-15-2020.
  • You must be able to demonstrate a 25% revenue reduction for any calendar quarter in 2020 as compared to the same quarter in 2019.  Acceptable documentation includes tax return filings, company financial statements or bank records. 
You do not need to be a current Midstates Bank customer to apply.
 

You will need to submit the loan application with supporting documentation to your local lender by March 31, 2021. Please review our FAQ prior to application submission.  


We are Here to Help

If you would like to let us know that you would be interested in applying for a PPP loan, please provide basic contact information and your business name through our online form. We will get back to you with additional information and next steps. There is no need for you to follow up, we will reach out to you.

Connect with us online



Frequently Asked Questions


Who is eligible to receive a PPP Loan?

Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients.

To be eligible for a first-draw PPP loan:
  • Your business has less than 500 full-time, part-time, or seasonal employees.
  • Your business was operational before February 15, 2020 and remains operational.
To be eligible for a second-draw PPP loan:
  • Your business has less than 300 full-time, part-time, or seasonal  employees; if you have multiple locations, you may not have more than 300 employees per location.
  • You are able to demonstrate a revenue reduction of at least 25% in the first, second, or third quarter of 2020 (when compared with the same quarter in 2019).
  • You have used or will use the full amount of the first-draw PPP.
  • Your business was operational before February 15, 2020 and remains operational.
Businesses eligible for first- and second-draw PPP loans include:
  • Sole proprietors
  • Independent contractors
  • Self-employed individuals
  • Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations)
  • Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
  • Faith-based organizations that have less than 150 employees
  • Housing cooperatives that employ less than 300 people
What has changed with round 2 of PPP?
Here’s PPP under the Consolidated Appropriations Act, 2021 at-a-glance:
  • $284 billion has been allocated to PPP (including $138 billion of unspent loans from the first round that were reinvested) and the program has been extended to March 31, 2021
  • Second-draw loans are available for businesses with under 300 employees
  • Businesses eligible for PPP loans has been expanded
  • Loan limitations have been expanded for certain businesses
  • Forgiveness for loans under $150K have a new, simplified one-page application
    • While expenses eligible for forgiveness still require a 60/40 split of payroll costs/other eligible expenses, group health insurance benefits are now included in payroll costs (and these entail life insurance, disability benefits, vision, and dental insurance)
  • Eligible expenses for forgiveness have been expanded (for first-draw loans that have not yet been forgiven and for second-draw loans)
  • Borrowers are allowed to choose a covered period that is any period of time between eight and 24 weeks
  • PPP funding includes dedicated set-asides for community lenders (CDFIs and MDIs) and business that operate in low-income areas
  • A clarification has been made indicating that interest rates on PPP loans are non-compounding and non-adjustable 
  • A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible
What are the PPP loan maximums and limitations?
First-draw PPP loan limitations:

The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:

  • 2.5 times the average monthly payroll costs and healthcare costs
  • $10 million

There may be exceptions to these limits for restaurants and other hospitality businesses.

Second-draw PPP loan limitations:

Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:

  • 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
  • 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS). (This is a list of hospitality and entertainment businesses like restaurants, hotels, and casinos; click the link to get the full list.)
  • $2 million

I wasn’t able to get a first-round PPP loan. Should I try for one in the second round?

Yes, as long as you are eligible and can adhere to the terms of the loan. With the creation of the new bill, Congress has set aside allocations for community lenders and institutions that can help smaller businesses, businesses owned by POC, and those who operate in lower-income areas access capital. 

 

I returned part or all of my PPP loan. Can I apply for another PPP loan?

Yes. Within 17 days of the enactment of this bill, the SBA is required to release guidance to lenders on allowing borrowers who have returned loans to access PPP capital.


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