Additional Funding Approved | Applications Now Being Accepted
Update July 6, 2020
The Paycheck Protection Program resumed accepting applications July 6, 2020 in response to President signing the program's extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. If you've already submitted a PPP application with Midstates Bank, there's no need to reapply and we'll provide you with an update on your application as soon as possible.
Resources for you
As an SBA approved lender, we are here to guide and support you throughout the process. Please review our FAQ and check list documents below prior to application submission.
We're here to help
If your business has been impacted by COVID-19, let us partner with you. 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.
It's our honor to support small businesses
Interest in PPP loans has been extraordinary, both among our customers and local businesses. Since launching our PPP application process on April 3, the Midstates Bank team members have worked around the clock to process 575 loan applications with the SBA to reserve more than $27 million in funding for small businesses in need. We are proud to play a role in supporting our communities during this challenging time.
Frequently Asked Questions
We know you have questions. You've come to the right place.
What businesses are eligible?
Generally, eligible businesses are ones having up to 500 employees. They must have been in operation as of 2/15/20. These businesses include:
Traditional for-profit businesses
501(c)(3) non-profit organizations
501(c)(19) veteran organizations
Tribal business concerns described in section 31(b)(2)(C) of the Small Business Act
Sole-proprietors, independent contractors and other self-employed individuals
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
What is the maximum loan amount, and how is it calculated?
The maximum loan amount is $10MM and it is calculated as follows:
Loan Amount = Applicant’s average eligible monthly payroll expense x 2.5
Eligible payroll includes salaries, wages and cash tips (up to an annualized level of $100,000 for an individual employee). Eligible payroll also includes employee group health care benefits, insurance premiums and retirement contributions.
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How may the loan proceeds be used?
You should use the proceeds from these loans on your:
Payroll costs, including benefits;
Interest on mortgage obligations, incurred before February 15, 2020;
- Rent, under lease agreements in force before February 15, 2020; and
- Utilities, for which service began before February 15, 2020.
Will collateral or personal guarantees be required?
No, neither will be required.
Can the Economic Injury Disaster Loan ('EIDL') Program be used in conjunction with PPE?
Yes. An applicant may also receive assistance via the EIDL Program for virus-induced financial hardship, but the use of proceeds categories must differ. Example: If PPP funds are used to cover rent and utility expenses, funds from EIDL may not be used for same.
How much of the loan is forgiven?
The amount forgiven will equal the amount spent during the 8-week period after the note’s date on the following items:
Eligible Payroll Costs
Interest on commercial mortgages in place prior to February 15, 2020
Rent payments on lease obligations in place prior to February 15, 2020
Payments on utilities having service-commencement dates prior to February 15, 2020
You will also owe money if you do not maintain your staff and payroll.
Due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll
How does the debt forgiveness provision affect my tax planning?
Forgiven indebtedness resulting from the PPP will not be viewed by the IRS as taxable income.
How is the unforgiven debt handled?
Any loan amounts not forgiven will be carried forward as an ongoing loan with a 2-year term and a 1.00% interest rate. There will be no prepayment penalty.
What are the fees associated with this financing?
There will be no lender origination fees borne by the applicant, as SBA will pay these on their behalf.
When do I need to start paying interest on my loan?
All payments are deferred for 6 months; however, interest will continue to accrue over this period.