Parents in and around Greenbrier count on Kiddieville to care for their children while they work. But when the coronavirus hit last March, owner and First Service Bank customer, Diane Payton, wondered how long the childcare facility, now in its 40th year, would be able to hold on.
A call from First Service Bank loan officer, Robin Hackett provided the answer. Hackett took the time to call Payton to let her know she qualified for a Payment Protection Plan (PPP) loan. Then she spent the weekend helping Payton pull together the right documents to complete her application.
According to Rob Scott, a regional administrator for the Small Business Association, a properly completed application is crucial. “If you don’t have all your paperwork together and up-to-date when you file … including key documents like your latest tax records and average monthly payroll costs … then you may have your loan application rejected or delayed.”
Thanks to Hackett’s dedication walking Payton through the application process, Kiddieville received a much-need loan in a matter of days. Now that the second round of PPP has been available, Scott’s advice still applies.
First Service Bank Is Getting It Done
Remarkably during round one of loans, other banks around Arkansas were suggesting their customers call FSB for assistance with PPP loans. When Hope Mott, owner of Bean Barn Coffee Shop, approached her regular bank to ask about a PPP loan, they suggested she call First Service Bank because of our growing reputation for processing the applications quickly.
In fact, for round two of PPP, the federal government has initially given community banks including First Service Bank, the exclusive responsibility of facilitating PPP loans.
First Service loan officers are once again poised to make receiving their much-needed loans a painless and quick process – or as veterinarian, Dr. Kelly Fisher said of the last round, “Boom, boom, boom…they got it done.”
Two Types of Loan Draws to Know
Now that the new round of much-needed PPP loans area available, you’ll be hearing the terms, First Draw loans and Second Draw loans. Here’s what you need to know:
First Draw PPP loans of up to $10 million are for borrowers who did not receive a loan in the first round of the program, which ended Aug. 8, 2020. Second Draw loans are for eligible small businesses (300 employees or less) that received a loan in the first round but still need help. To qualify, you must demonstrate that your small business realized at least a 25% reduction in gross revenue between comparable quarters in 2019 and 2020. The maximum amount of a second draw loan is $2 million.
According to the SBA website, a borrower is generally eligible for a Second Draw if:
•Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
•Has no more than 300 employees; and
•Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
If you have questions about First Service Bank or the Payroll Protection Program (PPP) loan, speak with your loan officer or call us at 501-679-8000.