Hemp Businesses Are Eligible to Receive PPP Loans
With our commitment to the hemp industry and our expertise in SBA lending, we are proud to offer PPP loans to hemp businesses, both current clients and non-clients alike.
PPP loans are backed by the SBA and allow businesses to secure financing to cover payroll and other eligible costs as a result of the COVID-19 crisis. For most borrowers, the amount of a PPP loan is approximately equal to 2.5x the applicant’s average monthly payroll costs.
Information On PPP Loan Forgiveness
PPP loans may be partially or fully forgiven assuming the business that received the loan meets certain criteria. This criteria generally includes:
- Employee and compensation levels are maintained; and
- Loan proceeds are spent on payroll costs and other eligible expenses, such as employee benefits, mortgage interest, rent, utilities, worker protection due to COVID-19, looting or vandalism during 2020 and certain supplier costs and expenses for operations ; and
- At least 60% of the proceeds are spent on payroll costs
Once PPP loan proceeds are exhausted, the borrower may apply for forgiveness at any time within 10 months after the last day of the covered period. Visit the SBA’s website for more information on PPP Loan Forgiveness.
First Draw PPP Loan Eligibility
If your business did not receive a PPP loan in 2020, you may be eligible to receive a First Draw PPP Loan prior to the May 31, 2021 authorization deadline. The following entities may be eligible for a First Draw PPP Loan:
- Sole proprietors, independent contractors, and self-employed persons
- Any small business that meets either the SBA’s industry size standard or the alternative size standard
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern that employs fewer than 500 employees or otherwise meets the SBA’s industry size standard
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and less than 500 employees per location
Visit the SBA’s website for more information on PPP First Draw PPP Loans.
Second Draw PPP Loan Eligibility
One of the biggest changes with the reconstituted PPP is that Congress made funding available on January 13, 2021 to businesses that had previously received a PPP loan. If you already received a PPP loan in 2020, you may be eligible to receive a Second Draw PPP Loan of up to $2,000,000 prior to the May 31, 2021 authorization deadline. Below are the general requirements in place for businesses to receive a Second Draw PPP Loan:
- Used or will use the full amount of the First Draw PPP Loan on authorized proceeds; and
- Has 300 employees or less; and
- Has the ability to demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
If your business falls into this category, please visit the SBA’s website for more information on Second Draw PPP Loans.
West Town Bank & Trust PPP Loan Application for Hemp Businesses
If you are interested in applying for either a First Draw or Second Draw PPP Loan through West Town Bank & Trust, please complete the below form. Upon submitting this form, you will be redirected to a “Thank You” page which will include a link to begin your official PPP loan application through our online partner portal.