Help for Businesses and Non-Profits

We understand the large reaching impact the COVID-19 pandemic is having on our many small businesses and non-profits. As federal and state resources become available, know that we will work to communicate them to you.

Below are valuable resources that offer help to those impacted.

 

Paycheck Protection Loan Guide and Checklist

Notice: Smaller Businesses (fewer than 20 employees) are being given priority by the SBA until March 10, 2021. ChoiceOne Bank is still accepting applications for all businesses and will submit them to the SBA as soon as it is available.

The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. These loans have the ability to be forgiven by the SBA if used for qualified expenses.

SBA is currently offering:

Below is our best summary of the PPP Program. This is complex and final guidance will be determined by what is issued by the SBA.

ⓘ   Click the section headings below to expand or collapse the content.

PPP Round 2: Summary

The PPP is a loan program managed by the Small Business Administration (SBA) and permits lenders (including ChoiceOne Bank) to distribute PPP loans on behalf of the SBA to small businesses.

High Level Summary:

  • $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 changed
  • Forgiveness for loans under $150K have a simplified application
  • Eligible expenses for forgiveness have been expanded for first-draw loans that have not yet been forgiven and for second-draw loans.
    • 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)
  • Covered period that is any period of time between eight and 24 weeks
  • A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible
Am I eligible for PPP Round 2?

Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients. Generally a borrower is eligible for a Second Draw PPP Loan only if it has 300 or fewer employees and experienced a revenue reduction in 2020 relative to 2019 (more details below)

View More Details about PPP Round 2 Eligiblity

 

  • There is an exception for certain Hotel and Restaurants that increases employee number to 500. Affiliation rules also exist for more complicated business structures, we recommend reading the guidance if your business is larger than 300 employees.
  • Your Gross Revenue in 2020 is 25% lower than in 2019 (and can be substantiated on tax returns)
  • OR: You are able to demonstrate a revenue reduction of at least 25% in a single quarter of 2020 when compared with the same quarter in 2019.
    • For example, a borrower with gross receipts of $50,000 in the second quarter of 2019 and gross receipts of $30,000 in the second quarter of 2020 has experienced a revenue reduction of 40 percent between the quarters, and is therefore eligible for a Second Draw PPP loan.
    • PPP loan receipts/forgiveness is not counted in Revenue.
  • 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.

To be eligible for a first-draw PPP loan (You have not received a PPP Loan yet):

  • Your business has less than 500 full-time, part-time, or seasonal employees.
  • 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
  • Faith-based organizations that have less than 150 employees
  • Housing cooperatives that employ less than 300 people

The following businesses remain ineligible for PPP loans:

  • Lobbying organizations
  • Organizations involved in political activities or public policy
  • Lenders or financial services businesses
  • Cannabis businesses (or any other businesses that deal with products that are illegal at the federal level)
  • Household employers (such as those who employ housekeepers or nannies)
  • Businesses that have defaulted on SBA or federal loans
  • Any business that is at least 20% owned by someone who is currently incarcerated, on probation, on parole, or subject to an indictment
  • Any business that is at least 20% owned by someone who has been convicted of a felony within the last five years
  • Entities affiliated with the People’s Republic of China or Hong Kong or that have a member on their board of directors that is a resident of the People’s Republic of China
  • Registrants under the Foreign Agents Registration Act
  • Entities that have received or will receive a grant under the Shuttered Venue Operator Grant program
Second-draw PPP loan Details

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

First Draw PPP loan terms (you don’t already have a PPP loan)

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

 

The covered period and expenses

In order for the loan to be eligible for forgiveness, the funds must be used within the covered period. If you have already received a PPP loan from the first round, nothing has changed. Your covered period remains the same.

If you are applying for a first- or second-draw PPP loan, you may choose a covered period that is anywhere from eight to 24 weeks after receiving the loan.

In order to get full or partial PPP loan forgiveness, it is critical that you spend the loan money on covered expenses.

Below is the full list of covered expenses for PPP. Certain items are covered for all PPP recipients, round 1 and round 2, but certain items are only covered for first-draw borrowers of PPP round 2, second-draw borrowers of PPP round 2, and borrowers of PPP round 1 whose loans have not yet been forgiven. We break these down in the tables below.

 

First-draw borrowers of PPP Round 2

Second-draw borrowers of PPP Round 2

Borrowers of PPP Round 1; loans have not been forgiven

Borrowers of PPP Round 1; loans have been forgiven

Employee payroll costs*

x

x

x

x

Group health insurance payments

x

x

x

x

Dental and vision plans

x

x

x

x

Disability benefits

x

x

x

 

Life insurance 

x

x

x

 

Owner compensation costs**

x

x

x

x

* These include salaries, wages, tips and commission, and are capped at a max of $15,385 within an eight-week covered period or capped at a max of $46,154 within a 24-week covered period for each employee.

**These are capped at eight weeks worth of the net profit earned in 2019—but not more than $15,385; or two and a half months worth of net profit earned in 2019—but not more than $20,833, depending on the covered period.

 

40% or less of the loan amount may be spent on:

 

First-draw borrowers of PPP Round 2

Second-draw borrowers of PPP Round 2

Borrowers of PPP Round 1 whose loans have not yet been forgiven

Borrowers of PPP Round 1 whose loans have been forgiven

Paid time off and leave for employees

x

x

x

x

Pension and retirement plans

x

x

x

x

Federal income and FICA taxes

x

x

x

x

State unemployment insurance 

x

x

x

x

Utilities 

x

x

x

x

Rent

x

x

x

x

Interest on mortgage payments

x

x

x

x

Business software or cloud services that facilitate business operations

x

x

x

 

Costs related to property damage, vandalism or looting due to unrest that occurred in 2020

x

x

x

 

Supplier costs that are essential to the operations of the business 

x

x

x

 

PPE that help businesses comply with federal and state COVID-19 safety guidelines (like face masks) 

x

x

x

 

Measures that help businesses comply with federal and state COVID-19 safety guidelines (like plastic separators)

x

x

x

 

* In order to qualify for forgiveness, you must keep records and documentation (including purchase orders and invoices) for these expenses.

Taxes and deductibility of forgiven PPP expenses

  • The gross income a business is required to report will not include any PPP loan amount that is forgiven
  • Any expenses paid for with PPP loan proceeds that are forgiven will be tax-deductible
Common questions about PPP Round 2
What will PPP Round 2 loan forgiveness look like? When do I need to apply?

We are still waiting for instructions from the SBA on forgiveness for PPP round 2. We will update this page as the SBA releases information.

NOTE: Due to expected demand for PPP round 2, ChoiceOne Bank will only accept applications from current ChoiceOne Bank customers. If you are not yet a customer of ChoiceOne Bank, now is a great time to stop by one of our locations and open an account!

I wasn’t able to get a first-round PPP loan; should I try for one now?

Yes, as long as you are eligible and can adhere to the terms of the loan. We are still waiting for instructions from the SBA on applications for PPP round 2. We will update this page when the application is ready.

NOTE: Due to expected demand for PPP round 2, ChoiceOne Bank will only accept applications from current ChoiceOne Bank customers. If you are not yet a customer of ChoiceOne Bank, now is a great time to stop by one of our locations and open an account!

Is the PPP the only loan or funding option?

No. Both the CARES Act and the new bill offer have allocated money to a number of different loan and grant programs outside of PPP. If you do not qualify for PPP, you have other options to access capital. Use the COVID small business relief finder to find loans and grants.

 

Apply for A Paycheck Protection Loan with ChoiceOne Bank!

ChoiceOne Bank is ready to accept applications for Paycheck Protection Loans. Please read the criteria carefully and complete the form below to be connected with a ChoiceOne Bank lender who will walk you through the PPP Application process.

Note: Business must be located in Michigan and have an active (or open) a checking account with Choiceone bank to apply for a PPP Loan with ChoiceOne Bank.

 

SBA Coronavirus Relief Options

In addition to the Paycheck Protection Program (PPP) and traditional SBA funding programs, the CARES Act and subsequent legislation established several new temporary programs to address the COVID-19 outbreak

These programs are:

  • COVID-19 EIDL – This loan provides economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue.
  • SVO Grant Program – The Shuttered Venue Operators Grant Program provides emergency assistance for eligible venues.

To learn more about these programs, vist the SBA’s Coronavirus relief site linked below.

 

Michigan Economic Development Corporation

Michigan’s small businesses negatively impacted by the COVID-19 virus can now apply for the Michigan Small Business Relief Program. The program will provide grants and loans to provide economic assistance to Michigan’s small businesses. Grants will be administered by local and nonprofit economic development organizations (EDOs) around Michigan.

MEDC Resources

 

West Michigan COVID-19 Coalition

Leaders from Experience Grand Rapids, the Grand Rapids Chamber and The Right Place, Inc. convened the coalition aimed at making critical information more accessible to all area businesses and their employees. This website includes information on:

  • Legislation
  • Best Practices
  • Business Continuity
  • Organizations that can help
  • Employee Resources

West Michigan COVID-19 Business
Coalition

 

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What You Will Need Close Warning

Applying is fast and easy. Here’s what you’ll need to have ready:

  1. Your Social Security Number or Individual Tax Identification Number (ITIN)
  2. A US government-issued photo ID (e.g. Driver’s License, Passport, or State)
  3. A credit or debit card to fund your new account
  4. A valid email address

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial Banks to obtain, verify, and record information that identifies each person who opens an account.

What this means for you:
When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We must also ask to see your driver’s license or other identifying documents.

Online Applications are available for residents of our service area including Kent, Newaygo, Muskegon, Ottawa, Montcalm, Oceana, Osceola, Ionia, Mecosta, Lake, Allegan, and Barry Counties in Michigan.