American Bank understands that the initial funds appropriated by Congress for the Paycheck Protection Program (PPP) have been exhausted. Unless and until additional funds are appropriated by Congress, PPP funds will not be available for pending applications that have not been accepted or for any new applications. American Bank continues to accept and process applications for submission to SBA in anticipation of Congress appropriating additional funds for the PPP. American Bank makes no promise nor commitment that a loan will be made to your business or that any pending application will be accepted and funded.
Paycheck Protection Program Loan Information
Who Can Apply
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- Sole proprietors, independent contractors, and self-employed persons
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of 1%.
If you wish to begin preparing your application, you can download the application to see the information that will be requested from you when you apply with a lender.
In the event Congress appropriates additional funds for the PPP, American Bank anticipates that there will be high demand for PPP loans. In view of that anticipated demand, and in view of the qualification standards for the PPP, American Bank makes no promise nor commitment that a loan will be made to your business or that your application will be submitted to the SBA before additional PPP funds are depleted. American Bank will process applications consistent with criteria established by the SBA and American Bank, which may change at any time, without notice. If you are not a current borrower of American Bank, it may be most efficient for you to apply for a PPP loan through your existing lender.