VEDA is now accepting PPP loan applications for both first time and second time PPP borrowers. Borrowers interested in a second draw, but who did not work with VEDA during the first round, are still welcome to apply with VEDA. The SBA will accept applications through March 31, 2021. Updated application forms are available below. 

If you are already a PPP borrower looking for loan forgiveness forms, please refer to the Loan Forgiveness Guidance section below.

 

2021 PPP Updates

More than $284 billion has been allocated to the SBA for first-time and second-time recipients of PPP forgivable loans. The new legislation also allows businesses to apply for both the PPP loan for payroll expenses and to take the Employer Retention Tax Credit (ERTC) on their IRS 941 for both 2020 and 2021. To learn more about this, reach out to your CPA or the IRS. 

First draw PPP Loan applicants:  The updated PPP program follows previous Cares Act loan size, loan rules and guidance with some nuances and an extension to the application period to March 31, 2021.

  • PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year prior to the loan or the calendar year, with a maximum loan amount of $10 million. 

Second draw PPP Loan applicants:  New in this legislation is the ability to apply for a second PPP loan in an amount up to 2.5 times the average monthly payroll, up to $2MM. PPP borrowers with NAICS codes starting with 72 (Accommodation & Food Services) can get up to 3.5 times their average monthly payroll costs. Eligibility for a second draw PPP loan includes businesses:

  • that have 300 or fewer employees;
  • that have used the full amount of their first PPP loan;
  • that can demonstrate a 25% gross revenue decline in any 2020 quarter compared to the same quarter in 2019.

With respect to loan forgiveness, there is a new forgiveness application for all loans of $150,000 or less and EIDL advances will no longer be deducted from PPP loan forgiveness amounts. For full program details, visit the SBA website

 

Application Process

We are now accepting applications. Please download the appropriate application package below and email the completed contents to your VEDA loan officer. To find your loan officer's contact information, visit our staff directory page

If you don't have a VEDA loan officer, please email ppp@veda.org or call (802) 828-5627 to begin the application process. Both the SBA and VEDA are committed to helping minority, underserved, veteran and women-owned businesses access PPP forgivable loans. 

 

  • First time PPP borrowers 
    • If this is your first time applying for a PPP loan, please download the below .zip file with SBA Form 2483. This package includes:
  • Second time PPP borrowers who are currently VEDA PPP borrowers
    • If you are already a VEDA PPP borrower, and this is your second PPP loan, please download the below .zip file with SBA Form 2483-SD. This package includes:
  • Second time PPP Borrowers who have not previously worked with VEDA
    • If you're NOT already a VEDA PPP borrower, and this is your second PPP loan, please download the below .zip file with SBA Form 2483-SD. This package includes:

 

Loan Forgiveness Guidance

The SBA has partnered with a financial services technology provider to make available a secure platform (the PPP Forgiveness Platform) for lenders like VEDA to use to submit forgiveness applications to the SBA. Below are the PPP Loan Forgiveness Applications and corresponding instructions from the SBA. 

There are three types of PPP Loan Forgiveness Applications Forms. Select the form that applies to your loan size and other criteria as described below:

 


Important Forgiveness Information

Supporting Documents

  • Note that the new 1-Page application (3508S) for loans of $150,000 or less does not require you to provide supporting documentation but does require you to save such documentation in case of review by the SBA.
  • 3508EZ and 3508 applicants:  VEDA cannot submit Forgiveness Applications to the SBA without including all required supporting documents from the Borrower.
    • For each use of the PPP loan funds listed (payroll, lease, mortgage, utilities, etc.), the Borrower will need to provide the appropriate supporting documentation. 
    • In addition to the required documents for the Forgiveness Application, there is a list of items Borrowers must maintain in a file (along with the Forgiveness Application) in case of review. 

Covered Period

  • If the loan was made prior to June 5th, Borrowers may use either an 8-week covered period or a 24-week covered period of their choosing.
  • If the loan was made June 5th or later, the Borrower has a 24-week covered period. 
  • Borrowers with a choice of covered periods should chose the one that gives them either full or more loan forgiveness; or easier forgiveness documentation.
  • Note:  Using the longer period may allow a Borrower to document the use of all the PPP funds for payroll rather than also including other eligible uses and avoid having to provide documentation for other uses.

Payroll

  • If the Borrower’s loan is fully forgiven based on payroll only, then only the payroll section of the Forgiveness Application needs to be completed, and only the payroll-based support documentation needs to be provided. 
  • If a loan can be fully forgiven by using payroll and only one of the non-payroll expense items, then only the payroll section and the one non-payroll item of the Forgiveness Application needs to be completed and documented. 
  • Please note if a loan is between $50,000 and $150,000 and has reductions in staffing and/or hourly rates, you may need to reduce the forgiveness amount per the instructions in the application form.

Timing

  • VEDA has 60 days after receiving a complete Forgiveness Application to submit it to the SBA but will endeavor to submit to the SBA as quickly as possible. 
  • The SBA has 90 days following the receipt of the Forgiveness Application to remit the Forgiveness amount with interest. 
  • VEDA will notify Borrowers of the SBA’s decision on Forgiveness and on the amount of funds received and applied to reduce your PPP loan. 
  • If there is a remaining balance, Borrowers can discuss plans for repayment with their VEDA loan officer.