Paycheck Protection Program - Round 2

Thank you for your interest in applying for a Paycheck Protection Program (PPP) loan through Peoples Bank of Alabama. Please note that we will only be accepting applications for current customers or non-customers located within our bank footprint. 

To facilitate this round of funding, we have invested in a new online application portal which will allow the submission process to be applicant driven, providing a better user experience. All borrowers wishing to apply for a PPP loan through Peoples Bank of Alabama will need to first complete the Round 2 Application Request Form on this page.

After completing this contact form, a member of our team will send a unique link to the borrower via email to initiate the application process. Our goal is send out this unique link as soon as possible; however depending on demand, there may be a delay in sending. We ask that you please be patient with us and are looking forward to assisting you and your business.

Below is a brief overview of the Round 2 PPP process:

  • Borrower receives a link from Peoples Bank
  • Borrower creates a portal password to access the application
  • Borrower answers application questions and uploads any new documentation required
  • Borrower downloads two documents that must be eSigned:
    • The loan application
    • The borrower's form 2483 OR 2483-SD
  • Borrower submits the loan application
  • Peoples Bank reviews the application and obtains approval for the loan
  • Loan is submitted to the SBA for their review
  • SBA issues approval within 24 to 48 hours and issues a loan number
  • Peoples Bank creates loan documents and sends to the borrower for eSignature
  • Loan documents are returned to the bank for review and funding
  • Loan proceeds are disbursed to the borrower
Application Request Form

Paycheck Protection Program Round 2 Highlights

We can’t cover all the rules and guidelines for the new program but some of the highlights of the program are noted below for your review and your consideration.  These are the important things you need to know:

  • There are two PPP loan programs: 
    • The Second Draw PPP Borrower is a business that received a PPP loan in Round 1.  These borrowers may be existing PBAL customers but they also may be borrowers who got their first loan from another lender but decide to come to PBAL this time for their loan. The Second Draw PPP Borrower has a few limiting restrictions on eligibility:
      • 300 or fewer employees (last time it was 500 employees)
      • Proof that “gross receipts” fell at least 25% for 2020 as compared to 2019.  This can be in a single quarter-to-quarter comparison or can be for the year-to-year comparison. 
        • Important note:  For loan amounts greater than $150,000 the borrower will be required to submit the documentation supporting the 25% drop (tax forms, comparative financial statements or bank statements, etc.) at the time of application; however, for loans less than $150,000 the supporting documentation is required at the time of forgiveness request.  This is good for small loan amounts where the borrower may not have the documentation at hand to support the lower revenue – BUT, the borrower will be required to certify that they meet this eligibility condition at the time of application and must provide it later.  We do not encourage anyone to apply if they cannot document a 25% revenue reduction regardless of the loan amount.
      • Certification that all the first round PPP money has or will be spent on eligible costs prior to disbursement of Round 2 funds.
      • Note that the borrower does NOT have to already have requested forgiveness for the Round 1 money.
      • Maximum loan size is limited to $2,000,000 (last time it was $10,000,000).
    • The First Time PPP Borrower is a business that did not receive a PPP loan in Round 1.  The rules and processes for Round 1 applications apply only to these borrowers.    
      • All the original guidelines, IFRs and FAQs released by the SBA are available to guide these borrowers through the process of eligibility, application documentation and use of loan proceeds. 
      • The limiting rules that apply for Second Draw PPP borrowers do NOT apply to First Time PPP Borrowers.
      • A borrower must prove it was in operation on February 15, 2020 in order to be eligible for a loan.
  • The SBA expanded the list of eligible uses of loan proceeds (60% still must be spent on payroll costs) but the remaining 40% may be used for operation expenditures, property damage costs, supplier costs or worker protection expenditures.  See the SBA for more details on definitions of these eligible costs.
  • Restaurant and Hotel operators (including others that fall under the NAICS Code “72xxx”) are eligible for 3.5x their monthly payroll average rather than 2.5x the first time.