Paycheck Protection Program (PPP) Application


Old Point is proud to support our business community through the SBA's Paycheck Protection Program (PPP). As we demonstrated in the initial round of the PPP, Old Point is committed to securing funding vital to your company's health and success. 

The last day to apply for and receive a PPP loan in this next round of funding is March 31, 2021, and is subject to funds availability. We encourage borrowers to apply as soon as they are able to allow for application processing time and because funding may run out before this date. Please continue to check our website for updated information.

UPDATE: While Old Point is accepting PPP loan applications for all eligible businesses, the SBA is only approving applications for those with fewer than 20 employees from February 24th through March 10th. Applications for businesses with 20 or more employees will be held and then submitted once the SBA resumes accepting these applications. Details about this legislative change can be found on the SBA website here.

To access our online portal to submit your PPP application, please click the "Continue to Application" button below.


Two kinds of PPP loans available:

  • First Draw PPP loans: for businesses who have not received any PPP funding so far
  • Second Draw PPP loans: for the hardest-hit small businesses who have already spent their first PPP loan and still need more help

PPP Loan Application Checklist:

To ensure that we have everything we need to process your loan request, you need to gather and prepare the following required documents to upload. The completeness of your application will affect your placement and priority in our system.

  • Proof that business was in operation on February 15, 2020, such as payroll records, tax forms, financial statements and/or bank statements
  • 2019 Business or Personal Tax Returns, as applicable
  • Borrowing resolution listing the individual(s) that may enter into a loan agreement with the Bank, including the number of signers and the name(s) and title(s) of the authorized signer(s)
  • Beneficial ownership details for those owning 20% or more of the company. Form available here: Certification of Beneficial Ownership
  • Payroll documentation verifying the number of full-time equivalent employees and the payroll expenses for the qualifying base period.
  • Submission of information, supporting documentation, and certifications through Old Point National Bank’s application form, which will include information required on the relevant SBA application form (for First Draw or Second Draw Loans), customer identification information, and certain additional bank-specific questions
  • For Second Draw only: Documentation supporting a 25% or greater reduction in revenues

For more details and to help you prepare for the application process, we recommend you review the information on the SBA website. We have also provided FAQs and other helpful links below.


Important Application Portal Notes: 

  • Browser Recommendation: This site is best viewed in Chrome 60+ or Firefox 55+. If you have a problem loading the application page, clear your cache and reload the page. To do this in Windows, press the Ctrl and F5 keys at the same time. On a Mac, press the Command and Shift and R keys at the same time.
  • The application portal will ask you if you want to "Edit an Application" or "Apply for a New Loan". If you already have a first round PPP loan with Old Point and are applying for a Second Draw PPP loan, you will need to choose "Apply for a New Loan". You are not able to go back and edit your first round PPP loan application.
  • The online application portal only accepts one file in a PDF format and the document file size limit is 10MB. If you have multiple documents to upload, you will need to merge them into one PDF and then upload. (For example, if you have quarterly tax return forms, merge them into one single PDF file for uploading.) If you are not able to merge your documents into one PDF, then you will need to send an email to PPPapplicant@oldpoint.com requesting secure email access for sending your additional documents. Please include your name, the name of your business, and your application number.


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PPP Applicant FAQs:


What businesses, organizations, and individuals are eligible for a FIRST Draw PPP loan?  

In general, eligible small businesses can apply if they can demonstrate 500 or fewer employees together with their affiliates (if applicable), including:

  • 501(c)(3) nonprofit organizations
  • 501 (c)(19) veterans organizations
  • tribal business
  • self-employed individuals, sole proprietorships, and independent contractors
  • 501(c)(6) housing cooperatives
  • eligible destination marketing organizations that employ no more than 300 employees per location
  • businesses with NAICS codes beginning in 72—Accommodation and Food Services companies—or news organizations majority-owned or controlled by a NAICS 511110 or 5151 business or a nonprofit public broadcasting entity with a trade or business under NAICS 511110 or 5151 may qualify if they have not more than 500 employees per physical location.

Applicant business was in operation on February 15, 2020, and either had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099-MISC. For eligible self-employed individuals, independent contractors, or sole proprietorships with no employees, proof of paid operating expenses incurred on or prior to February 15, 2020 must be provided. Seasonal business will be considered to have been in operation as of February 15, 2020, if the business was in operation for any 12-week period between February 15, 2019, and February 15, 2020.

Businesses must submit documentation sufficient to establish eligibility and to demonstrate the qualifying payroll amount, which may include, as applicable, payroll records, payroll tax filings, Form 1099-MISC, Schedule C or F, income, and expenses from a sole proprietorship, or bank records.

What businesses, organizations, and individuals are eligible for a SECOND Draw PPP loan?  

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and has used the full amount only for authorized uses;
  • Was in operation on February 15, 2020, and has not permanently closed;
  • Has no more than 300 employees (or 300 employees per physical location for borrowers with NAICS codes beginning with 72—Accommodation and Food Services companies—and eligible news/broadcasting company majority-owned by a company with, or having a trade or business falling under, NAICS codes beginning with 511110 or 5151); and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. Borrowers who were in operation for all four quarters in 2019 will be found to meet the required revenue reduction if (i) it experienced a reduction in annual gross receipts of 25% or more in 2020 as compared to 2019 and (ii) Borrower submits copies of tax returns showing reduction.
What businesses, organizations, and individuals are ineligible? 
  • Not in operation on February 15, 2020 or have permanently shut down
  • Entity or owner that has delinquent federal debt or has defaulted on a federal debt in the last 7 years causing a loss to the government
  • Entity or owner who is a debtor in a bankruptcy
  • Recipients of a grant under the Shuttered Venue Operator Grant program and are applying for a Second Draw PPP loan
  • A partner in a partnership who is applying for yourself as a self-employed individual
  • A household employer
  • Publicly traded company
  • A seasonal business that was not in operation for any 12-week period between February 15, 2019 and February 15, 2020
  • Have not spent the full amount (including any increase) of the First Draw PPP loan on eligible expenses and are applying for a Second Draw PPP loan
  • Engaged primarily in certain political or lobbying activities or if you are a 501(c)(6) tax-exempt entity or a destination marking organization and are applying for a Second Draw PPP loan
  • Are organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong or have as a member of your board of directors, a person who is a resident of those regions, and you are applying for a Second Draw PPP loan
When will PPP applications be accepted?  

Old Point is expecting to open our online PPP application portal on our website on Saturday, January 16th to begin accepting both first and second draw loan applications. The SBA will begin accepting applications starting January 19th.

What are the PPP loan terms? 

The interest rate will be 100 basis points, or one percent, calculated on a non-compounding, non-adjustable basis and the maturity is five years.

The proceeds need to be used within the “loan forgiveness covered period”, which is the period beginning on the date the bank disburses the PPP loan and ending on any date selected by the borrower that occurs between 8 weeks after the date of disbursement and 24 weeks after the date of disbursement.

Will I need to make payments on my PPP loan? 

If you submit your loan forgiveness application within 10 months after the end of your loan forgiveness covered period, you will not have to make any payments of principal or interest on your loan before the date on which SBA remits the loan forgiveness amount to Old Point National Bank (or notifies us that no loan forgiveness is allowed).

Old Point National Bank will notify you of remittance by SBA of the loan forgiveness amount (or notify you that SBA determined that no loan forgiveness is allowed) and the date your first payment is due. Interest continues to accrue during the deferment period.

If you do not submit a loan forgiveness application within 10 months after the end of your loan forgiveness covered period, you must begin paying principal and interest after that period.

What will be required to apply? 

To ensure that we have everything we need to process your loan request, you need to gather and prepare the following required documents to upload. The completeness of your application will affect your placement and priority in our system.

  • Proof that business was in operation on February 15, 2020, such as payroll records, tax forms, financial statements, lease agreements, mortgage interest and/or bank statements.
  • 2019 Business or Personal Tax Returns, as applicable.
  • Borrowing resolution listing the individual(s) that may enter into a loan agreement with the Bank, including the number of signers and the name(s) and title(s) of the authorized signer(s)
  • Beneficial ownership details for those owning 20% or more of the company.
  • Payroll documentation verifying the number of full-time equivalent employees and the payroll expenses for the qualifying base period.
  • Submission of information, supporting documentation, and certifications through Old Point National Bank’s application form, which will include information required on the relevant SBA application form (for First Draw or Second Draw Loans), customer identification information, and certain additional bank-specific questions.
  • For Second Draw only: Documentation supporting a 25% or greater reduction in revenues
How much can be borrowed?  

For First Draw PPP Loans:

The maximum loan amount for First Draw PPP Loans is the lesser of $10 million or an amount that the borrower will calculate using a payroll-based formula. Businesses that are part of a single corporate group shall in no event receive more than $20,000,000 of First Draw PPP Loans in the aggregate. 

For Second Draw PPP Loans:

For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x the average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (assigned a NAICS code beginning with 72), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Businesses that are part of a single corporate group shall in no event receive more than $4,000,000 of Second Draw PPP Loans in the aggregate.

Other than for certain seasonal businesses or new businesses, the relevant time period for calculating a borrower’s payroll costs for a Second Draw PPP Loan is either the twelve-month period prior to when the loan is made, calendar year 2019, or calendar year 2020, at the applicant’s election.

How do I calculate the maximum amount I can borrow for a first draw PPP loan?  

The following methodology, which is one of the methodologies authorized by the Act, will be most useful for many applicants:

  • Step 1: Aggregate payroll costs from 2019 or 2020 for employees whose principal place of residence is the United States.
  • Step 2: Subtract any compensation paid to an employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred.
  • Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12).
  • Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5.
  • Step 5: If applicable, add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any EIDL COVID-19 “advance” (because it does not have to be repaid).


Slightly different calculations (primarily differing as to the documentation and treatment of eligible payroll costs) apply to independent contractors and self-employed individuals/sole proprietorships, partnerships, and farmers/ranchers.

What is included in payroll costs to determine the loan amount? 

Payroll costs consist of compensation to employees in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent; payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care or group life, disability, vision, or dental insurance, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation.

The Act expressly excludes the following:

  • Any compensation of an employee whose principal place of residence is outside of the United States;
  • The compensation of an individual employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred;
  • Federal employment taxes imposed or withheld during the applicable period, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and
  • Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116– 127).
How is the 25% revenue reduction calculated?  

A borrower must calculate this revenue reduction by comparing the borrower’s quarterly gross receipts for one quarter in 2020 with the borrower’s gross receipts for the corresponding quarter of 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 (assuming all other eligibility criteria are met).

  • $50,000 (2Q19 revenue) - $30,000 (2Q20 revenue) = $20,000 revenue reduction
  • $20,000 reduction ÷ $50,000 (2Q19 revenue) = 40% reduction

An applicant that was not in business during the first or second quarters of 2019, but was in business during the third and fourth quarter of 2019 may compare gross receipts during the third or fourth quarter of 2019 with any quarter in 2020; an applicant that was not in business during the first, second, or third quarters of 2019, but was in business during the fourth quarter of 2019 may compare the fourth quarter of 2019 with any quarter in 2020; and an applicant that was not in business during 2019, but was in operation on February 15, 2020 may compare the first quarter of 2020 with any other quarter in 2020.

Alternatively, a borrower that was in operation in all four quarters of 2019 is deemed to have experienced the required revenue reduction if it experienced a reduction in annual receipts of 25 percent or greater in 2020 compared to 2019.  The borrower will be required to submit copies of its annual tax forms substantiating the revenue decline.

Note that any forgiveness amount of a First Draw PPP Loan that a borrower received in 2020 is excluded from a borrower’s gross receipts.

How are "gross receipts" calculated?  

Gross receipts is the “total income” (or “gross income”) plus the “cost of goods sold.” These numbers can normally be found on the business’ IRS tax return forms.

Note that several items are excluded from these calculations including net capital gains or losses; taxes collected for and remitted to a taxing authority; proceeds from transactions between a concern and its domestic or foreign affiliates; amounts collected for another by an agent (travel, real estate, advertising, conference management service provider, freight forwarder or customs broker).

Gross receipts are calculated across affiliates unless the business is of a type for which affiliation rules are waived.

Am I required to provide my 2019 payroll details if my first loan was with Old Point?  

A review of the 2019 payroll details is required as part of a second draw application (or, at the applicant’s election, calendar year 2020 payroll details or payroll details for the last twelve months prior to application). Regardless of the applicant’s election, Old Point will require applicants to resubmit this information to help speed up the review process.

Does the First Draw PPP Loan need to be forgiven prior to applying for a Second Draw PPP Loan?  

There is no requirement that a first draw PPP loan must be forgiven before applying for, or receiving, a second draw PPP loan. First draw PPP recipients can take up to 10 months after finishing the covered period to submit the forgiveness application. However, borrowers will have to certify that their First Draw PPP Loan will or have used the full amount for authorized uses only.

Are Second Draw PPP Loans eligible for loan forgiveness?  

Second Draw PPP Loans are eligible for loan forgiveness on the same terms and conditions as First Draw PPP Loans. Second Draw PPP Loans may qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
  • The loan proceeds are spent on payroll costs and other eligible expenses;
  • And at least 60 percent of the proceeds are spent on payroll costs

SBA may provide further guidance, if needed, through SBA notices and a program guide which will be posted on SBA’s website at www.sba.gov.

What expenses will qualify for loan forgiveness?  

The proceeds of a PPP loan are to be used primarily to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations (the last of which includes certain business software and cloud computing expenses).

To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to non-payroll costs.

Can I change the requested loan amount after it has been submitted to Old Point National Bank?  

Clients can only apply once for the respective loan and cannot change their application once submitted.

Is it possible to make a loan modification to my existing PPP loan obtained in 2020? 

Based on the recent legislation, some existing PPP loans that were obtained in 2020 may be eligible for modifications to accommodate for changes in what expenses can be part of the loan, terms, and associated forgiveness. A borrower that returned all of the PPP loan may reapply. A borrower that returned part of a PPP loan may reapply for an amount equal to the difference between the amount retained and the original amount approved. A borrower that did not accept the full amount of the PPP loan for which it was approved, may request a PPP loan increase in an amount up to the original amount. 


 

If you have any questions, please reach out directly to your Branch Manager or Relationship Manager. If you aren't sure who to contact, you can call our Customer Service Center at 757.728.1290 or email PPPapplicant@oldpoint.com.