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The Paycheck Protection Program, created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is intended to financially assist Small Businesses during this pandemic crisis through a loan program administered by the federal government. 

The CARES act, which established the Payroll Protection Program (PPP), specifically states that it is for businesses that are “ADVERSELY IMPACTED” under the Coronavirus Disease 2019 (COVID-19) Emergency Declaration issued by President Trump on March 13, 2020.  YOUR BUSINESS MAY OR MAY NOT BE ELIGIBLE FOR THE LOAN OR THE POTENTIAL FORGIVENESS OF THE LOAN BASED ON THIS REQUIREMENT.

THE FREQUENTLY ASKED QUESTIONS published by the Small Business Administration, states the following for question 31 & 37.


Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application.  Although, the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.  For Example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.

Lenders may rely on a borrower’s certification regarding the necessity of the loan request.  Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. 


  • The loan can be used for payroll and benefits, interest payments on mortgages, rent payments, health insurance, and utility payments.
  • To qualify, companies and nonprofits must have fewer than 500 total employees, including all affiliates, subsidiaries, and companies under common ownership. Certain exceptions apply for small businesses in the foodservice sector, franchises, and SBIC-financed businesses.
  • A portion of the loan can be forgiven. Subject to certain restrictions, the portion of the loan eligible for forgiveness can include payments made during the eight-week period following your loan funding.
  • You can apply for both an Economic Injury Disaster Loan (through the SBA) and a Paycheck Protection Program Loan, but there may be no duplication in the use of funds.
  • The maximum loan amount is 2.5 times your average monthly payroll, up to $10 million.
  • The loan has a fixed interest rate of 1.0%.
  • These will be unsecured loans that do not require personal guarantees.
  • You may be able to defer payments up to 6 months.

An overview of the program can be found Here 

To apply for a Paycheck Protection Program Loan through Classic Bank, NA, you must have an existing Small Business or Personal account relationship with us that was open no later than February 15, 2020.

If you don’t meet the qualifications to apply through Classic Bank, NA, please contact your primary business lender or visit US Treasury Assistance for Small Businesses

Review the PPP Borrower Application Form and take note of the following dates: 

  • Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses.
  • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses.
  • Borrower completed SBA Paycheck Protection Program Application Form (SBA Form 2483).
  • Documentation of full-time equivalent employees as of 2/15/2020-payroll records for the period ending near 2/15/2020 should suffice for documentation.
  • Documented Payroll Costs for 2019 (for the full year) including:
    • IRS Form 941 for all four quarters of your 2019 payroll.
    • Health Insurance Premium information for 2019.
    • State & Local Payroll Taxes for 2019.
    • Retirement Plan contributions made in 2019.
    • Identify any employees that exceed an annual salary over $100,000 and the dollar amount each earns over $100,000.
    • Identify the compensation of any employee whose principal residence is outside of the United States.
    • Documentation of Economic Injury Disaster Loan (EIDL) if issued between January 31, 2020, and April 3, 2020 (to include the outstanding loan amount and the amount of any “advance”- the “advance” is the portion of the EIDL Loan which does not need to be paid back).
The SBA rules may continue to evolve, and we will provide updates on this site as they become available. *** EMAILING INFORMATION*** Please do not email any confidential information to us. To protect your privacy and financial information, please contact your Classic Bank, NA Loan Officer for details on sending a secure email.

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