Coronavirus Aid, Relief, and Economic Security Act (Cares Relief Program)

Small Business Paycheck Protection Program (PPP)


January 11, 2021

The SBA has released the rules for the second round of the Paycheck Protection Program (PPP). The start date for the Second-Draw Program is Wednesday, January 13th.

We expect that the demand for this program will once again be very high. The Second-Draw loans require Borrower Application Form 2483-SD Revised 2.17.2021.

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

•       Previously received a First Draw PPP Loan and will or has used the full amount for authorized uses;
•       Has no more than 300 employees; and
•       Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. 

Documentation can include tax returns and/or internal financial reporting or bank statements.

Borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year, and no loan can be greater than $2 million. Entities in industries assigned to NAICS code 72 (Accommodation and Food Services) may receive loans of up to 3.5X average monthly payroll costs.  The methodology for calculating payroll is the same as in the initial PPP loan funding.  Borrowers can include base pay, health insurance, retirement contributions, etc., payroll costs.

We encourage you to visit the SBA website.  Remember, it is your obligation, as the borrower, to understand the SBA's rules.

We will continue to do our best to keep you up-to-date on any future changes to this important governmental loan program. If you have questions about any of the above, feel free to reach out to your First Liberty Bank lender.


December 28, 2020

On Monday, December 21st, Congress passed H.R. 133 which includes additional funding for the Paycheck Protection Program (PPP). The new law creates an opportunity for U.S. small businesses impacted by COVID-19 to apply for a PPP forgivable loan, including businesses that received a previous PPP loan.

It will likely take several days for the U.S. Small Business Administration (SBA) to issue the necessary guidance, rules, and official forms to process PPP applications. Until then, we are committed to keeping you informed of how best to apply for a PPP loan with First Liberty Bank.

We will keep you advised as we receive more information. As always, please feel free to reach out to your lender with any questions.


The following information is based on Paycheck Protection Program Loan Forgiveness legislation as of June 5, 2020, and is subject to change.

November 5, 2020

This is an update to notify PPP Loan Customers of an additional type of Loan Forgiveness Application, 3508S.  If you received a Paycheck Protection Program loan for $50,000 or less, your forgiveness process just got easier. The Small Business Administration (SBA) released PPP Loan Forgiveness Application Form 3508S which requires fewer calculations. Please review the PPP Loan Forgiveness Form 3508S Instructions.

If your loan amount was $50,000 or more, please see our update as of June 26th for 3508EZ and 3508 applications and instructions.

If you have any questions, don't hesitate to reach out to your First Liberty Bank lender.


June 26, 2020

This is an update from our prior email from May 27, 2020. In early June, Congress passed the PPP Flexibility Act. As a result, the SBA is making it easier for some businesses to request Paycheck Protection Program (PPP) Loan Forgiveness with both a new 3508EZ application form and a revised 3508. Highlights of the changes are detailed below.

The SBA published a new PPP Loan Forgiveness Application Form (3508EZ) for borrowers that:

  • Are self-employed and have no employees.
  • Did not reduce the salaries or wages of your employees by more than 25% and did not reduce the number or hours of your employees.
  • Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of your employees by more than 25%.
  • We recommend you review the SBA’s Application Instructions for Using SBA Form 3508EZ.  

Borrowers that don’t meet the 3508EZ criteria can use the updated PPP Loan Forgiveness Application Form 3508. Please review the Loan Forgiveness Application Instructions Form 3508.

Here are additional updates from the SBA that apply to both PPP Loan Forgiveness Application Forms:

  • You now have a 24-week Covered Period to spend loan funds starting the date loan funds were deposited into your business checking account. If you were funded prior to June 5, you can still use the 8-week period and the Alternative Payroll Covered Period.
  • You must use at least 60% of funds for eligible payroll costs to qualify for full Loan Forgiveness, down from 75%.
  • You can use up to 40% of funds for eligible non-payroll costs, up from 25%.
  • Forgiveness is not automatic; you must request it.
  • You will need to certify and document that you used the loan funds for SBA-eligible purposes.

It is your obligation, as the borrower, to understand the SBA's rules. Other eligibility requirements may apply.

We will continue to do our best to keep you up-to-date on any future changes to this very important governmental loan program. If you have questions about any of the above, feel free to reach out to your First Liberty Bank lender.

Thank you for placing your trust in First Liberty Bank to secure a loan under the Paycheck Protection Program. It is our honor to serve you and your business.