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The recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act created the new Paycheck Protection Program (PPP) to help struggling small businesses impacted by the COVID-19 pandemic and has appropriated funds for this purpose. Community Bank of Raymore is committed to help provide businesses in our community understanding of this relief option. As some banks have chosen not to participate in the program, others will only accept applications from existing loan customers. We are willing to help any business seeking a loan under this program. This is a time when we all need to work together to keep our country and economy moving forward.

Forgivable SBA loans for eligible small businesses
to cover payroll costs and other operating expenses.


Small businesses with fewer than 500 employees are encouraged to quickly apply for the newly created Paycheck Protection Program, a loan that provides a direct incentive for small businesses that keep or quickly rehire employees, as well as for certain other expenses.

These loans provide up to 8 weeks of your payroll and benefit costs, plus an additional 25%. SBA will forgive
the loan if all employees are retained on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

At least 75% of the funds must be used for payroll. If you reduce the number of employees or have a reduction of more than 25% in wages paid to employees, the amount of loan forgiveness will be reduced. The loan forgiveness cannot exceed the principal and any accrued interest.

  • Here’s a quick look as some of the Small Business Administration program’s most important features.
    All small businesses with 500 or fewer employees are eligible - including nonprofits, 
  • self-employed individuals, sole proprietorships, and independent contractors.
  • Loans can be for up to 8 weeks of your average payroll and benefit costs from last year, plus an additional 25%. The amount is subject to a $10 million maximum and payroll costs will be capped at $100,000 annualized for each employee.
  • There is no collateral or personal guarantee required. No loan fees.
  • To apply for loan forgiveness, a borrower must send a request to its lender and provide the relevant documents to verify compliance of the conditions discussed above.
  • The loan will have an interest rate of 1 percent, a maturity of 2 years, and payments are deferred for six months, however interest will continue to accrue over this six-month period. If all requirements are met the loan will qualify to be forgiven. Terms of the loans are the same for all applicants.
  • Our team will work to approve these loan applications as quickly as possible following SBA eligibility guidelines.

Who Can Apply?

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veteran’s organizations, and Tribal Businesses described in the Small Business Act if they meet the SBA program size standards.

Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.

When can I apply?

Small businesses and sole proprietors should apply now since demand is high for the program. The program is being applied on a “first-come-first-served basis” and will terminate once the funds made available for the PPP are exhausted — so affected businesses should do their best to proceed quickly. Independent contractors and self-employed individuals can apply beginning April 10. This program will be available through June 30, depending on available funds.

What if I need to rehire employees to qualify for the PPP loan?

You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

What about the other relief programs under the CARES Act?

Borrowers may apply for other SBA financial assistance, including Economic Injury Disaster Loans, provided there is no duplication in the uses of funds. For example, if a borrower uses its PPP loan to pay the salary of certain employees in the 8-week period, it cannot use a different SBA loan to cover those same costs.

However, obtaining a loan under the PPP makes a business ineligible for certain other relief, such as the payroll tax relief that is otherwise available under the CARES Act.

Where can I find additional resources?

Details of the  Paycheck Protection Program are subject to change. For additional resources visit the SBA website.

What documents do I need for the loan application? 

A copy of the following documents, as applicable to your business:

  • PPP completed loan application
  • View the attached checklist for additional documents needed to apply. 
  • 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
  • Payroll reports (listing by employee; exclude any personal identifying information such as SSN or ID information) for the twelve-months of 2019 which will show the following information:
    • Gross wages for each employee, including officer(s) if paid W-2 wages
    • Paid time off for each employee
    • Vacation pay for each employee
    • Family medical leave pay for each employee
    • State and local taxes assessed on an employee’s compensation 
  • Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan for 2019. Include all employees and the company owners
  • Document the sum of all retirement plan funding that was paid by the company owner(s) for 2019 (do not include funding that came from employees out of their paycheck deferrals).
    • Include all employees and the company owners
    • Include 401K plans, Simple IRA, SEP IRA’s

Other notes:  If you are a seasonal employer, you may elect to provide the above information for the time period of February 15, 2019 through June 30, 2019.  If you are a new business, provide the above information for the time period of January 1, 2020 through February 29, 2020

Contact us today. Email us at [email protected] with questions. Our loan experts are ready to assist with your loan application.