What you need to know about the Paycheck Protection Program

On March 31st, the Treasury Department provided updated information about this program. We encourage customers to visit the small business section of the Treasury Department CARES website (see link at right). We encourage you to be prepared so that you have what you need when we open our website for applications. Make sure you have the following information:

You must have a SYB Business Checking account as of February 15, 2020, and the following:

  • The date you started your business
  • Detailed information in order to calculate the average monthly payroll costs for your employees for the past 12 months, as outlined by the SBA
  • Your annual revenue
  • Your business mailing address


Here’s what you need to know about PPP loan forgiveness and how it works. This is based on the latest information from the Small Business Administration (SBA). Find the latest information at SBA.gov and Treasury.gov. Other eligibility requirements may apply.

  • Loan forgiveness is not automatic, you must request it. Forgiveness may be granted for some or all of the principal balance of the loan on eligible payments made within 8 weeks, from the date of loan disbursement (the date funds were deposited into your account). 
  • To be eligible to receive loan forgiveness, loan funds must be used for specified purposes, and at least 75% must be used for payroll costs, as defined by the SBA.  Not more than 25% of the loan forgiveness amount may be attributable for non-payroll costs.  
  • Generally, companies must maintain employee headcount and compensation levels during the 8 week period after loan disbursement.
  • The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount of these costs over the eight-week period following the date of the loan disbursement:
    • Payroll costs
    • Payments of interest on mortgage obligations incurred before February 15, 2020
    • Rent payments on leases dated before February 15, 2020 and
    • Utility payments under service agreements dated before February 15, 2020
  •  For full forgiveness:
    • Customers will need to provide documentation to Stock Yards Bank for all expenses for which they plan to request forgiveness.
  • Loan payments will be deferred for 6 months, but interest will continue to accrue – even if the loan is not forgiven, in part or in full. The borrower will be responsible under the loan for any amounts not forgiven.
  • You should review and modify any automatic payments like ACH and automatic debits for the account holding these loan proceeds.
  • The SBA may limit the timeframe by which you’ll need to ask for forgiveness.

It is your obligation, as the borrower, to understand the SBA's rules. 

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