PPP Loan Update

Now accepting applications for LNB Customers!

We encourage non-LNB customers to contact your banking institution.

01/13/2021 10:45am

LNB is now taking applications for the 3rd round of PPP Loans

Eligibility Requirements:

Applicants who did not receive a PPP loan in the first round and those that did are both eligible
Applicants must use all PPP funds from the 1st PPP loan and have submitted their forgiveness application prior to the disbursement of a 2nd draw PPP loan
2nd draw applicants must have no more than 300 employees (500 for 1st draw applicants)
Revenue reduction by 25% or greater in 2020 relative to 2019
In operation on February 15, 2020
Existing business or temporarily suspended

Revenue Reduction Calculation:

At least a 25% reduction in gross receipts for any quarter in 2020 compared to the same quarter in 2019 (Gross receipts: all revenue received or accrued during a quarter)

Example:

$100,000	2nd Quarter 2019
$75,000	2nd Quarter 2020
= 25% Reduction

Loan Calculation:

2.5 months of average monthly payroll costs
Exclude any employee compensation over $100,000 on an annualized basis
1st draw applicants can include any EIDL made between January 31, 2020 and April 3, 2020
2nd draw applicant maximum loan amount is $2 million ($10 million for 1st draw applicants)
Average monthly payroll costs may be based on 2020 or 2019
Seasonal – payroll costs incurred or paid for any 12-week period between 2/15/2019 and 2/15/2020

Covered Expenses:

Payroll Costs (At least 60% of the PPP loan must be used on these costs)	Interest payments on any other debt obligations incurred before 2/15/2020
Employer Paid Benefits	Refinance of SBA EIDL Loan
Mortgage Interest Payments	Covered Operation Expenditures
Rent & Utility Payments	Covered Property Damage Costs
Covered Supplier Costs	Covered Worker Protection Expenditures

Documentation:

Businesses:	-Tax Documents or Quarterly Financial Statements - Form 941s or equivalent payroll records - State quarterly wage unemployment tax reporting forms - Retirement, group health, life, disability,
Partnership:	See “Businesses” above, includes Form 1065 K-1s
Farmer/Rancher:	See “Businesses” above, includes Form 1040, Schedule F
Self-employed:	Form 1040 Schedule C & Form 1099-MISC (if applicable)

*Please refer to guidance issued by the SBA for further details.

This summary reflects our current understanding of the latest PPP legislation and official guidance. It is possible that future guidance from the government may revise or refine current rules, and we will update this information as appropriate.

12/28/2020 4:35pm

Round 3 Coming Soon!

Press Release:

RE: Lubbock National Bank announces plans to offer a 3rd round of PPP loans. New funding expands loans to hardest-hit small businesses and others

LUBBOCK – December 28, 2020 – Lubbock National Bank announced it will be ready to offer Paycheck Protection Program (PPP) loans as soon as the Treasury and the SBA release new guidance on the modified program. This 3rdround of PPP funding is a result of the recent relief bill signed by President Trump. The bank expects these funds to be available on January 8th or shortly thereafter.

“As the area’s first and largest PPP Lender, we stand ready to offer this new round of funding to businesses who need it now more than ever,” says Paul Dannevik, Senior Vice President for LNB. “These funds are critical to the survival of thousands of businesses affected by the pandemic.”

The final rules for this 3rd round of PPP loans have not yet been fully established, however the bank is aware of a few major differences. To qualify, a business must have less than 300 employees and show a reduction in revenue of 25% in any quarter this year. The loans are capped at $2 million. More types of expenses are allowed to be covered by the program as well. Plus, there will also be a simpler form for requests under $150,000. Please visit lubbocknational.com for more details and updates.

Additional industries including nonprofits are allowed in this new round of funding, with a focus on smaller businesses and those serving low-income areas.

“We will also be focusing our efforts on underserved and underbanked businesses and individuals in the area,” notes Dannevik. “These loans are meant for those most affected by the pandemic, no matter their size or location.”

Earlier this year, ANB and LNB (LNB is a branch of Amarillo National Bank) approved $478 million in loans to 2,200 small businesses in the panhandle and downstate markets saving over 40,000 jobs. The majority of the loans went to businesses with less than 50 employees and with average loan amount of $171,000.

More information coming soon. Please check here for updates.

12/03/2020 9:03am

We are here for small businesses!

It's time to prepare your application and documentation for submission for your Paycheck Protection Program (PPP) loan forgiveness.

You are eligible to submit the application as soon as you have depleted all of the funds.

Submit the Loan Forgiveness Form along with all supporting documentation
Contact your lender or give us a call at (800) 792-1000.

We hope this loan helped you through this uncertain time. Thank you for banking with us. We truly appreciate the relationship.

How do I apply for forgiveness?

If your loan is under $50,000, please fill out the Form 3508S
If your loan is over $50,000, please check your eligibility to use Form 3508EZ, if not, use Form 3508

Contact your lender at LNB, or call our main number at (806) 792-1000. We will then generate a link for you to begin your forgiveness application with supporting documentation. **

Good News!

In light of changes to the Paycheck Protection Program (PPP) implemented by the PPP Flexibility Act of 2020, we are extending the due date of the first payment on your PPP loan.

Accordingly, your first payment is not due until four months after the date shown on your promissory note. Monthly payments will continue from that point forward for any unforgiven amount.

If you have further questions, see the SBA's website for FAQ’s and more details