Payroll Protection Program and EIDL - First Utah Bank | Personal Banking | Business Banking | Treasury Management | Loans
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We are accepting new applications for the Paycheck Protection Program. If you are interested in applying for a PPP loan and you have not applied for a PPP loan at another financial institution, please complete and submit the information requested below.

If you have questions about the status of an application that you have already submitted, please email ppp@firstutahbank.com with the business name and date your application was submitted.

 

Small Business Loans

The Act provides for two lending programs for small- and medium-size businesses to obtain disaster relief and allows both programs to be used, though not for the same purpose.  There is the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program.  Please consult with your small business loan expert before entering into either of these arrangements.

EIDL Program

This program currently allows for emergency loans of up to $2M to assist companies affected by COVID-19. Visit https://covid19relief.sba.gov/#/ to apply. The Act would waive the requirement for personal guarantees on loans under $200K, it would waive the requirement that the borrower not be able to obtain credit elsewhere, and provide emergency grants of up to $10K within 3 days of the borrower filing an application, though the amount of the grant would reduce any loan forgiveness under the PPP. The Act also would streamline the loan application process.

Paycheck Protection Program

This lending program allows for some loan forgiveness.  Below are the details:

  • Applies to businesses with 500 or fewer employees, and certain affiliation rules apply to combine businesses with common ownership, though they are waived hotels and restaurant franchises. The borrower must have been in operation on 2/15/2020.
  • Loans will be made by banks and commercial lenders authorized to make SBA loans and the application period ends 6/30/2020.
  • The amount of the loan is limited to the lesser of (i) $10M or (ii) the borrower’s average total monthly “payroll costs” for the 1-year period ending on the date the loan is made multiplied by 2.5, plus any refinanced loan under the EIDL program obtained after 1/31/2020.
    • Payroll costs generally include employee salaries and tips, retirement benefits, severance payments, state and local taxes on employee compensation, but does not include compensation paid to employees and independent contractors in excess of $100,000/year, and amounts paid to persons who reside outside the US.
  • The loan proceeds may be used for payroll costs (as defined), employee benefits and commissions, interest payments on mortgages, rent, utilities, and interest on debt incurred before 2/15/2020.
  • Loan terms:
    • No collateral required.
    • Loan cannot be obtained if taxpayer also receives the employee retention tax credit (see summary above).
    • Interest rate of 1%
    • Term of 2 years
    • No interest or principal payments required for a period of 6 months (though interest will accrue from the day the loan is made)
    • Prepayment penalties are prohibited.
  • Borrower may apply for loan forgiveness in an amount equal to the cumulative amount of payroll costs (as defined), rent, utilities, and interest paid on mortgages during the 8 weeks after the loan is made. The amount forgiven is limited to the extent compensation and headcount are reduced relative to a base period, and any amount forgiven will not be taxable to the borrower (as it otherwise would have been).