Paycheck Protection Program (PPP)

A new round of small business relief and stimulus has been passed and signed into law, known as the Consolidated Appropriations Act, 2021 (CAA21) .The law includes several notable changes to the Paycheck Protection Program (PPP), including:

• New PPP loan originations for first-time borrowers
• Additional PPP loan funding (known as “2nd Draw Loans”) available to businesses who already secured a PPP loan in 2020
• A streamlined PPP Loan Forgiveness application process for loans of $150,000 and less

We are not yet accepting new applications for the new round of PPP funding. Once we have received the necessary guidance and instructions from the SBA we will provide our existing clients with the opportunity to apply for PPP Loans (an initial loan or a 2nd draw loan) and will be implementing the PPP Loan Forgiveness process changes. While some small community lenders did begin accepting new PPP loan applications on January 11, 2021, we expect that the majority of financial institutions (including Mechanics Bank) will not be able to accept applications until the week of January 18th (at the earliest).

Please visit us at www.MechanicsBank.com for program updates.

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