Paycheck Protection Loans
As part of the new CARES Act, Hawthorn Bank is an approved lender in the Paycheck Protection Program. Paycheck Protection loans are forgivable loans that allow business owners to continue paying their employees during the COVID-19 crisis. Small businesses may qualify for up to 8 weeks of payroll costs, including benefits.
Who Is Eligible?
Small businesses with 500 or fewer employees, including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors, are eligible. Businesses with more than 500 employees may be eligible in certain industries.
How Can Funds Be Used?
In order to be fully forgiven, at least 75% of the loan must be used for payroll costs, which includes employee benefits. Funds may also be used for mortgage interest, rent and utilities. Forgiveness is also dependent on the employer maintaining (or quickly rehiring) employees and maintaining salary levels.
How Do I Determine My Loan Amount?
Small businesses can apply for two and a half months of average monthly payroll expenses (calculated by taking the average monthly payroll cost from 2019 multiplied by 2.5). Businesses must exclude payroll that exceeds $100,000 per individual employee. For further details, see page 4 of the loan application.
How Do I Apply?
- Begin your application by clicking on Apply Now below.
- Complete the fillable application form and save the document to your computer or device.
- Select your region below. This will open an email directed to the lending office nearest you. Attach your completed application to the email before sending. You will receive a confirmation email once we have your application on file.
(If you prefer, you may fax your application to us. Regional fax numbers are listed on the application.)
If none of the above regions apply, please select the region nearest you.
What Happens Next?
Once you have submitted your application via email, you will receive a confirmation email. One of our experienced local lenders will be in touch with you to discuss your loan.
If you have further questions about the Paycheck Protection Program, see this helpful overview by the U.S. Department of the Treasury.