WE ARE NOW ACCEPTING PPP APPLICATIONS!
If you would like to apply for a PPP loan, please fill out the PPP Form below and a DSB representative will contact you as soon as possible.
In the first round of the Paycheck Protection Program, Denali State Bank helped more than 400 small businesses gain access to over $41 million of relief, and we’ve been working diligently to ensure that our processes make it easy for you to apply and secure your place in line for the next round of PPP.
Here's what you'll need to be eligible for a PPP loan in round 2:
- Employ fewer than 300 employees.
- Demonstrate at least a 25% reduction in gross receipts (to be defined by SBA) in any quarter of 2020 relative to the same quarter in 2019.
- For simplicity, businesses can now use annual tax returns for 2019 and 2020 to substantiate the 25% revenue reduction.
- Businesses can also compare any quarter in 2019 with the comparable quarter in 2020 which can be substantiated with quarterly financial statements.
Please see “PPP FAQ” below for commonly asked questions. If you require additional assistance, please do not hesitate to contact us at 907-458-4223 or [email protected]
*DSB is focused on serving the PPP needs of Alaskan businesses and will not be accepting applications from businesses located outside of the state of Alaska at this time.
What is new about round 2 of PPP?
Here’s PPP under the Consolidated Appropriations Act, 2021 at-a-glance:
- $284 billion has been allocated to PPP (including $138 billion of unspent loans from the first round that were reinvested) and the program has been extended to May 31, 2021
- Second-draw loans are available for businesses with under 300 employees
- Businesses eligible for PPP loans has been expanded
- Loan limitations have been expanded for certain businesses
- Forgiveness for loans under $150K have a new, simplified one-page application
- While expenses eligible for forgiveness still require a 60/40 split of payroll costs/other eligible expenses, group health insurance benefits are now included in payroll costs (and these entail life insurance, disability benefits, vision, and dental insurance)
- Eligible expenses for forgiveness have been expanded (for first-draw loans that have not yet been forgiven and for second-draw loans)
What are the PPP loan maximums and limitations?
1st Draw PPP loan limitations:
The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:
- 2.5 times the average monthly payroll costs and healthcare costs
- $10 million
There may be exceptions to these limits for restaurants and other hospitality businesses.
2nd Draw PPP loan limitations:
Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:
- 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
- 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS). (This is a list of hospitality and entertainment businesses like restaurants, hotels, and casinos; click the link to get the full list.)
- $2 million
What can my PPP loan funds be used for?
PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. At least 60% of the PPP loan proceeds should be used for payroll costs.
I returned part or all of my PPP loan. Can I apply for another PPP loan?
Yes. Within 17 days of the enactment of this bill, the SBA is required to release guidance to lenders on allowing borrowers who have returned loans to access PPP capital.
Have more questions?
Your “loan forgiveness covered period” is the period beginning on the date the lender disburses the PPP loan and ending on any date selected by the borrower that occurs during the period (i) beginning on the date that is 8 weeks after the date of disbursement and (ii) ending on the date that is 24 weeks after the date of disbursement.
If you do not submit a loan forgiveness application to Denali State Bank within 10 months after the end of your loan forgiveness covered period, you must begin making principal and interest payments. For example, if a borrower’s PPP loan is disbursed on January 25, 2021, the 24-week period ends on July 12, 2021. If the borrower does not submit a loan forgiveness application to its lender by May 12, 2022, the borrower must begin making payments on or after May 12, 2022.
For round 1 recipients, instructions on how to complete a loan forgiveness application have been sent to the current email address on file. If you have not received any emails, please check your junk/spam folder for correspondence from [email protected].