Information About the Paycheck Protection Program

The Paycheck Protection Program is implemented by the Small Business Administration support from the Department of the Treasury. Borrowers in this loan program are eligible for full forgiveness when certain criteria is met.

During the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.

Eligible Businesses – First Draw

Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply.

Also eligible to apply for First Draw PPP Loans in 2021 are businesses with a NAICS Code that begins with 72 (Accommodation and Food Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing cooperatives, 501(c)(6) organizations, or destination marketing organizations with no more than 300 employees.

To apply with Westamerica Bank, you must be a current business customer with a deposit account opened prior to January 1, 2021.

Eligible Businesses – Second Draw

A business entity is generally eligible for a Second Draw PPP Loan if the borrower:

  •  Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

To apply with Westamerica Bank, you must be a current business customer with a deposit account opened prior to January 1, 2021.

Loan Proceeds

Proceeds 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.

Submitting an Application

Applications can be submitted online at www.westamerica.com. We are unable to accept applications at a branch or via telephone.

Documentation required with an application

Documentation to establish eligibility includes: payroll processor records, payroll tax filings, or Form 1099- MISC, or income and expenses from a sole proprietorship. If you do not have any such documentation, you must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.

Loan Amounts

Each business is unique and your business situation will determine how much your business is eligible to borrower. The maximum loan size for First Draw PPP borrowers is generally the lesser of 2.5 times a business's average monthly 2019 or 2020 payroll costs, or $10 million.

For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs, up to $2 million. For borrowers in the Accommodation and Food Services sector, the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs, up to $2 million.

For detailed information, visit www.sba.gov or www.treasury.gov.

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