PPP Round 2 – Online Application Coming January 19, at 8 a.m.

Paycheck Protection Program (PPP) loans have been a welcome relief for small businesses across the country, and Frost was proud to do everything we could to help secure approximately $3.3 billion in loan approvals for more than 19,000 Texas businesses.

Recently enacted federal legislation has made $285 billion available to restart PPP. We are preparing to accept applications from our customers beginning at 8 a.m.Central Time on Tuesday, January 19. Frost is committed to helping your business secure funds before the March 31, 2021 deadline, and we generally try to do so on a first-come, first served basis. Please note, the PPP loan application portal can only be accessed from the most current version of Google Chrome. Please understand that the information below is intended as a summary; it is not comprehensive and is subject to change. Please consult your legal, financial and/or tax advisor(s) for further important details.

Highlights:
First Draw PPP Loan
Second Draw PPP Loan
  • Choose your Covered Period anywhere between eight and 24 weeks
  • Types of eligible businesses have been expanded
  • Allowable expenses have been expanded
  • Borrowers can request 2.5 times their average monthly payroll costs
  • Existing PPP loan borrowers may be eligible for a second draw PPP loan
  • Borrowers must have
    • Fewer than 300 employees (subject to certain conditions)
    • At least a 25% decrease in revenue
    • Used or will use the full amount of the first PPP loan
  • Choose your Covered Period anywhere between eight and 24 weeks
  • Allowable expenses have been expanded
  • Borrowers can request 2.5 times their average monthly payroll costs (or 3.5 times average monthly payroll costs for entities in industries assigned to NAICS code 72 (Accommodations and Food Services).
  • Maximum loan amount is $2 million

PPP Loan Rates and Terms
  • All PPP loans have a fixed interest rate of 1%. The new bill has clarified that the interest rate is non-compounding and non-adjustable for first- and second-draw loans.
  • The maturity of a PPP loan is five years.
  • The payment deferral period generally lasts until loan forgiveness is determined. Borrowers who fail to apply for loan forgiveness must start making payments within ten months of the last day of the Covered Period.

Key things to consider as you apply

Determine if your business is eligible


  • Businesses that were in operation on February 15, 2020 will be eligible for an initial PPP loan or a second draw loan.
  • Sole proprietors
  • Independent contractors
  • Self-employed individuals
  • Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations)
  • Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
  • Faith-based organizations that have less than 150 employees
  • Housing cooperatives that employ less than 300 people

  • Businesses that were not in operation on February 15, 2020 will not be eligible for an initial PPP loan or a second draw loan.
  • Lobbying organizations
  • Organizations involved in political activities or public policy
  • Lenders or financial services businesses
  • Cannabis businesses (or any other businesses that deal with products that are illegal at the federal level)
  • Household employers (such as those who employ housekeepers or nannies)
  • Businesses that have defaulted on SBA or federal loans
  • Any business that is at least 20% owned by someone who is currently incarcerated, on probation, on parole, or subject to an indictment
  • Any business that is at least 20% owned by someone who has been convicted of a felony within the last five years
  • Entities affiliated with the People’s Republic of China or Hong Kong or that have a member on their board of directors that is a resident of the People’s Republic of China
  • Registrants under the Foreign Agents Registration Act
  • Entities that have received or will receive a grant under the Shuttered Venue Operator Grant program

Become familiar with the application

We strongly recommend that you begin reviewing the version of the application and instructions that you are eligible to use and become familiar with them.

Gather required documents


C-Corporations or S-Corporations – with Employees

  1. Payroll reports for all four quarters of 2019 or 2020
    • Form 941
      OR
    • Third-party payroll report, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944
  2. Wage unemployment reports for all four quarters of 2019 or 2020
    • Unemployment insurance tax reports
      OR
    • Third-party payroll reports, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944
  3. A payroll statement establishing the customer was in operation and had employees by February 15, 2020
  4. Business Tax Return for 2019 or 2020
    • Form 1120 or 1120-S
      OR
    • Other documentation for any retirement or health insurance contributions included in your requested loan amount

S-Corporations – without Employees

  1. Form 1040 Schedule C or Schedule F for self-employed farmers filed or unfiled for 2019 or 2020
  2. Form 1099-MISC detailing nonemployee compensation received (box 7) for 2019 or 2020
  3. Invoice or bank statement establishing the customer is self-employed
  4. An invoice, bank statement or book of record establishing the customer was in operation by February 15, 2020

Follow the instructions that apply to your tax filing situations—for example, whether you file as a sole proprietor, partnership or corporation


Partnerships – without employees

  1. Form 1065, including Schedule K-1s, for 2019 or 2020
  2. Form 1065 for 2019 or 2020 or other documentation for any retirement or health insurance contributions included in your requested loan amount
  3. An invoice, business account bank statement or book of record establishing customer was in operation by February 15, 2020

Partnerships – with employees

  1. Form 1065, including Schedule K-1s, for 2019 or 2020
  2. Payroll reports for all four quarters of 2019 or 2020
    • Form 941
      OR
    • Third-party payroll report, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944
  3. Wage unemployment reports for all four quarters of 2019 or 2020
    • Unemployment insurance tax reports
      OR
    • Third-party payroll reports, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944 
  4. A payroll statement establishing the customer was in operation and had employees by February 15, 2020

Sole Proprietors, Independent Contractors and Self-Employed Individuals – without employees

  1. Form 1040 Schedule C or Schedule F for self-employed farmers filed or unfiled for 2019 or 2020
  2. Form 1099-MISC detailing nonemployee compensation received (box 7) for 2019 or 2020
  3. Invoice or bank statement establishing the customer is self-employed
  4. An invoice, bank statement or book of record establishing the customer was in operation by February 15, 2020

Sole Proprietors, Independent Contractors and Self-Employed Individuals – with employees

  1. Form 1040 Schedule C or Schedule F for self-employed farmers filed or unfiled for 2019 or 2020
  2. Payroll reports for all four quarters of 2019 or 2020
    • Form 941
      OR
    • Third-party payroll report, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944
  3. Wage unemployment reports for all four quarters of 2019 or 2020
    • Unemployment insurance tax reports
      OR
    • Third-party payroll reports, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944 
  4. A payroll statement establishing the customer was in operation and had employees by February 15, 2020

  1. Payroll reports for all four quarters of 2019 or 2020
    • Form 941
      OR
    • Third-party payroll report, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944
  2. Wage unemployment reports for all four quarters of 2019 or 2020
    • Unemployment insurance tax reports
      OR
    • Third-party payroll reports, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944 
  3. Form 990 Part IX for 2019 or 2020
    OR
    Other documentation for any retirement or health insurance contributions included in your requested loan amount
  4. A payroll statement establishing the customer was in operation and had employees by February 15, 2020

  1. Payroll reports for all four quarters of 2019 or 2020
    • Form 941
      OR
    • Third-party payroll report, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944
  2. Wage unemployment reports for all four quarters of 2019 or 2020
    • Unemployment insurance tax reports
      OR
    • Third-party payroll reports, including annual tax reports
      OR
    • Form W-2 for each employee, Form W-3 or Form 944
  3. A payroll statement establishing the customer was in operation and had employees by February 15, 2020