Personal Banking

Paycheck Protection Program (PPP) Information

UPDATE AS OF 04/07/2020:

A letter from our President, Mr. J.H. Herlocker, III, regarding the status of our ability or process PPP loans:

I want to communicate to each of our business customers where our bank stands in regard to the Payroll Protection Plan (PPP). Many of you have already provided the bank with your application materials and we know you need the funds.

On Friday afternoon the Small Business Administration (SBA), the government agency in charge of the program, made available to banks the application to file for participation in the project.  As of today we are still waiting for approval of our application to participate in the program.   My guess is the SBA has been flooded with bank applications such as ours.  For banks that were already approved as SBA lenders the loan process has already started.  According to the news media, money is already flowing.   However, I talked to a business owner yesterday that applied Friday and he has still not been approved by the SBA.  His bank is ready but they have not received the go ahead.  Multiply this by thousands across the country and there is a definite bottleneck at the SBA.  Their system crashed yesterday for 4 hours.

To be fair to the SBA this was pushed on them by Congress without an understanding of the magnitude to how you implement a huge program.  But we can’t get a return phone call or return email from the SBA office in Dallas.  In the news media they say a loan is to be made by an insured bank like MCB.  However, we have to electronically submit the application for each loan and then receive approval from the SBA.   I am sure they are doing this to track the amount of funds available.

My guess is that the funds for this program will soon be exhausted.  The demand is high which will probably mean additional funds will be added.

With the delays in this process I am good if you want to go to a bank that has already been approved by the SBA.  We can’t go any faster than we are so I understand your concerns.  At some point we will be approved and able to submit your application and we can fund your loan.

I want to be transparent with each of you and the challenges we are facing with this program.  I think any of us could have designed a more efficient process but unfortunately it appears not a lot of thought was put into the process.

We are available for any questions you might have but this pretty much lets you know where we stand.  I will keep you updated as we go forward.  Thank you for your business!!


J. H. Herlocker, III

To view a copy of the application we submitted to the SBA, please click on the following attachment:  Lender Agreement.pdf 

UPDATE AS OF 04/06/2020:

Mineola Community Bank's application to become an approved SBA lender for the Paycheck Protection Program (PPP) has been received and is in the queue to be reviewed.  This gets us one step closer to being able to assist our customers with these loans that were specifically created to help small businesses during the pandemic.  We will continue to post updates as this process develops and we appreciate your patience as we work diligently towards being able to serve you.

UPDATE AS OF 04/03/2020:

The loan application process opened today for the Paycheck Protection Program (PPP) implemented by the federal government as part of the CARES Act. Mineola Community Bank is dedicated to doing everything possible to help our local businesses during the COVID-19 pandemic, which includes working in conjunction with the SBA to become an approved lender for this program. We are already accepting applications but as of 2:00pm on 04/03/2020, we have not been provided with the required documentation or guidance on how to proceed with funding the loans. As soon as the SBA makes the appropriate forms available to us regarding this program, we will be offering PPP loans to our existing customers. Your patience is greatly appreciated as we maneuver our way through this process and please rest assured we are doing everything possible to assist you. All updates regarding the status of our ability to process and fund PPP loans will be posted here on our website as well as on our Facebook page.

For more information regarding PPP loans, including loan terms and who is eligible to apply, please refer to the information provided below.

ORIGINAL POST 04/02/2020:


The Paycheck Protection Program ("PPP") authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.

The loan amounts will be forgiven as long as:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
  • Employee and compensation levels are maintained.

Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

Loan payments will be deferred for 6 months.

When can I apply?

Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

  • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. 
  • Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.

Where can I apply? You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. Visit for a list of SBA lenders.

Who can apply? All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click HERE for additional detail).

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.

What do I need to apply? You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020. Click HERE for the application.

What other documents will I need to include in my application? You will need to provide your lender with payroll documentation.

Do I need to first look for other funds before applying to this program? No. We are waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).

How long will this program last? Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.

How many loans can I take out under this program? Only one.

What can I use these loans for? You should use the proceeds from these loans on your:

  • Payroll costs, including benefits;
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020.

What counts as payroll costs? Payroll costs include:

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation; and
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

How large can my loan be? Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.

How much of my loan will be forgiven? You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

  • Number of Staff:  Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll:  Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring:  You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.

What is my interest rate? 1.00% fixed rate.

When do I need to start paying interest on my loan? All payments are deferred for 6 months; however, interest will continue to accrue over this period.

When is my loan due? In 2 years.

Can I pay my loan earlier than 2 years? Yes. There are no prepayment penalties or fees.

Do I need to pledge any collateral for these loans? No. No collateral is required.

Do I need to personally guarantee this loan? No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***

What do I need to certify? As part of your application, you need to certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
  • You have not and will not receive another loan under this program.
  • You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

Questions or Comments?

Contact us online or give your local bank a call.