Please ensure Javascript is enabled for purposes of website accessibility

The SouthStar Bank Harker Heights ATM is currently unavailable for customer use. Click HERE to find the closest surcharge-free ATM.

To learn more about our mobile app, online banking, and more, watch our video tutorials.

PPP Round 1: Loans for COVID-19 Payroll Assistance

What is the Paycheck Protection Program (PPP)?

Small Businesses on Main Street

Small Business in historic downtown community


The deadline to apply for the Paycheck Protection Program (PPP) Round 1 was August 8, 2020. Click here for more information on PPP Round 2, available through March 31, 2021.

The Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to small businesses who maintain payroll during the COVID-19 crisis. Funds may be used for employee payroll (including paid sick or medical leave), employee salaries, mortgage interest payments, rent and utilities.

Provides small businesses the opportunity to maintain workforce by providing funds for payroll, mortgage interest, rent and utilities

  • Interest rate is a flat 1.0% for a max 2-year term. However, full amount may be forgiven (see PPP Loan forgiveness below)
  • PPP loans are SBA loans, serviced through your local SBA lender – it is recommended to reach out to your primary bank or local lender first
  • Only one PPP loan can be taken out per business (not per individual)
  • Personal guarantees are not required

What does this mean for my business?

  • Businesses may qualify for forgivable loans in order to retain employees.
  • The SBA can provide up to $10 million OR 2.5 times the average monthly salary over the 1-year period before the loan – whichever is less
    • Each employee salary may not exceed $100k
  • These loans may be used for payroll costs (including benefits), interest on mortgage obligations (incurred before Feb. 15, 2020), rent (under lease agreements in force before Feb. 15, 2020) and utilities (for which service began before Feb. 15, 2020)
  • The first 6 months payment will be deferred, however, the loan will accrue interest

Who Qualifies for a PPP Loan?

Eligible businesses include nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors.

In addition, businesses should show documentation of:

  • Operation as of February 15, 2020 with paid employees or independent contractors
  • Necessity of loan to support ongoing operations
  • Funds will be used for payroll, mortgage obligations, rent or utilities

How Long will PPP Funding Take?

  • PPP applications will be accepted through your local lender and funding typically takes 2 days from receipt of completed application. Timeline is subject to change based on current volume.

How do I apply for a PPP Loan?

PPP applications will be accepted through your local lender beginning April 3, 2020.

The SBA is continuing to provide guidance to the banks. At this time, we recommend gathering the following:

  • Completed Paycheck Protection Program Application (SBA Form 2483)
  • 2019 IRS Quarterly 940, 941, or 944 payroll tax reports
  • Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the following information:
    1. Gross wages for each employee, including officer(s) if paid W-2 wages
    2. Paid time off for each employee
    3. Vacation pay for each employee
    4. Family medical leave pay for each employee
    5. Taxes assessed on an employee’s compensation
  • 1099s for independent contractors for 2019
  • Documentation showing total of all health insurance premiums paid by the company under a group health plan
  • Documentation of the sum of all retirement plan funding that was paid by the company
  • Completed trailing twelve-month payroll spreadsheet (download HERE)
  • Copy of current lease agreement
  • Copy of your most recent commercial mortgage statement
  • Copy of your most recent month’s utility statements (gas, electric, water)

To apply with SouthStar Bank, you may submit complete documentation as listed above directly to your local SouthStar Bank loan officer.[/vc_toggle]

PPP Loan Forgiveness

Full loan amounts are eligible for forgiveness if:

  • The loan proceeds are used to cover payroll costs, mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
  • Employee and compensation levels are maintained.
    • Reduction in employment or wages February 15-April 26, 2020 will not reduce the amount of loan forgiveness IF by June 30, 2020 the borrower has re-hired or restored wages

Payroll costs will be prioritized for loan forgiveness and are capped at $100,000 on an annualized basis for each employee. It is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. All loan payments will be deferred for 6 months.

If funds are used for expenses outside of loan terms, this amount will not be forgiven. Forgiveness will also not be granted if staff and payroll are not maintained. Forgiveness could be reduced if:

  • You decrease your number of full-time employees
  • You reduce salaries or wages by more than 25% for any employee who made less than $100k in 2019
  • You have not restored (by June 30, 2020) full-time employment and salary levels for any changes between Feb. 15 and Apr. 26, 2020.

It is highly recommended to open a separate account to deposit loan proceeds in order to show proof that funds are utilized appropriately. This will be crucial in documentation for forgiveness.

What other loan options are available?

How is my current SBA loan affected?

  • If you have a current SBA loan, you may apply for a 6-month deferral.
    • SBA 7(a) or Express Loan – contact your current SBA lender
    • 504 Loan – contact your Certified Development Company (CDC) representative


Your Preferred SBA Lender

PPP loans were specifically designed for the Coronavirus crisis. As a Preferred SBA Lender, our team is here to guide you through this unfamiliar process. Together with the Small Business Administration, our goal is to help you maintain valuable employees and put you in the strongest position possible for a thriving business future.


Alexis Michael

Senior Vice President / Regional Credit Manager / SBA Director

512.456.0035 |

NMLS# 790782


Amanda Aaron


Amanda Aaron

Vice President & Branch Executive

512.456.0035 |

NMLS# 1819235


Start typing and press Enter to search