Paycheck Protection Program

Great news. The next round of Paycheck Protection Program (PPP) funding has been approved. First Internet Bank anticipates opening our application portal Tuesday, January 19, 2021 to begin accepting applications for first- and second-draw loans. We will communicate portal registration details through email. The portal will automate your application process.

The Small Business Administration (SBA) will begin accepting those applications on Tuesday, Jan. 19, 2021. Both the US Treasury and SBA indicate there will be enough funding to meet the demands of these applications.

Please Note: This morning, the Paycheck Protection Program (PPP) application window for forgivable loans opened for lenders with $1 billion or less in assets. Beginning Monday, January 11, PPP applications were accepted for specific funds designated to Community Development Financial Institutions (CDFI), Minority Depository Institutions (MDI), Community Development Corporations (CDC) and SBA Microlender Intermediaries.

If you choose to apply with us for this next round of funding and received your first-round PPP loan through First Internet Bank, you will not need to resubmit qualifying documentation. While the SBA continues to release program rules, guidance and forms, the following represents the most current details:

  • In general, first- and second-time PPP borrowers may receive a loan amount of up to 2.5x their average monthly payroll costs (with a cap of $100,000 annualized per employee) in 2019, 2020 or the year prior to the loan
  • PPP borrowers with North American Industry Classification System (NAICS) codes starting with 72 (such as hotels and restaurants) can receive up to 3.5x their average monthly payroll costs on second-draw loans
  • Loans are capped at $10 million for first-time borrowers and $2 million for second-time PPP borrowers
  • PPP first- and second-draw loans may qualify for forgiveness if funds are used for the following eligible costs: payroll, rent, covered mortgage interest, and utilities; covered worker protection/facility modification expenditures, property damage costs, supplier payments, business software or cloud computing services that facilitate business operations, product or service delivery and various back-office functions (including accounting)
  • To be eligible for full loan forgiveness, PPP borrowers must spend no less than 60% of funds on payroll over a covered period of their choice between eight and 24 weeks
  • Borrowers are eligible for a second-draw PPP loan of up to $2 million, provided they:
    • Have 300 or fewer employees
    • Used, or will use, the full amount of their first PPP loan on or before the expected date for the second PPP loan to be disbursed to the borrower
    • Experienced a revenue reduction of 25% or more in all or part of 2020, compared with all or part of 2019. This is calculated by comparing gross receipts in any 2020 quarter with an applicable quarter in 2019, or a reduction in annual receipts of 25% or greater in 2020, compared with 2019
  • First-time PPP loans are available to borrowers that were in operation on Feb. 15, 2020 and are from one of the following groups:
    • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
    • Sole proprietors, independent contractors and eligible self-employed individuals
    • Not-for-profits, including churches
    • Accommodation and food service operations with NAICS codes starting with 72 that have fewer than 500 employees per physical location
    • Sec. 501(c)(6) business leagues, such as chambers of commerce, visitors’ bureaus, etc. and “destination marketing organizations” that have 300 or fewer employees and do not receive more than 15% of receipts from lobbying. The lobbying activities must comprise no more than 15% of the organization’s total activities and have cost no more than $1 million during the most recent tax year that ended prior to Feb. 15, 2020
    • Sports leagues are not eligible
    • News organizations that are majority-owned or controlled by an NAICS code 511110 or 5151 business, or not-for-profit public broadcasting entities with a trade or business under NAICS code 511110 or 5151. The size limit for this category is no more than 500 employees per location

If you received your first-round PPP loan from First Internet Bank and have not already applied for forgiveness, there is additional good news!

  • PPP Loans under $150,000 will have a simplified forgiveness form process:
    • The form is slated to be published by January 20, 2021. We will inform you when we begin accepting the new form
  • Economic Injury Disaster Loan (EIDL) advances are no longer deducted from the forgiveness amount
  • Congress has clarified that forgiveness of PPP loans does not create taxable income for the borrower and confirmed that qualified expenses that result in PPP loan forgiveness are deductible

First Internet Bank is here to assist our customers who have been negatively impacted by the global pandemic. As changes to the PPP program continue to roll out, we will communicate with customers through email as well as our website. If you have questions, please contact our PPP Team at


The information provided on our website does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials that we may make available are for general informational purposes only. Information contained in this email or on our website may not constitute the most up-to-date information. Any content that we provide is “as is” and no representations are made that the content is error-free.