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PPP Administrated by Frost

Frost Bank - San Antonio, Texas

2021 Community Commitment Awards Submission

  • Entry Category: Community and Economic Development
  • Asset Size: Medium

In response to the COVID-19 pandemic, The CARES Act created a program to help small businesses bridge payroll expenses. Administered by the Small Business administration (SBA), the Paycheck Protection Program's (PPP) intent was to provide loans to businesses impacted by the challenging economic environment. Throughout the pandemic, the SBA provided two rounds of PPP loans with varying levels of eligibility for each draw.

Loans were used to help fund payroll costs and could also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damages and certain supplier costs and expenses for operations. In January 2021, the SBA announced a second draw PPP loan with the same general loan offerings as the first draw. However, it came with tighter eligibility requirements. Businesses were eligible for a second draw PPP loan if they had less than 300 employees and could demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020.

As a part of the program, borrowers can qualify for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities. Frost is currently working with small businesses to ensure the proper documentation is submitted. But the work of PPP doesn't stop at forgiveness. Frost sees this as an opportunity to continue engaging customers in other SBA programs as their businesses continue to grow or evolve.

While the PPP program is not unique to Frost Bank, Frost's innovative and personal approach to administering loans and their outstanding results showcase how the regional bank propelled Texas communities and economic development in the areas they serve.