Small Business Administration Paycheck Protection Program

Information current as of January 19, 2021

The Coronavirus Aid, Relief, and Economic Security Act established the Paycheck Protection Program (PPP), providing economic disaster relief to small businesses via the Small Business Administration (SBA). The program provides forgivable loans to businesses to cover payroll costs and other covered expenses. Sandy Spring Bank has helped more than 5,200 small businesses secure over $1.1 billion in PPP loans.

The pandemic relief package signed into law on December 27, 2020 provided $284.6 billion to the SBA to reopen the PPP. As a certified SBA lender, we’re preparing to help.

Who is eligible for funding from the second round of PPP?
Past PPP recipients are eligible for this next round of funding if they have less than 300 employees, had a revenue reduction of at least 25% between comparable quarters in 2019 and 2020 and have used or will use all of the funds they received from the first round. If the loan is for $150,000 or less, documentation of revenue reduction will not be required at the time of the application. Instead, borrowers can submit that information later.

If your first PPP loan is with Sandy Spring Bank and you are using the same time period to calculate the amount of your second PPP loan, you will not need to provide any additional payroll documentation.

How much money can I receive in the second round?
For most borrowers, the maximum loan amount of a second draw PPP loan is 2.5x average monthly 2019 or 2020 payroll costs, up to $2 million. For borrowers in the Accommodation and Food Services sector, the maximum loan amount for a second draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs, up to $2 million.

Can I apply for PPP through Sandy Spring Bank?
Due to the expected volume of requests, we will start by accepting applications only from Sandy Spring Bank business clients. If you received a first draw PPP loan from another bank, we recommend applying for a second draw PPP loan through that bank to facilitate the process and reduce required paperwork on your part.

When will Sandy Spring Bank begin accepting applications?
The SBA began accepting applications from Sandy Spring Bank on January 19.

When do I need to apply by?
The program will be open through March 31, 2021. Clients should submit applications to Sandy Spring at least a week before the program closes.

How do I apply?
We are contacting existing PPP borrowers with more information on the second draw via email. New PPP borrowers should contact their banker to express their interest.
Note: No PPP paper applications are being accepted at our branches.

I received a PPP loan at Sandy Spring Bank during the first round and want to apply for a second draw loan. How do I prepare?
Please review the following resources on the U.S. Department of Treasury’s website:

You may also wish to review our required documents checklist for second draw loans.

Can I still apply for forgiveness? 
At this time, Sandy Spring Bank’s priority is accepting applications for PPP loans. Any forgiveness application in queue will be processed, but we are not accepting new forgiveness applications at this time. We will update this site when we are able to accept new forgiveness applications. For more information on loan forgiveness, visit this page.

Do I need to apply for forgiveness before applying for a second round of PPP funding?
No, if you are an existing PPP borrower, you do not need to apply for forgiveness of your first round PPP loan before applying for a second round of funding. However, you must certify that you have spent all of the proceeds of your first draw PPP loan on payroll or other covered expenses, or will have spent the proceeds of your first draw loan before receiving your second round loan.

I’m a Sandy Spring Client and did not receive a PPP loan during the first round. Can I participate in PPP now?
You may be eligible for a first draw loan; to learn more, please review the following resources on the U.S. Department of Treasury’s website:

If you are interested in getting a PPP loan with Sandy Spring Bank, it’s recommended that you call or email your banker or call your local branch to indicate your interest. Your banker will be happy to assist. Given the anticipated volume of requests, please allow two to three business days for processing of your request for a digital application.

Is there a checklist that I can print and use as a reference in order to prepare for application?
Yes, you might find this first draw summary to be helpful.

Please continue to check this page for the latest updates. You may also visit or for more information, including the SBA's January 8 press release.

All PPP borrowers should read this important notice on self-certification of PPP eligibility.

PPP Repayment Guidelines
Earlier this year, the U.S. Congress revised the PPP so that borrowers are no longer required to begin repayment six months after the date of the loan.

Instead, monthly principal and interest payments will commence on the date on which the portion of the loan that is forgiven is transmitted to the lender. These changes are intended to give borrowers the opportunity to complete the forgiveness application process before any payments are due.

Once you receive your link to the Sandy Spring Bank digital PPP forgiveness application, you can complete your application for forgiveness of your PPP loan with us. We will then notify you when we receive the forgiveness amount from the Small Business Administration. If the forgiveness amount is less than 100% of the PPP loan balance, we will also inform you of the amount of your monthly payment and the date on which your monthly payments are due.

If you fail to apply for forgiveness of the PPP loan within ten (10) months after the last day of the 8- or 24-week covered period for using the PPP loan proceeds, you must begin making monthly principal and interest payments. In such event, the Bank will specify the date on which your monthly payments are due.

If you have additional questions that are not addressed here, please submit your inquiry using the below button.

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We want to work with you on ways to support your business during these uncertain times and encourage you to check back here regularly for helpful resources and important updates.

  • For information on other federal and state programs, click here.
  • Additional information from the Small Business Administration is available here. Resources from the U.S. Treasury Department are available here.
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