Paycheck Protection Program Loans

Paycheck Protection Program Loans

About the Paycheck Protection Program

The Paycheck Protection Program, part of the new Coronavirus Aid, Relief and Economic Security (CARES) Act, offers relief to businesses that need assistance due to the economic impact of COVID-19. The program provides low-interest loans to help small businesses cover expenses from February 15 through June 30, 2020. It is administered by the Small Business Administration (SBA) with support from the Department of the Treasury.

Who is Eligible?

Small businesses with 500 or fewer employees – including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.

Loan Forgiveness

Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months; however, interest will continue to accrue over this period. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.


No collateral or personal guarantees are required, and no fees or prepayment penalties will be charged. Money borrowed from the Paycheck Protection Program will have a 1.00% fixed interest rate and the loan repayment is due in two years. The maximum loan amount is $10 million and the size of the loan is based upon average monthly payroll.

Access the SBA's Interim Final Rule and other resources for the Paycheck Protection Program Here

Additional information and resources are available at and

How to Apply

As an existing SBA 7(a) lender and federally insured deposit institution, F&M Trust is participating in the Paycheck Protection Program. To ensure timely and efficient processing of your application, please review the application requirements for your entity type carefully.  

1. Complete the Paycheck Protection Program Application

2. Gather ALL the required documentation based upon your entity type and customer status as outlined below.
3. Upload the completed application and ALL required documents via our Secure File Transfer (please use 'PPP Loan' in the attention to field). 

* Please Note: In order to avoid a delay in the application process, it is important that the application is complete and is accompanied by the appropriate documentation. 

At F&M Trust, we are committed to meeting the needs of our communities.  In an effort to provide support and services for those who need it, F&M Trust will gladly accept and process applications from both current customers as well as entities within our trade area that we may not already have a relationship with.  Complete applications submitted with the proper supporting documents as outlined below will be processed in the order they were received.  Therefore it is imperative that applicants have the appropriate documentation to accompany the application.  

Required Documents

In addition to the Paycheck Protection Program Application form, please provide the following documents:
  • Copies of payroll tax reports filed with the IRS (including Forms 941, 940, state income and unemployment tax filing reports) for the entire year of 2019 and first quarter of 2020 (if available).
  • Copies of payroll reports for each pay period for the preceding 12 months. Such reports should include gross wages including PTO (which might include vacation, sick, and other PTO). This includes payroll reports through the pay period preceding the origination of the SBA loan.
  • Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for the immediately preceding 12 months prior to the date of the SBA loan origination. Copies of the monthly invoices are acceptable.
  • Documentation of all retirement plan funding by the employer for the immediately preceding 12 months. Copies of workpapers, schedules and remittances to the retirement plan administrator are acceptable.
  • Completed loan calculation spreadsheet.
  • Documentation for Relationship Establishment, if applicable (required for non-customer applicants). 

Additional Documentation Requirements for Relationship Establishment

For entities who currently DO NOT have accounts with F&M Trust, please see below for additional documentation requirements. To enable us to process your application, it is important the appropriate documents (as outline below) accompany your application.  

Business Entity Type Required Documents
Sole Proprietorship
  • Fictitious Name Registration (if applicable)
  • EIN Certification
  • Articles of incorporation or proof business is registered with state
  • Bylaws or Secretaries Certificate
  • Fictitious Name Registration (If applicable)
Nonprofit Corporation
  • EIN Certification
  • Articles of incorporation or proof business is registered with state
  • Operating agreement or bylaws
  • Letter of authority to open the account
  • EIN Certification
  • Operating agreement (if a sole member LLC, not required)
  • Certificate of organization or proof business is registered with state
  • Fictitious Name Registration (If applicable)
  • EIN Certification
  • Fictitious name registration
  • Partnership agreement
  • Certificate of Partnership – if a written agreement is filed with the state

Other SBA Relief Programs

EIDL Program

The Coronavirus Aid, Relief, and Economic Security (CARES) Act expands the Small Business Administration’s Economic Injury Disaster Loan Program (EIDL). Through the EIDL Program, the SBA can provide up to $2 million of financial assistance to small businesses or private, nonprofit organizations that suffer economic injury as a result of a declared disaster. These low-interest fixed-rate loans can be used to cover fixed debts, payroll, accounts payable and other bills that can’t be paid due to the disaster’s impact.

While small businesses may apply for both EIDL and Payroll Protection Program loans, they will only be eligible to receive a loan from one program.

You can learn more about the EIDL Program and apply for a disaster loan by visiting the SBA’s Disaster Loan Assistance website. Unlike a typical SBA loan or a Paycheck Protection Program loan, disaster loans are only available through the SBA rather than a bank or other lender.

Whether you are considering EIDL, Payroll Protection Program loans or other financing, F&M Trust stands ready to help you navigate this process. Please contact us if you have questions or need additional information.


You are now leaving the F&M Trust website. Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. F&M Trust neither endorses nor guarantees offerings of the third-party providers, nor is F&M Trust responsible for the security, content or availability of third-party sites, their partners or advertisers.