COVID-19 Relief Deal FAQs

On December 27, 2020, a second round of COVID relief legislation was signed into law. The relief bill provides stimulus to individuals and businesses impacted by the COVID-19 pandemic.

Below are answers to frequently asked questions about the economic stimulus payments and the second round of the Small Business Administration’s Paycheck Protection Program (PPP) associated with this law.

Economic Stimulus Payments

Q: How will I receive my stimulus payment?
A. If you have filed your 2019 tax return, the stimulus payment will be direct deposited to the account you provided on your return. If you did not provide an account, you will receive a physical check mailed to the address on your return.

If you have not yet filed your 2019 tax return, the IRS will look at your 2018 tax return to see where to send the payment. The stimulus payment will be direct deposited to the account you provided on your 2018 return, or if you did not provide an account, you will receive a physical check mailed to the address on your return.

Q: When will I receive my payment?
A: Please visit the IRS Economic Impact Payment Web page and use the “Get My Payment Tool.” This will provide you with information on when and how you will receive your payment.

Q: My account is overdrawn, how will this impact my stimulus payment?
A: If your account is overdrawn, your stimulus payment direct deposit will be applied to your negative balance, and any remaining funds will be deposited as a positive balance into your account.

Q: I don’t currently have any accounts at Bar Harbor Bank & Trust, but my 2019 tax return (or 2018 and I haven’t filed for 2019 yet) has my old Bar Harbor Bank & Trust account information on it. What will happen to my economic impact payment?
A: If the account you provided to the IRS on your last tax return is no longer open, your direct deposit will be returned by the bank as “Account Closed.” We recommend reaching out to the IRS directly to discuss your options.

Q: Do I qualify for a stimulus payment?
A: Most Americans qualify for a stimulus payment. To be eligible, citizens must have a work-eligible Social Security Number and not be a dependent (or eligible to be a dependent) on any other taxpayer. For more information, visit www.irs.gov.

Q: Where can I find more information?
A: We recommend visiting www.irs.gov for more details.

Paycheck Protection Program (PPP)

Q: Does the new stimulus law include funding for more PPP loans?
A: Yes, the new stimulus law does include funding for more PPP loans.

Q: When can I apply for a PPP loan?
A: The SBA is not yet accepting loan applications. We are still waiting for guidance from the SBA about how the PPP will be administered. Please reach out to your Commercial Banker to let them know you would like to apply. They will then notify you when applications can be accepted.

Q: Will the new, re-established Paycheck Protection Program allow businesses that did NOT participate in the first round to obtain a “First Draw” PPP loan?
A: Yes, businesses that did not participate in the first round of PPP loans are allowed to apply, under very similar terms and conditions which were in place when the original PPP ended.

Q: Will the new, re-established Paycheck Protection Program allow businesses that DID participate in the first round to obtain a “Second Draw” PPP loan?
A: Yes, there is a provision in the new stimulus law which allows certain businesses to get a “Second Draw,” or second PPP loan.

Q: What is the eligibility criteria for a “Second Draw” PPP loan?
A: Although subject to additional guidance, here is what the law includes for “Second Draw” borrowers:

  • The program is only open to businesses with 300 employees or less.
  • The business will need to document a 25% or greater drop in revenues in any quarter of 2020 when compared to the same quarter in 2019.
  • The borrower must show they have used the full amount of their first PPP loan. (In our opinion, the best way to show this is to submit the forgiveness application for your first loan.)
  • Maximum loan amount is 2.5x the average monthly payroll based on the 2019 calendar year or a one-year lookback, capped at $2,000,000.
    • NAICS Code 72 Businesses (Accommodations and Food Services) can receive 3.5x average monthly payroll, capped at $2,000,000.

Q: Are “Second Draw” PPP loans forgivable?
A: Yes, “Second Draw” PPP loans may be entirely forgiven, if loan proceeds are spent on eligible expenses during the covered period.

Q: What are the eligible expenses for “First Draw” or “Second Draw” PPP loans?
A: The eligible expenses have been expanded, although we are still waiting on clarification here.

Q: What can I do while I am waiting to apply for my PPP loan?
A: Be patient. We will be in touch with additional information as it becomes available.

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