Paycheck Protection Program

Paycheck Protection Program

FirstCapital Bank of Texas will begin processing Paycheck Protection Program (PPP) loans for local businesses as soon as new guidelines from the Small Business Administration (SBA) and United States Treasury are released.

For questions regarding PPP loans, please review our FAQ below or click here to visit SBA’s website.

* Please note that all PPP loans are subject to final approval by the SBA and the borrower certifying they have met all the SBA conditions and requirements.

Paycheck Protection Program

What is the Paycheck Protection Program (PPP)?

The Paycheck Protection Program (PPP) is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating lenders, including FirstCapital Bank of Texas, must follow.

Who qualifies for a PPP loan?

Qualifying First-Draw Loan Applicants may include small entities, that together with their affiliates (if applicable), have 500 or fewer employees – including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors – can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standards or SBA’s size standards for those particular industries can also apply.*

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

*Also eligible to apply for First Draw PPP Loans are businesses with a NAICS Code that begins with 72 (Accommodation and Food Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing cooperatives, 501©(6) organizations, or destination marketing organizations with no more than 300 employees.

When can I apply for a new PPP loan?

New legislation, signed into law on December 27, 2020, authorizes the SBA to approve PPP loans up to $284.5 billion in allocated PPP funding. We are waiting on guidance from the SBA on this new round of PPP lending and plan to reopen our application, for both new and “second draw” PPP loan customers the week of Jan. 11, 2021.

I have already received a First Draw PPP loan, am I eligible for a Second Draw PPP Loan?

Please note that we are not accepting applications to increase existing PPP loans. If you need additional PPP funds, we ask that you apply for a Second Draw Loan. A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.


I received my last PPP loan from a different financial institution, can I apply for this round with FirstCapital Bank of Texas?

Yes, you may apply for a PPP loan with FCB; however, per the SBA you will be required to provide FCB with information about your previous loan so that we can process your second draw.

What loan amount do I qualify for?

For first-draw loans, the Maximum Eligible Loan Amount (estimate) will be the lesser of:
• $10,000,000
• (Average Monthly Payroll x 2.5) + Outstanding EIDL, Net of Advance (if applicable)

For second-draw loans, the Maximum Eligible Loan Amount (estimate) will be the lesser of:
• $2,000,000
• (Average Monthly Payroll x 2.5) OR (Average Monthly Payroll x 3.5) for applicants with NAICS codes beginning with 72

This calculation, and the validation for its values, carries into all forms (2483, 2483-SD, 2484, and 2484-SD) as well as the SBA Lending module. A borrower/lender is allowed to enter a loan amount less than the max amount eligible. The amount will be rounded down where applicable, for example $15,000.375 will round to $15,000.37.

What documents are required to apply for a PPP loan?

Documentation must be sufficient to establish eligibility and to demonstrate the qualifying payroll amount, which may include payroll records, payroll tax filings, Form 1099-MISC, Schedule C or F, income and expenses from a sole proprietorship, or bank records.

Documentation for revenue reduction requirements may include relevant tax forms, including annual tax forms, or, if relevant tax
forms are not available, quarterly financial statements or bank statements

Documentation for self-employed borrowers must include the 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed. If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS. You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.

Will this loan be forgiven?

First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
• Employee and compensation levels are maintained;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.

Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
• Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.

How do I apply for a PPP loan?

If you are a current FCB customer, please contact your lender directly. If you are not an FCB customer, but have questions regarding the PPP loan program and becoming an FCB customer, please call 844.322.8392.

Does FirstCapital Bank of Texas disclose the names or other information of PPP borrowers? Was my name or information disclosed by the SBA-or will it be in the future?

FirstCapital Bank of Texas does not disclose the names or other information of those who receive PPP loans. For more information on the disclosure of names by the SBA, please visit the SBA’s website.