CARES ACT and Paycheck Protection Program (PPP)

The Coronavirus Aid, Relief, and Economic Security Act (C.A.R.E.S Act) provided $350 Billion to support small businesses and keep workers employed during the pandemic economic downturn.   The Paycheck Protection Program provides eligible businesses impacted by COVID-19 to borrow up to $10MM in forgiveable loan and to cover payroll, interest, leases and utility expenses.   American Commercial Bank and Trust and First National Bank of Ottawa will be providing these loans through partnership with the Small Business Administration.


  • Borrowers must have been in operation as of February 15, 2020
  • Borrowers must have < 500 employees
  • Bororwers must meet SBA NAICS standards and size requirements
    • Have less than $15MM in Tanigible Net Worth AND less than $5MM in average net income in last 2 years
  • Borrowers can include sole propreitors, independent contractors, 501(c)3 with fewer than 500 employees
  • Exceptions will be made for Food Service/Hospitality businesses per physical location with less than 500 employees

Loan Certification Requirements:

  • Borrowers must make a good faith certification of the following:
    • Loan is necessary to support business operations as a result of the COVID-19 crisis
    • Proceeds will be utilized to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments
    • Have not received funds or have an application pending for duplicative loan purposes *

*Borrowers may apply for both PPP loan and other SBA assistance including EDILs, but funds CANNOT be used for same purposes.

Interest Rate/Fees/Guarantees/Collateral:

Interest Rate/Fees/Guarantees/Collateral:

  • Maximum Interest rate of 4%
  • No Personal Guarantee or Collateral Required
  • No Fee required
  • Balances remaining after forgiveness are subject to maximum 10 year maturity
  • Loan and interest payments are deferred for at least 6 months, but no more than 12 months


 How much Can Businesses Borrow?


Loan amounts can be 2.5x the Borrower's monthly included payroll costs

*For non-seasonal employees: 2.5x the average monthly payroll over the last year

*For seasonal employees: 2.5x the average monthly payroll for 12-week period starting either February 15, 2019 or March 1st, 2019

Loan Forgiveness:

Loans are eligible to be forgiven up to the pricipal balance on the loan

Forgiveness amount is a calculated by the sum of the following items over the 8 week period following the loan origination:

  • Payroll Costs (as defined under How Much Can Businesses Borrow)
  • Mortgage Interest
  • Lease Payments
  • Utility Payments

Forgiveness amount CAN be REDUCED:

  • REDUCTION IN EMPLOYEES- in the period from February 15, 2020 to June 20th, 2020 as compared to average monthly full-time employees from either February 15, 2019 to June 20th, 2019 or from January 1st, 2020 to February 29th, 2020 (Borrower choice)
  • REDUCTION IN WAGES-a reduction in wages beyond 25% for employees earning less than $100k per year occuring Feburary 15, 2020 to June 30th, 2020 relative to wage in 4th Quarter 2019

*Reduction in wages from February 15, 2020 restored by June 30, 2020 will not reduct Loan Forgiveness amount

*IF entire loan is forgiven-Borrower is NOT responsible for interest accured during period from loan origination to forgiveness


Application Checklist

While we wait for the SBA to provide a detailed application process and application checklist, American Commercial Bank and Trust has provide the below list of information businesses can begin to compile. Our understanding is the following information will be required:

  • Borrowing Entity Documentation
    • Articles of Incorporation/Organization for each Borrowing Entity
    • By Laws/Operating Agreements for each Borrowing Entity
    • Driver’s License for Each Owner
  • Payroll Documentation
    • IRS Quarterly 940, 941, or 944 payroll tax reports (2019)
    • Payroll reports for 12-month period ending on most recent payroll date-if not available employee pay stubs for February 15, 2020 (or corresponding period)
    • Corresponding Payroll Bank Statements
    • Breakdown of payroll benefits (vacation, paid leave, group health care, retirement, etct)
    • 1099s for independent contractors
  • Financial Statements
    • Trailing 12-month profit and loss statement
  • Certification that all employees live within United States
  • Most Recent Mortgage Statement/Lease (Rent) Statement
  • Most Recent Utility Bills (Electric, Gas, Phone, Interest, Water)

Contact Us/Submission:

We at American Commercial Bank and Trust/First National Bank of Ottawa are here to help!

For information please visit our website at and


Click Here for Press Release 


Please note that, in view of the high demand for loans through the Paycheck Protection Program (PPP) and the volume of existing and anticipated applications, and in view of the rules adopted by the Small Business Administration (SBA), The First National Bank of Ottawa makes no promise nor commitment that a loan will be made to your business or that your application will be submitted to the SBA before available PPP funds are depleted. The First National Bank of Ottawa will process applications consistent with criteria established by the SBA and The First National Bank of Ottawa, which may change at any time, without notice. If you are not a current borrower of The First National Bank of Ottawa, it may be most efficient for you to apply for a PPP loan through your existing lender.


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First Ottawa Bancshares, Inc. is the parent company of The First National Bank of Ottawa and its Branches: The First National Bank of Ottawa – Northfield, The First National Bank of Ottawa – Plaza,The First National Bank of Ottawa – South, Morris National Bank & Trust, Streator National Bank, Yorkville National Bank & Trust, and American Commercial Bank & Trust.

First Ottawa Financial Services is a division of The First National Bank of Ottawa

EMAIL NOTICE:  Please be aware that Internet E-mail is not a secure means of transmitting information. Private information such as Account Numbers and Social Security Numbers should not be included in your E-mail.


Main Bank
701 LaSalle St.
Ottawa, IL 61350
Phone: 815.434.0044
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Updated November 5, 2020: Please read for an important update regarding COVID-19.      Click Here