Paycheck Protection Program

At Carter Bank & Trust, caring is what we’ll always do best.

Updated: 1/18/2021

Program Updates

Paycheck Protection Program: Round 3 

A new round of PPP lending will soon be underway. Our bank is currently assembling a team of bankers, and putting procedures in place to process loan applications, potentially as early as the week of January 25th.

Due an overwhelming number of inquiries up to this point, please note the following:

  • The application process will only be available to existing business deposit or business loan customers.
  • Our waiting list is currently full. It is our hope that we will be able to assist additional customers at some point, however we encourage you to look for alternate sources of PPP funding to be on the safe side.
  • For customers already on the waiting list as of 1/15/21, our PPP team will be contacting you by the end of January to assist with the application process. Meanwhile, please visit to view a sample application and a list of the required documentation




Current PPP Customers

Thank you for choosing Carter Bank and Trust to access the Small Business Administration’s Paycheck Protection Program (PPP).   The program has been evolving since its inception, with numerous updates and changes over the past few months. We want to make sure you are aware of two key enhancements.

First, additional time has been granted to submit your loan forgiveness application. You now have up to 10 months after the end of the selected covered period you selected (8 weeks or 24 weeks) to submit your loan forgiveness application. If you chose the 8 week covered period, you will have until April 2021 to apply. If you chose the 24 week covered period, you have until July 2021. 

Second, the loan forgiveness application process has been significantly streamlined for loans of $50,000 or less. For more information on this improvement to the PPP loan forgiveness process, please visit:

Here are a few important things to know at this point:

(1)   A personal banker will be assisting you with the application process from start to finish.

(2)   Your personal banker will contact you within the next 90 days (no later than February 2021) to begin the process. We have numerous PPP applicants, so we ask for your patience.

(3)   Please use this time to make certain all required documents are in hand.

For current and comprehensive information on the Paycheck Protection Program, please visit We greatly appreciate the opportunity to assist you.  

Frequently Asked Questions

Will my loan be forgiven?
Loan amounts will be forgiven as long as:
  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent and utility costs over the 8 week period after the loan is made; and
  • Employee and compensation levels are maintained. 
What is the loan amount limit?

Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

When do I have to begin paying back my loan?

Loan payments will be deferred for 6 months. 

How long will this program last?

Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.

What can I use these loans for?

You should use the proceeds from these loans on your:

  • Payroll costs, including benefits;
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020.
What counts as payroll costs?

Payroll costs include:

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation; and
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
How much of my loan will be forgiven?

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount. 
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
How can I request loan forgiveness?

You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.

What are the details of loan repayment?

Interest Rate: 0.50% fixed rate

Payments deferred for 6 months

Paid in full in 2 years, but can be paid in less time without penalties or fees


What do I need to certify?

As part of your application, you need to certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
  • You have not and will not receive another loan under this program.
  • You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.


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Martinsville, VA 24112
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