East Cambridge Savings Bank is once again participating in the Paycheck Protection Program (PPP) which reopened on January 11, 2021 (Round Three), as announced by the Small Business Administration (SBA).
Under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, the newly expanded Paycheck Protection Program provides:
Additional updates to the program include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs.
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.
- The PPP provides greater flexibility for seasonal employees.
- Find more information on Round Three of PPP loans on US Department of the Treasury and the US Small Business Administration (SBA).
Information for First Draw PPP borrowers:
- Eligible applicants who did not receive a PPP loan prior to August 8, 2020 are now able to apply for a PPP First Draw on or before March 31, 2021.
- Eligibility for PPP loans has been revised to include additional types of entities including 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.
- Expanded eligible expenses now include payroll costs, rent, mortgage interest, utilities, operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
Eligible applicants for a First Draw PPP loan include those who:
Apply for First Draw
- Have fewer than 500 employees.
- Were in operation as of February 15, 2020.
- The maximum loan amount for a First Draw PPP loan is 2.5x your average monthly payroll, or $10 million, whichever is less.
- Businesses are not required to demonstrate a revenue reduction when applying for a First Draw PPP loan.
Information for Second Draw PPP borrowers - If you received a First Draw PPP loan (from ECSB or from another financial institution) and are interested in a Second Draw PPP loan
Borrowers are generally eligible for a Second Draw PPP loan if they:
- Were eligible for and previously received a First Draw PPP loan.
- Have used or will use the full loan amount only for eligible expenses before the Second Draw PPP loan is disbursed.
- Have no more than 300 employees.
- Able to demonstrate at least a reduction of 25% or greater in gross receipts between comparable quarters in 2019 and 2020.
Second Draw PPP Loan Amounts:
Apply for Second Draw
- First Draw PPP loan borrowers may apply for a Second Draw PPP loan up to $2 million with the same general terms as the First Draw PPP loan.
- The maximum loan amount for a Second Draw PPP loan is 2.5x the average monthly 2019 or 2020 payroll costs or $2 million, whichever is less.
- For borrowers in the Accommodation and Food Services industry (NAICS 72), the maximum loan amount for a Second Draw PPP loan is 3.5x average monthly payroll cost, or $2 million, whichever is less.
- There is no requirement that your First Draw PPP loan must be forgiven before you can apply for your Second Draw PPP loan.
Get Ready to Apply
To help you get ready and assist you with submitting a complete and accurate loan application, you will need some important information including:
- Determining your loan amount.
- Documents and information required to complete your PPP loan application.
- Calculating your businesses’ revenue reduction of 25% or greater, a requirement for a second draw PPP loan.
- This information is critical for you to understand what will be required for application submission.
- Complete and accurate submissions will help to expedite the review process and minimize issues that need to be resolved prior securing your PPP Loan guaranty.
- Find more information on Round Three of PPP loans:
Contact an East Cambridge Savings Bank Lender today.
- All PPP loan applicants (First Draw PPP and Second Draw PPP) must operate within the Bank’s assessment area and have an existing deposit account with the Bank or open one prior to closing.
- Applications will be accepted on a first-come, first-served basis and placed in a queue until the Bank is able to initiate submissions to the SBA.
- Bank will continue to accept and process applications until we are notified by the SBA that funds are depleted or until the program ends. Acceptance of an application does not guarantee approval.
- Applications must be submitted via the Bank’s online application portal.
- The SBA requires the Bank to perform a good faith review of the application prior to submission for approval.
- Incomplete or missing information will delay the processing of your application. The Bank may request additional documentation from loan applicant after its review and/or submission to the SBA.
- The SBA is not providing instant approval on Round Three loans (First draw and Second draw loans). The Bank will notify applicants once SBA approves the application.