More info – including documentation requirements — for the Paycheck Protection Program (PPP)
To our valued business customers,
The Small Business Administration (SBA) finalized its guidelines for the Paycheck Protection Program in a 31 page (!) document last night. We have reviewed the new guidelines.
Changes to the earlier guidance include:
- An increase in the fixed rate of interest from 0.5% to 1.0%. This is still a very low rate – and remember: The loan may be 100% forgivable as long as the 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 as long as employee numbers and compensation levels are maintained.
- Clarification on documentation requirements (see below)*
- Minor changes to the application.
If you have already applied, there is no need to complete the updated application:
However, we will be contacting you to ensure that you have provided adequate payroll documentation and that the loan request amount appears consistent with the SBA’s latest guidance.
If you have not yet applied and are considering applying to the program:
Our April 1 update contained an overview of the program. We also recommend you review this program fact sheet in making a decision to apply.
Please note: We are experiencing very significant demand for this attractive program, so we are working only with our current business customers to secure PPP loans where desired.
>>>How to Apply <<<
The updated application can be found below — along with documentation requirements and instructions for submitting your application.
- Instructions for completing, signing and submitting your application to Savings Bank of Walpole can be found here.
- Documentation requirements, as detailed below, should be scanned and uploaded via Savings Bank of Walpole’s secure file upload portal.
* Required documentation:
- Application
- Payroll Records for 2019 – Can be on a P&L or 2019 Tax Return
- Proof of payroll on or around February 15, 2020
- A signed note from the applicant(s) which answers the following questions:
- How did you calculate your requested loan amount?
- Have you applied to the EIDL program, and if so, have you received EIDL funds? (NOTE: EIDL funding does not preclude you from also applying for the Paycheck Protection Program.)
- Have you ever had any other SBA loans – and if so, with whom and what is the current status (i.e. existing or paid in full)?
We encourage you to get your application and documentation to us as soon as possible if you believe the Paycheck Protection Program will help your business or nonprofit organization.
We will continue to keep you informed about any changes and members of our commercial lending staff are available to work with you.
We’re all in this together.
Sincerely,
Mark Bodin
President
Stephen Bianco
Senior Vice President/ Senior Lender