The U.S. Small Business Administration (SBA) has received additional funding through the Economic Aid Act and its Paycheck Protection Program (PPP). The program is currently available and set to expire on or by May 31, 2021 or whenever funding has been exhausted.
PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
For your convenience, we have provided the following application information as well as some general information that you will need to review and determine if you or your business meet the qualification criteria. We strongly recommend that you refer to www.sba.gov for the most up to date information and any questions you may have around the program. Your accountant may also be a good resource as there are potential impacts relative to IRS laws that may or may not apply to you or your business.
About the Application Process
Tips to help the application process go smooth:
- If you wish to apply for a PPP loan please submit your application and all required supporting documentation under one single email. Multiple attachments are acceptable but please be sure to send as a .pdf attachment under one email
- If you are applying for more than one business, please submit separately for each entity
- When completing the application it is imperative to make sure that your application is clearly legible and that you complete all areas and fill in all information that is requested on the form; including all contact information such as name, email address, phone number etc. as failure to do so will result in a delay or rejection of your application
- Andover Bank cannot guarantee that your application will be processed or approved by the SBA before the program expiration date or funding runs out
- For more information and updates and to determine eligibility and what types of documentation will be required with your application please go to www.sba.gov/ppp or www.treasury.gov/CARES
First Time Applicants
Eligible 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.
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 Applicants
The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP 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.
For additional program details:
We're Here for You
If you have questions, we encourage you to contact our VP of Commercial Banking, Steve Vennare, at 844-259-5473 or svennare@andover.bank.