FAQ's For Housing Co-op Applications Only

Please review before starting your online application.

The below guidance is subject to change as the SBA continues to update its guidance and its systems. Please check back here for updates.

•  Only a board member or officer who is or will be authorized by the cooperative board to sign the loan documents (and not a property manager) must complete the application in the system.
  
  
•  Business Information Section
  • Please select 216(b) housing cooperative as the business type.
  • The housing co-op NAICS Code is 813990.
  • Please ensure you enter your legal corporate name and business address as located on your organizational documents.
• Ownership Section 
  • You must complete this section in the system before submitting your application.
  •  If you have sponsors or other persons or entities that own 20% of the co-op shares, you must include them in this section and provide all requested information.
  • If there are no such persons, the system will still require you to list a person or entity as an “owner.” In that case, please include the co-op name, address, and TIN and indicate 100% ownership.

Please include the following documents with your application:

•  Articles or Certificate of incorporation and Bylaws.
• Payroll statement (or similar documentation) that covers 2/15/20 – Must show that business was in operation and had employees on that date.
•  A 2019 or a 2020 (as applicable) Payroll Processor’s record showing wage, benefit, and tax (federal and state).
•  If a Payroll Processor’s record is not available, you must provide sufficient documentation to support your calculation of eligible amount. This documentation may include:
  • 2019 or 2020 Federal Tax Form 941
  • IRS Form W-2 and IRS Form W-3
  •  State quarterly wage unemployment insurance tax reporting from each quarter.
  • Evidence of any retirement and group health, life, disability, vision, and dental insurance contributions must be provided if used to substantiate the applied-for PPP loan amount.

 We will not be able to process your application without the above information so to avoid delays, please be sure that it is all included before submitting your application.

If your application is approved by the SBA, we will contact you regarding closing and the additional required documents, including a resolution from the Board authorizing the PPP Loan.

PPP Applications (First Draw)

• Subject to SBA rules, an applicant is generally eligible for an initial PPP loan if:
  • The applicant has not received a PPP loan from NCB or any other financial institution.
  •  The applicant was in operation on February 15, 2020.
  •  Together with its affiliates, has no more than 500 employees.
    Please confirm with your counsel or other advisor as to detailed eligibility requirements
• Maximum loan amount and term
  • 2.5X average monthly payroll up to $10 million, as calculated under the SBA rules. (There is also a $20 million corporate group cap)
  •  5 year term

• Subject to he detailed SBA rules, the following categories of expenses are generally permissible of any PPP loan proceeds: 
  
  • Payroll costs ( at least 60% of proceeds must be used for payroll)
  • Business rent and lease agreements
  • Business mortgage interest
  • Business utility payments
  • Covered operational expenses
  • Covered personal protective equipment expenses 
  • Covered property damage expenses
  • Covered signage expenses 

• Loan Forgiveness: 
  • May be eligible for loan forgiveness if proceeds are used on payroll and other eligible business expenses.
  •  Employee and compensation levels are maintained.
  • Minimum of 60% must be used on payroll costs.

PPP Applications (Second Draw)

• An applicant is eligible for  a second draw of a PPP loan if: 
  
  • The applicant previously received a PPP loan and will or has used the full amount only for authorized uses by the date of the disbursement of the second PPP loan. 
  • The applicant was in operation on February 15, 2020.  
  • Has no more than 300 employees combined with affiliates ( unless NAICS 72, 5111110 or 5151 then 300 per location).
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 or if in  operations for 2019 you may use annual gross receipts. 

• Maximum  loan amount and term 
  • 2.5X average monthly payroll up to $2 million.  ( $4 million corporate group cap.
  • Entities in industries assigned to NAICS code 72 (Accommodations and Food Services) may receive Second Draw PPP Loans of up to 3.5X average monthly payroll costs.
  • 5 year term 

• Eligible Expenses:
  Subject to detailed SBA rules, the following categories are generally permissible uses of any PPP loan proceeds: 
  
  • Payroll costs ( at least 60% of proceeds must be used for payroll)
  • Business rent and lease agreements
  • Business mortgage interest
  • Business utility payments
  • Covered operational expenses
  • Covered personal protective equipment expenses 
  • Covered property damage expenses
  • Covered signage expenses 
• Loan Forgiveness: 
  • May be eligible for loan forgiveness if proceeds are used on payroll and other eligible business expenses.
  • Employee and compensation  levels are maintained.
  • Minimum of 60% must be used on payroll costs.

Loan Forgiveness

• NCB is currently working on loan forgiveness for those customers that received PPP loans in 2020.  
• You will receive an invitation from us to log in to the portal and begin preparing your applications for submission.
• The Small Business Administration has streamlined the loan forgiveness application for Paycheck Protection Program loans totaling $50,000 or less.
• We will update this webpage with more information for loan forgiveness for those that received funds in 2021.