The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities.
This loan has a maturity of 2 years and an interest rate of 1.00%. All payments are deferred for six months.
Who Can Apply
This program is for any business with less than 500 employees (including sole proprietorships, independent contractors, tribal businesses and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.
At this time, NCB is taking applications from current commercial loan and deposit customers, cooperative businesses and businesses in Highland County, OH.
Unfortunately, housing cooperatives, condo associations, and homeowner associations are not eligible for this program.
Small businesses are eligible to borrow up to two and a half months of payroll costs with a maximum of $10 million. (Note: there is a per employee payroll cap of $100,000 annualized and other limitations).
Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor NCB will charge any fees.
Thank you for choosing National Cooperative Bank for your SBA Paycheck Protection Program (PPP) loan. We know you are considering/working on the next step of the PPP process by applying for loan forgiveness from the SBA. Recently, the President signed into law the Paycheck Protection Program Flexibility Act, which provides additional flexibility within the forgiveness component of the Act.
Changes impacting PPP forgiveness include: · Creating greater flexibility on the use of Loan funds. For example, lowering the required Loan Amount percentage that must be spent on payroll related costs from 75% to 60%. · Lengthening the covered period businesses have to use loan proceeds from 8 weeks to 24 weeks. · Extending the June 30 deadline to rehire workers to December 31, 2020.
These and other changes will likely impact the timing for you to apply for forgiveness . We are implementing a technology solution to ease the PPP forgiveness application process. We expect additional guidance to come out in the coming days/weeks and we will provide information on our website.
How To Apply
Please fill out the form below with the following required information: