The CARES Act for Small Businesses: Paycheck Protection Program (PPP)

 

Due to overwhelming demand, calls and emails may take longer than normal to answer or return.

 

On April 24, 2020, additional funding for the SBA Paycheck Protection Program was signed into law. We are currently accepting new applications from applicants whom had an existing business deposit relationship in the name of the applicant entity on or before April 2, 2020.

 

Please be advised that we have received and continue to work on many applications which have not yet been processed from the first PPP funding period. Applications received during the first funding period must be completed and closed prior to beginning any active review of new applications.

 

With the large number of financial institutions participating in the PPP and the enormous demand for PPP loans, it is not possible to predict the duration of availability under this PPP funding period. As such, we cannot express or imply any guarantee that any applications received from either PPP funding period will be processed and/or funded.

 

 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers a new program, the Paycheck Protection Program (PPP), which helps businesses keep their workforce employed during the outbreak.

 

 

About Paycheck Protection Program (PPP) Loans

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  • The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
  • The 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:
    • Due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll.
    • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  
    • Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
  • Loan payments will be deferred for six months.
  • No collateral or personal guarantees are required.
  • There are no fees associated with PPP loans.
  • PPP loans have a maturity of 2 years and an interest rate of 1%.
  • The Paycheck Protection Program will be available through June 30, 2020.
  • Terms and conditions are subject to change.

 

 

Who can apply

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  • At this time, we are focused on assisting our existing members. We are currently only accepting new applications from applicants whom had an existing business deposit relationship in the name of the applicant entity on or before April 2, 2020. We advise non-members to contact their current financial institution or local SBA district.
  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by 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 if their individual locations employ less than 500 workers.

 

 

How to apply

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To apply for a PPP Loan:

  1. Download and complete the application form.
  2. Download and complete the Paycheck Protection Supplement. Make sure to include all the requested supporting documentation.
  3. Email the completed application, supplement, and requested supporting documentation in a single email to PPP@websterfirst.com. Be sure to include all items, as incomplete application packages will result in processing delays.

 

Due to overwhelming demand, calls and emails may take longer than normal to answer or return. We highly encourage all applicants to send submissions via email. Our team appreciates your patience.

At this time, we are focused on assisting our existing members. We are currently only accepting new applications from applicants whom had an existing business deposit relationship in the name of the applicant entity on or before April 2, 2020.