Paycheck Protection Program Resources
We are working with many businesses on Cape Cod to guide them through the Paycheck Protection Program application and forgiveness process. We will continuously update this page with the latest information. Loans are subject to all requirements of the SBA’s Paycheck Protection Program under the CARES Act.
Update: February 23, 2021
Biden Administration Announces Measures to Target PPP Loans to Smallest Businesses
The White House has announced new Paycheck Protection Program measures to ensure that small businesses have prioritized access to PPP loans. The good news is that most of the businesses we have helped on Cape Cod fall into this category, including sole-proprietors and self-employed individuals. Please note that this information is only preliminary and we are awaiting the Interim Final Rules from the SBA in order to process loans under this revised criteria.
Beginning on February 24, businesses with fewer than 20 employees will have an exclusive application period lasting for 14 days until March 10. The measure also includes a revised loan calculation and funding set-aside for certain sole proprietors and self-employed individuals located in low-to-moderate income areas.
For more information and a fact sheet, visit: https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/22/fact-sheet-biden-harris-administration-increases-lending-to-small-businesses-in-need-announces-changes-to-ppp-to-further-promote-equitable-access-to-relief/ or https://www.sba.gov/node/1683580
Specifically, the White House said that the Small Business Administration would:
- Provide an exclusive 14-day window, starting Wednesday, Feb. 24, when only businesses with fewer than 20 employees can apply.
- Set aside $1 billion for PPP loans for sole proprietors, independent contractors and self-employed individuals without employees and located in low-to-moderate-income areas and revise the loan calculation formula for these applicants. (According to press reports, the revised formula would only be available to new applicants, not retroactive.)
- Eliminate a rule prohibiting businesses from receiving a PPP loan if the business is 20% or more owned by an individual who was arrested for or convicted of a felony (unrelated to financial assistance fraud) within the previous year, unless the applicant or owner is incarcerated at the time of application.
- Eliminate a rule prohibiting businesses from receiving a PPP loan if the business is at least 20% owned by an individual who is delinquent on federal student loan debt.
- Clarify that non-citizens may apply using individual taxpayer identification numbers.
Update: February 11, 2021
SBA Releases FAQs for Providing Revenue Reduction Documents
The SBA has published FAQs explaining to small businesses what documents they should provide with their application for a Second Draw PPP loan to demonstrate a 25% reduction in revenue and the business’ payroll costs.
Generally, to demonstrate a 25% reduction in revenue, the business provides annual tax returns or quarterly financial statements. To demonstrate payroll costs, the documentation to provide depends on how the small business is organized (sole proprietorship, partnership, corporation, etc.) and which IRS tax forms the small business files (Form 1040 Schedule C, Schedule K-1, Form 941, etc.). We encourage you to review these FAQs and confirm this documentation is submitted with your application.
Update: February 5, 2021
New Simplified Forgiveness Application Available in March
A new simplified application (SBA form 3508S) will be available online for our business clients in early March, which will allow for smoother and shorter processing times and gives businesses more time to prepare to apply. This simplified form is for businesses with loan amounts of $150,000 or less. Businesses will be able to apply for forgiveness for First Draw PPP Loans using this application initially with Second Draw forgiveness to follow at a later date. We’ll let you know when we determine a specific date when the simplified application will be available.
Update: January 28, 2021
Beneficial Ownership Guidance
The below breakdown by entity is a guide for clients who are applying for a PPP loan, but needs guidance on how to complete the beneficial ownership section.
Legal entity formed by filing with Secretary of State (Corporation, LLC, LP, etc., excluding Nonprofit Corporations –
- List each person or entity that owns 20% or more of equity (in other words, shares, LLC interests, partnership interests) in the borrower/applicant – and indicate that person or entity is a “Beneficial Owner” and include their ownership percentage.
- List one individual with significant responsibility to control, manage or direct a legal entity. This could be the CEO, CFO, COO, Manager, General Partner, President, VP, Treasurer; or any other individual who regularly performs similar functions – indicate that person is a “Control Person”.
- An individual can be both a Beneficial Owner and a Control Person.
- If there are no individuals with 20% or more ownership, list all individuals and their ownership percentage until the total aggregate is equal to or greater than 20%.
Nonprofit Corporations –
- List a single individual with significant responsibility to control, manage or direct a legal entity. This could be the CEO, CFO, COO, Manager, General Partner, President, VP, Treasurer; or any other individual who regularly performs similar functions – and indicate that person is a “Control Person”.
- Show Percent Ownership of 20%.
Sole Proprietorships – Insert the name of the sole proprietor as “Beneficial Owner” at 100% ownership.
Unincorporated Associations – Insert the name of the individual completing the application as “Certifier” at 20% ownership.
Update: January 25, 2021
New Simplified Forgiveness Application Available in February
A new simplified forgiveness application (SBA form 3508S) will be available online for our business clients in early February. Businesses will be able to apply for forgiveness of either First or Second Draw PPP Loans using this application. This simplified form is for businesses with loan amounts of $150,000 or less.
Update: January 19, 2021
PPP Open for Applications
Our online portal to apply for the Paycheck Protection Program is open. Please check your email for the application link. Starting today, businesses and nonprofit organizations can apply for either a First or Second Draw PPP.
If you applied previously for a PPP loan with The Coop, you should use the same username/password to login and apply for the Second Draw of PPP funding. Once logged in, your existing loan details will fill in automatically. If you need to reset your password or do not remember you password, please select the Forgot password? link. If you do not recall the email you used, please email email@example.com.
- Please note: If your first PPP application was submitted before April 27, 2020, with The Coop, you will need to create a profile in our online portal to begin your application for the Second Draw of PPP funding.
If you did not use The Coop for the First Draw of PPP loans, you can begin your application by creating a username/password and entering your business or nonprofit information. You will also need your SBA Loan Number of your first draw PPP loan.
If you have any difficulty using the online portal, please email firstname.lastname@example.org and one of our team members will respond to you.
Please Note: Standard email is not encrypted. For your protection, please do not include any personal non-public or account specific information in any email you send to the Bank.
Loans are subject to all requirements of the SBA’s Paycheck Protection Program under the CARES Act.
Update: January 15, 2021
PPP Applications Open January 19
The US Small Business Administration (SBA) has released instructions for those applying for the Paycheck Protection Program (PPP), either for the first time (First Draw PPP Loans) or the second time (Second Draw PPP Loans). Businesses and nonprofits can apply for either a First or Second Draw PPP Loan starting Tuesday, January 19. Below is summarized information and key takeaways to help you prepare for the application process.
We will email you again on Tuesday, January 19 when you are able to apply for a PPP loan. Please check mycapecodbank.com/ppp for the latest updates and information.
Summary of First and Second Draw PPP Loans
The SBA has provided one page summaries of the First and Second Draw PPP Loans. We have also summarized the two different draws and included specifics on how we will process these applications at The Coop.
For both First Draw PPP Loans and Second Draw PPP Loans, covered eligible expenses have been expanded (the items bolded in the list): Payroll costs, rent, mortgage interest, utilities, operations expenditures (software, cloud computing, and other human resources and accounting needs), property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance, supplier costs, and certain worker protection expenditures made to meet CDC guidance related to COVID-19.
In our online application portal, we have added tooltips to each of the fields in this section of the application to explain how you should enter this information. Please note that you will be prevented from submitting the application if the revenue is not reduced by more than 25% between comparable quarters in 2019 and 2020.
- First Draw PPP Loans – For businesses who did not apply for the previous rounds of the PPP, the Economic Aid Act has made the process smoother. Notably, new first-time applicants will have the ability to use either 2019 or 2020 when calculating their maximum loan amount. The maximum loan amount remains at either 2.5x the average monthly payroll up to $10 million. Businesses must not employ more than 500 people, and all must certify they are in economic need to qualify.
In addition to previous eligibility criteria, the Economic Aid Act expanded eligibility for:
- 501(c)(6) organizations
- Housing cooperatives
- Destination marketing organizations
- Select nonprofit news organizations with fewer than 500 employees that have a NAICS code beginning with 511110 or 5151
- Second Draw PPP Loans – For businesses and nonprofits who have previously applied for and received a PPP loan, the Second Draw PPP Loan is available. Businesses must use the full First Draw PPP Loan amount or will use that amount for eligible expenses before the Second Draw PPP Loan is disbursed. Entities must not employ more than 300 people and can demonstrate that the business suffered at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Accommodation and Food Services Businesses – Added to the Second Draw PPP Loan eligibility, businesses in the Accommodation and Food Services sector may borrow up to 3.5x the average monthly 2019 or 2020 payroll costs up to $2 million.
Beginning Tuesday, January 19, businesses and nonprofit organizations that applied for the First Draw of PPP loans with The Cooperative Bank of Cape Cod should use the same username/password to login and apply for the Second Draw of PPP funding. Once logged in, your existing loan details will fill in automatically, saving you time. If you need to reset your password or do not remember you password, please select the Forgot password? link. If you do not recall the email you used previously, or have any other issues logging in, please email SBAloaninquiries@mycapecodbank.com and one of our team members will respond to you.
If you did not use The Coop for the First Draw of PPP loans, you can begin your application by creating a username/password and entering your business or nonprofit information.
- Nonprofit Applications – Below are a couple of tips to make the nonprofit PPP application easier:
- On the SBA application, make sure to include a Contact Person.
- The SBA requires a NAICS code, but nonprofits can provide 999999 or ‘none of the above’ to bypass this. If you have any questions or difficulties please email SBAloaninquiries@mycapecodbank.com. This address is monitored by our team throughout the process.
Please Note: Standard email is not encrypted. For your protection, please do not include any personal non-public or account specific information in any email you send to the Bank.
Both First and Second Draw PPP Loans may qualify for full loan forgiveness if, during the chosen 8-24 week covered period, the following criteria are met:
1. The employee and compensation levels are maintained.
2. Loan proceeds are spent on eligible expenses (up to 40%) and payroll costs (up to 60%).
Once the covered period has elapsed, businesses will receive from The Coop their unique Forgiveness Application link to apply for forgiveness. For businesses with loans of less than $150,000, a simplified attestation will be made available through our online portal. More details from the SBA will follow on this simplified forgiveness application in the coming months.
For businesses or nonprofits that took an EIDL advance in addition to a PPP loan, the SBA will no longer deduct EIDL Advances from forgiveness payments. For those clients who have already applied for, or received forgiveness, the SBA will automatically remit a reconciliation payment to your designated PPP account at The Cooperative Bank of Cape Cod for the previously-deducted EIDL Advance amount, plus interest, through the remittance date. SBA requires us to apply this reconciliation payment to any balance remaining on the PPP loan.
Seasonal employers are defined as businesses/nonprofits that do not operate more than seven months in a calendar year or had gross receipts for any six-month period that were 1/3 or less than receipts for the other six months of that year. Seasonal businesses/nonprofits applying for new PPP loans can now choose to use their average payroll for any 12-week period between February 15, 2019, and February 15, 2020, as the baseline for determining their PPP loan size.
Update: January 12, 2021
Paycheck Protection Program Update
For businesses or nonprofits that took an EIDL advance in addition to a PPP loan, the SBA will no longer deduct EIDL Advances from forgiveness payments. For those clients who have already applied for, or received forgiveness, the SBA will automatically remit a reconciliation payment to your designated PPP account at The Cooperative Bank of Cape Cod for the previously-deducted EIDL Advance amount, plus interest, through the remittance date.
Applying for PPP – First or Second Draw
On January 11, 2021, the SBA began to accept applications for both first and second draw for Community Development Financial Institutions. This has caused some confusion, as some information has stated Community Banks instead of Community Development Financial Institutions.
The SBA will be accepting applications soon for all other participating Financial Institutions, (including Community Banks) however, that date has not been announced.
For helpful documents and a program overview, please visit: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
Update: January 7, 2021
The Small Business Administration is set to release the updated application process for re-opening the Paycheck Protection Program through March 31, 2021. We wanted to share some key dates and takeaways with you for consideration as well as the additional details we know to date. Once the SBA has release the final eligibility and application documentation, we will let you know via email and via updates on this page.
The “Consolidated Appropriations Act, 2021” (CAA) was signed into law on December 27, 2020 and the SBA was given the following dates to provide additional information:
- January 6 – The SBA published the first set of regulations regarding the Second Draw PPP Loans and changes to the First Draw PPP Loan Program.
- January 13 – The SBA will publish additional rules/guidance to ensure that eligible PPP borrowers who have not yet received forgiveness can either reapply for a PPP loan or request a modification to increase their existing PPP loan. In either case, we will need this guidance to be able to help our clients through making the best decision on how to proceed.
- January 20 – The CAA mandated the SBA to create a simplified Forgiveness Application Form for PPP loans of $150,000 or less, and we expect the SBA to publish this form and related information by Jan. 20.
After reviewing the CAA, below are the key takeaways, though not all of the details or information is yet available as of the date of this email.
- Second Draw of PPP Funds – The Second Draw of PPP funds are for small businesses/nonprofits with 300 or fewer employees that have sustained a 25 percent drop in gross receipts in any quarter of 2020 when compared to the same quarter in 2019. A business must have used or will use the full amount of their first PPP loan. The maximum loan amount is $2 million.
- Seasonal Businesses/Nonprofits:
- Seasonal employers are defined as businesses that operate no more than seven months in a calendar year or had gross receipts for any six month period that was 1/3 less than receipts for the other six months of the year.
- Seasonal businesses/nonprofits applying for new PPP loans can now choose to use their average payroll for any 12-week period between February 15, 2019 and February 15, 2020 as the baseline for determining their PPP loan size, rather than having to choose from one of two eligibility periods under the original PPP rules.
- Requests of Increases of PPP Loan Amounts – Some businesses/nonprofits did not obtain the maximum loan amount of the PPP loan they were eligible for. The CAA allows these entities to re-apply for a PPP loan or to apply for an increase to their existing PPP loan. We expect the full details of how this will work from the SBA on Jan. 13.
- Economic Injury Disaster Loan (EIDL) advances – Those businesses/nonprofits who received an EIDL advance will no longer be required to deduct the advance from PPP loan forgiveness amounts. We are awaiting more information on this from the SBA for specifics, especially for those who have already applied for and/or received forgiveness.
- Use and Forgiveness of Proceeds Expanded – The CAA expands the types of expenses eligible for forgiveness. In addition to mortgage interest, interest on other debt, rent, and utilities, businesses/nonprofits may also receive forgiveness for costs related to:
- Group paid life, disability, vision and dental insurance premiums under an expanded definition of “payroll costs;”
- Certain operations expenditures, such as software, cloud computing, and other human resources and accounting needs;
- Certain property damage costs incurred as a result of public disturbances occuring during 2020 that were not covered by insurance;
- Certain supplier costs; and
- Certain worker protection expenditures for maintaining social distancing, sanitation or meeting other customer or worker safety requirements related to COVID-19.
- Forgiveness of Expenses – While the expenses eligible for forgiveness have been expanded, please note that a minimum of 60% of PPP loan proceeds must still be used to pay payroll costs. The additional expenditure types will be counted toward the remaining 40% of loan proceeds.
Again, many more details will be coming in the weeks ahead and we will be in communication with you as we receive them. If you have any questions or concerns, please reach out to your Commercial Relationship Manager or Branch Manager – Small Business Specialist. We’re here to help!
Update: December 29, 2020
What We Know About PPP
The reauthorization of the Paycheck Protection Program was approved last week by Congress as part of the coronavirus relief bill, and it was signed by President Trump on Dec. 27. Now, the Small Business Administration can begin working on the details of the next round of PPP loans. While we aware of the intentions of the bill, the SBA’s implementation will likely bring additional clarifications. Based on what we learned with the initial round of PPP loans, it may be premature to communicate those details now but we will share those as soon as the SBA has confirmed the information. Once the SBA has determined the application process and outlined the rules about who can apply, we will let you know via email and via updates on this page.
Update: December 22, 2020
Paycheck Protection Program – Reauthorized Funding
There has been much in the news lately about the new stimulus bill, and another round of Paycheck Protection Program (PPP) funding. Contained within this new stimulus package is $284 billion of funding to the U.S. Small Business Administration to provide a second draw of PPP loans to eligible businesses. The good news is that many of the businesses on the Cape that benefitted from the first draw of PPP funding may qualify for a second draw of PPP funding. Although Congress passed the relief bill late Monday, December 21st, the SBA will be given 10 days after enactment to provide the details and issue rules. Please know that we are diligently working through the evolving SBA guidance and will keep you updated as we know more.
When can I apply?
Once the details are finalized and the SBA has offered their final guidance, we will communicate to you everything we know, including best practices to make the application process as smooth as possible. We are working closely with our technology partner to make sure applications are available online as soon as possible after the program details are finalized and the SBA is ready to begin receiving applications. Please stay tuned for more information.
If you have any questions or concerns, please reach out to your Commercial Relationship Manager or Branch Manager – Small Business Specialist. As we have been throughout the pandemic, we’re here to help our customers through this next phase.
Simple PPP Forgiveness Application Announced
On Oct. 8, the Small Business Administration (SBA) and Treasury Department announced the release of a simpler forgiveness application (3508S) for Paycheck Protection Program loans of $50,000 or less, streamlining the PPP forgiveness process to provide financial and administrative relief to small businesses. This simpler application is available within your forgiveness application portal.
Below are some helpful links with more information about the new simple application:
PPP Forgiveness Application Resources
Useful guides and videos to help prepare you for the process and to make it as streamlined as possible are available through our technology partner’s website: https://www.web.abrigo.com/cape-cod-cooperative-bank-ppp-forgiveness.
Here are the steps we recommend to make the process as easy as possible for you:
- Review the first 2 PPP Forgiveness Application Guide Videos: Forgiveness Requirements – Supporting Documentation and PPP Software – Accessing the Application. (https://www.web.abrigo.com/cape-cod-cooperative-bank-ppp-forgiveness)
- Determine if you are eligible to complete the PPP 3508EZ Forgiveness application, by visiting the Treasury’s website (https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf), and read through the boxes on page one.
- If you can check at least one of the three boxes on page one, you are eligible to use the 3508EZ and will not need to review any other videos.
- If you determine that you are not eligible to use the EZ form, you will need to complete the 3508 Full Application. We recommend that you review the remaining videos, which include information and helpful tips on preparing the documentation, calculations, and inputs for the application process. The Final Upload and Submission Videos are especially important to ensure PPP Loan Forgiveness.
- SBA Interim Final Rules for forgiveness have been released (Updated 8/25/2020).
- The SBA released new FAQs on PPP Loan Forgiveness, Click here to download.
Forgiveness Application Request Link
On Monday, August 10th, personalized PPP Loan Forgiveness Application links were emailed out to each business that had applied for a PPP Loan. If you did not receive that email with your personalized link, please reach out to your Commercial Relationship Manager or Branch Manager – Small Business Specialist. The email came from SBALoanInquiries@mycapecodbank.com.
Forgiveness Application Request Tips
1. Establish a PIN – You will be prompted to set up a PIN to access this link. Be certain to record the PIN as you will need it to continue to access and complete the forgiveness request. Only one PIN will be provided per company. You can access the application using this PIN as many times as you need to complete the application for forgiveness.
2. Check Your EZ Form Eligibility – Click the blue button to determine if you are eligible to use the EZ form for your forgiveness application. The application will automatically change to an EZ form if one of the three scenarios presented applies to your business. If you are able to select at least one of the boxes, scroll to the bottom of the page and select “Save and Close”. If these scenarios do not apply to your business, select “Cancel” at the bottom.
3. Help Text/Suggested Documents – Many of the input fields have a small “?” next to the field that describes what the form is looking for. If you are unsure of what to enter in a text block, please click on one of these “?” for an answer. In some areas in the application, there are hyperlinks for “Suggested Documents” that will aid you in completing that particular section correctly.
4. Save Buttons –Save buttons are displayed in many areas of the application. Please remember to save often as you progress through the application so your information is captured.
5. Verify Information – If any of the information is inaccurate in the prepopulated areas of the forgiveness application, please contact your relationship manager so we can correct it.
6. Schedule A – For those companies that need to complete the full application, you may either input the calculated values for the Schedule A or download a blank worksheet from the portal, enter the appropriate values into the worksheet, and the worksheet will calculate the inputs for you. Once the worksheet is completed, it can be uploaded to the application and the values will automatically fill in for you.
Our goal is to provide you a smooth forgiveness application process. If you have any questions or need help at any time, please reach out to your Commercial Relationship Manager or Branch Manager – Small Business Specialist. We’re here to help you get your PPP Loan Forgiven!
PPP Loan Forgiveness Documents Needed by Business Type
Keeping accurate records of how you spent the PPP proceeds will help ensure you meet the SBA required documentation requests and maximize the forgiven portion of your loan. To ensure that 100% of your loan is forgivable, at least 60% of the funds must have been used for payroll expenses with the remainder spent on certain eligible, non-payroll expenditures. Remember that the Covered Period can either be an 8 or 24 week period, determined by you at time of application for forgiveness.
Depending on how your business is organized, you will need many of the documents outlined below:
Self Employed, Schedule C Borrowers
- You will need to prove your expenses for utilities, rent, and mortgage interest. However, for the owner compensation replacement, you just need to provide your 2019 Schedule C to be able to claim net profit for forgiveness.
LLPs, Partnerships, S-Corps, and Corporations
You will need to provide documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or Alternative Payroll Covered Period. Not all of the forms listed below will be applicable to all organizations.
- You will need Bank statements or third-party payroll provider statements, IRS Schedule K1s, tax form 941 or 944 or equivalent third-party payroll service provider statements;
- A copy of the quarterly employment and wage detail reported to the Department of Unemployment Assistance, or their equivalent from your payroll processor;
- Report of your quarterly unemployment insurance contributions;
- If you have payroll, Records of any retirement or health insurance contributions;
- Employer Medical Assistance Contribution (EMAC);
- Workforce Training Fund contributions;
- Payment receipts, canceled checks or account statements for eligible non-payroll expenses;
- An invoice, bank statement or payroll documents showing you were in operation and had employees on February 15, 2020.
LLPs and Partnerships
For LLPs and Partnerships, you will need the following documents for payroll documentation:
- Schedule K-1s, IRS Form 941 or 944 for 2019 if you have payroll;
- State quarterly wage unemployment insurance tax reports or their equivalent from you payroll processor;
- If you have payroll, Records of any retirement or health insurance contributions;
- An invoice or bank statement showing you were in operation on February 15, 2020;
- A payroll statement or similar documentation showing you had employees on February 15, 2020.
Non Payroll Documentation:
You should plan to provide documentation that verifies the existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period, which can be either an 8 or 24 week period.
- Mortgage Interest on Business Property: You will need to gather Bank mortgage account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments; alternatively you could provide a copy of an eligible mortgage promissory note and copies of receipts or cancelled checks verifying payments from the Covered Period.
- Lease Payments on Business Property: You will need to provide a copy of your current lease agreement and receipts or cancelled checks verifying payments from the Covered Period. These documents should be from February 2020 through the Covered Period.
- Utility Payments: You will need bills and cancelled checks for the eligible utility payments including services for electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020, through the covered period.
We will update PPP borrowers via email and updates will be posted on this page. If you have any questions or concerns, please reach out to your Commercial Relationship Manager or Branch Manager – Small Business Specialist.
Your Banker is Available
As your business partner, we are here to help. Please reach out to your Commercial Relationship Manager, your Branch Manager – Small Business Specialist, or any of us here at The Coop if you need to speak to someone directly about your business banking or help you navigate the information below. If you would like to submit an inquiry online, you may Contact a Small Business Specialist and a banker will get back to you as soon as we are able.
Additionally, for any transaction related questions, our Customer Assistance Center is available to help our customers. Reach us during normal business hours at 508.568.3400 or toll free at 800.641.1100.