Paycheck Protection Program Loan
Needham Bank is now accepting Paycheck Protection Program (PPP) Loan applications from businesses that are eligible to receive their first PPP loan as well as those that have already received a PPP loan and are eligible to receive a second PPP loan in this round of funding (a “Second Draw PPP loan”).
Please note that the SBA has announced an exclusivity period for borrowers with fewer than 20 employees that began at 9:00 AM ET on February 24 and will last through the end of March 9. We will continue to accept applications from all borrowers, but will submit only those from companies with fewer than 20 employees between February 24 and March 9. On March 10, we will resume submitting applications from companies with 20 employees or more.
If you previously applied for a PPP loan in this round of funding and you have 20 or more employees, your application has been submitted to SBA.
Our online borrowing portal is available to both customers and non-customers. Please see the links below for more information:
Please note that we will accept online applications only in order to provide a better customer experience. Paper applications will not be accepted.
For information about Paycheck Protection Loan forgiveness for PPP Loans in 2020 (the first round of funding), click here.
Frequently Asked Questions
Can I apply for a Second Draw PPP loan even if my business already received a PPP loan in the first round of funding in 2020?
Yes, you can apply for a Second Draw PPP loan if:
- Your business has 300 or fewer employees
- You have used the full amount of your first PPP loan before your second loan is funded
- You can show that your business had at least a 25% decrease in gross revenue in any 2020 quarter compared to the same quarter in 2019
- Current economic conditions make a PPP loan necessary to support ongoing operations
How do I determine the loan amount to request for my Second Draw PPP loan?
- You can request a loan amount of up to 2.5 times your average monthly payroll costs, up to a total of $2 million
- If you are in the accommodation or restaurant business (North American Industry Classification System (NAICS) codes starting with 72), you can request 3.5 times your average monthly payroll costs, up to a total of $2 million
- Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020
For the latest guidance from the SBA on how to calculate revenue reduction and maximum loan amounts for a Second Draw PPP loan, please visit:
- Second Draw PPP Loans - How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide Released (1/19/21)
This will be the first PPP loan for my business. What are the requirements?
You can apply for a first PPP loan if:
- Your business was in operation before February 15, 2020 AND
- Your business has 500 or fewer employees and is eligible for other SBA (7a) loans
- You are a sole proprietor, independent contractor or self-employed individual
- Your business is a non-profit (including churches and 501(c)(6) membership organizations)
- Your business is an accommodation or food service operation (those with NAICS codes starting with 72) with fewer than 500 employees per physical location
How do I determine the loan amount to request for my first PPP Loan?
You can request a loan amount of up to 2.5 times your average monthly payroll costs, up to a total of $10 million. For the latest guidance from the SBA and Treasury Department on how to calculate the maximum loan amount for a first draft PPP loan, please visit:
- How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide – By Business Type (Released 1/17/2021)
What is the interest rate on Paycheck Protection Loans?
The interest rate is 1%.
What is the term of the Loan?
The term of the loan is 5 years.
When do PPP funds need to be spent?
PPP borrowers choose either an 8-week or 24-week covered period in which to spend the loan proceeds.
How will loan forgiveness work?
PPP borrowers will need to spend at least 60% of their loan proceeds on payroll over a covered period of either 8 or 24 weeks.
Other uses of loan proceeds that will be potentially forgivable include:
- Qualified mortgage interest, rent, and utilities
- Covered worker protection and facility modification expenditures after March 1, 2020, including personal protective equipment to comply with COVID-19 federal health and safety guidelines
- Expenditures to suppliers for current operations
- Covered operating costs such as software and cloud computing services and accounting needs
We will continue to update this page as new information is available. If you have additional questions, please call our Paycheck Protection Program loan specialists at 781-474-5845.