Paycheck Protection Program Loan
The Small Business Administration and Treasury Department have announced that the Paycheck Protection Program will re-open the week of January 11, 2021 for both new and some existing borrowers. Below is information related to Paycheck Protection Program (PPP) Loans and how Needham Bank will offer this program. We will continue to update this page as new information is available.
For information about Paycheck Protection Loan forgiveness for PPP Loans in 2020 (the first round of funding), click here.
Frequently Asked Questions
When will Needham Bank begin taking applications?
The Small Business Administration (SBA) issued new guidance on January 8, 2021 and we are working to update our online application portal to reflect the new program. Needham Bank will be offering loans to businesses that are eligible to receive their first PPP loan as well as those who 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”).
We will update our website when the portal is ready to accept applications. If you are interested in applying for a Paycheck Protection Loan through Needham Bank, please complete the request form on this page to be notified when the portal is ready.
Please note that we will accept online applications only in order to provide a better customer experience. Paper applications will not be accepted. We anticipate that our online application portal will be ready no later than January 18th, 2021. Please continue to monitor our website for updates.
Can I apply even if I’m not a current Needham Bank customer?
Yes – we are accepting applications from both customers and non-customers because we want to help as many businesses as we can. However, we request that you open a Needham Bank business deposit account under the same business title (or a Needham Bank personal deposit account if you are a sole proprietor) as all loan proceeds will be deposited to that account.
We are accepting applications from our assessment area:
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
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
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.
Please notify me when Needham Bank is accepting PPP loan applications.
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