Information for businesses in response to Coronavirus (COVID-19)
SBA Payroll Protection Program (PPP) Loan Forgiveness Information
Update: PPP Loan Forgiveness for Loans Under $50,000
Recently, the SBA released information on changes made to the Paycheck Protection Program (PPP). Some updates to the program include:
- Extends the end date of the “covered period” for a PPP loan from June 30, 2020 to Dec. 31, 2020.
- Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years.
- Extends the loan forgiveness period from 8 weeks to 24 weeks.
- Clarifies that if a borrower submits its forgiveness application within 10 months of the end of the loan forgiveness period, the borrower will not have to make any payments on the loan before the date SBA remits the forgiven amount to the lender.
How to apply for PPP Forgiveness
Webster Five is excited to provide information on how to apply for forgiveness of your PPP loan. To make the process as easy as possible, we have designed an online portal to submit your documents and track your application status. Remember, you can only apply for forgiveness through your lender, and not directly through the SBA. You can find an FAQ on PPP loan forgiveness from the SBA here. The SBA will begin accepting forgiveness applications on August 10.
The SBA published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
Click here to view the EZ Forgiveness Application. Click here to download instructions for the EZ Loan Forgiveness Application.
For all other borrowers, click here to view the Full Forgiveness Application. Click here to download instructions for the Loan Forgiveness Application.
You can find additional information on the SBA’s PPP Loan informational page.
How to Apply for SBA Paycheck Protection Program (PPP) Loan
Barring any last minute changes in Congress, the PPP program for new loans ends on August 8 at midnight. As of the close of business Friday, August 7, Webster Five will no longer accept new PPP loan applications.
We understand that businesses are struggling as a result of the Coronavirus (COVID-19) pandemic and we’re here to help. As a Preferred Lender with the SBA, we are here to help you participate in the recently enacted federal relief programs designed to keep businesses up and running.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act has allocated billions to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small and medium sized businesses who maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
In order to submit an application, please contact us at 800-696-9401.
You must have the following documentation ready before submitting an application. An application will only be considered complete with the following:
- Download and complete an application here
- Download and complete the Loan Amount Estimator Workbook here
- Verification that the borrower has been in operation as of February 15, 2020
- Verification that the borrower has employees with paid salaries and payroll taxes for at least the past 12 months. (For Example: W’2s, ADP information, CPA certifications)
- Verification of the number of employees
- Total dollar amount of average monthly payroll costs. Please note that individual employee salaries that exceed $100,000 (capped per employee) need to be excluded from the total.
- Employees must be US based
- Additional information or documents may be required once your request has been received
Please note, due to the overwhelming number of requests, we will no longer be accepting non-customer applications at this time.
Learn more about the PPP program:
Additional financial support resources for your business:
- The City of Worcester has made available $500,000 in Community Development Block Grants to be distributed in $10,000 micro-grants to businesses. Apply here.