UPDATE – January 19, 2021 – We are now accepting new Paycheck Protection Program (PPP) applications. Please use this link to access our loan portal. https://cambridgesavings.lenderscooperative.com.
We will update this page regularly with helpful information to guide you through the loan application process. Thank you for your trust in Cambridge Savings Bank.
Please note Cambridge Savings Bank is only accepting new PPP loan applications through our Application Portal. Paper application packages will not be accepted.
CHECKLIST OF ITEMS YOU WILL NEED TO APPLY
Cambridge Savings Bank Business Checking Account number (or checking account in your name for sole proprietors). All applicants must have a Cambridge Savings Bank Checking account with the same legal name as your PPP Loan Application. This is where we will deposit your PPP funds. Please contact your relationship manager if you intend to apply for a PPP loan in this round and do not have an existing checking account with Cambridge Savings Bank that meets this criteria.
Know who the authorized signers are for your business and ensure all of them are able to provide their Social Security Number, mailing address, preferred email, and text-capable phone number for the DocuSign process of the PPP application (this is especially important for charities).
A documented Borrower Resolution. Evidence of this information will likely be required as part of the application.
The EIN or TIN number that’s associated with the business applying for the PPP loan
Proof of entity type (LLC, S-corp, sole proprietor, etc.)
Schedule of Ownership (names and percentages) for the business - the ownership percentage must add up to 100%
Your 2020 & 2019 payroll tax reports (941, 940, or 944)
You cannot account for gross pay that is over $100,000
Payroll reports (many payroll providers will calculate reports for this program)
Documentation showing the health insurance premiums paid by the business
Documentation of the sum of all retirement plan funding that was paid by the business
Do not include funding that came out of employee paychecks
For Sole Proprietors
2019 or 2020 Form 1040 Schedule C – whichever you used to calculate your loan
2019 or 2020 IRS Form 1099-MISC detailing nonemployee compensation received (box 7) – whichever year you used to calculate your loan
Invoice, bank statement, or book of record that establishes you are self-employed. If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS. You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or before February 15, 2020
Below are the key PPP updates recently provided by the SBA
PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs
PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations
The PPP provides greater flexibility for seasonal employees
Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount
Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
Has no more than 300 employees
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Wave 3 Paycheck Protection Program (PPP) Questions & Answers
Funding is available to existing Cambridge Savings Bank customers, both first-time, qualified borrowers and businesses that have previously received a PPP loan.
First-time borrower requirements:
Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
Sole proprietors, independent contractors, and eligible self-employed individuals
Not-for-profits, including churches and 501(c)(6) membership organizations
Under the CARES Act, any single business entity that is assigned a NAICS code beginning with 72 (including hotels and restaurants) and employs not more than 500 employees per physical location is eligible to receive a First Draw PPP Loan.
Businesses who have already received a PPP Loan may apply if:
Current economic uncertainty makes the PPP loan necessary to support ongoing operations
The loan you request is $2 million or less
The business has 300 or fewer employees, unless it satisfies the alternative criteria for businesses with a North American Industry Classification System (NAICS) code beginning with 72 and eligible news organizations with more than one physical location.
The business used or will use, the full amount of their first PPP loan
The business can show a 25% gross receipts decline in any 2020 quarter compared with the same quarter in 2019
Note: Other exceptions and restrictions may apply.
To be eligible for full loan Forgiveness, PPP Borrowers will have to spend a minimum of 60% of the funds on payroll over a covered period of either 8 or 24 weeks.
Other uses of the funds that will be potentially forgivable include (these expenses may not exceed 40% of the loan amount):
Rent, covered mortgage interest, and utilities
Covered worker protection and facility modification expenditures, including personal protective equipment to comply with COVID-19 federal health and safety guidelines
Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations
Covered operating costs such as software and cloud computing services and accounting needs
You can receive a loan amount of up to 2.5 times your average monthly payroll costs from either 2019 or 2020 payroll data, the same as the previous PPP round, but the maximum loan amount allowed for this round is now $2 million*. PPP Borrowers with NAICS codes starting with 72 (accommodation and food service) can receive up to 3.5 times their average monthly payroll costs up to $2 million* (*the maximum loan amount could be subject to affiliation rules).
Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019, through February 15, 2020.
The new law creates a simplified Forgiveness application process for both existing PPP loans as well as Second Draw loans of $150,000 or less.
This means a Borrower should receive Forgiveness if they sign and submit a one-page certification, and no other documentation is required. However, please note that this new simplified Forgiveness application has to be developed by the SBA and may not be available until later.
The SBA has confirmed that Economic Injury Disaster Loan (EIDL) advances will no longer be deducted from Paycheck Protection Program loan amounts. The SBA expects to address retroactive payment of previously deducted EIDL advances in forthcoming guidance. Cambridge Savings Bank will be reaching out to impacted borrowers as new guidance is received.
For Wave 3 of PPP, Cambridge Savings Bank will only be accepting new loan applications through our Application Portal. Paper application packages will not be accepted.
A Business Checking Account with the same name as the legal entity applying for the PPP loan is required. If you are a sole proprietor, you must have a checking account in your name. This is the account where your funds will be deposited.
Program Overview
The Paycheck Protection Program provides loans to encourage certain qualified small businesses to retain employees through the COVID-19 pandemic and includes loan forgiveness subject to certain conditions.
In reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations. As a borrower, you must certify in good faith that your PPP loan request is necessary. To further ensure PPP loans are limited to eligible borrowers in need, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate.
Borrower will need to apply to have the loan forgiven. In order for the loan to be forgiven, all employees must be kept on the payroll for 24-weeks and at least 60% of the loan funds must have been used to cover payroll costs. Any amount that is not forgiven will convert to a loan that must be repaid by the borrower.
Paycheck Protection Program (PPP) Loan Forgiveness Questions and Answers
Please take the time to familiarize yourself with the application forms and instructions noted below to assess which application is best suited for your forgiveness application process.
We recommend that you review this instructional video prior to logging in and exploring the portal. Please note, the new application (3508S) may not yet be reflected in this video. You may access the Forgiveness Request Portal by visiting cambridgesavings.lenderscooperative.com. Please follow the steps below to create an account and begin your PPP Loan Forgiveness Application process.
Type in your EIN or SSN (with no dashes) and the ten-digit SBA Loan Number (Note: this is not the same as your Cambridge Savings Bank loan number. You can get this loan number from your Relationship Manager). Then click Find your loan.
Verify SBA Loan Amount
Create an account, enter an email address and password. This will allow you to access your account to view current status, pending items, e-sign documents and review messages. Click Create Account.
If you have previously accessed the Portal:
Enter your email address
Enter your password
Click Login
A forgotten password can also be reset here
Review the three application types below:
Form 3508EZ applies to borrowers who meet any one of these three criteria:
Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees, or
Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return), or
Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
Form 3508S applies to borrowers who received a loan of $50,000 or less.
Form 3508 applies to all others and those borrowers that, together with its affiliates, received PPP loans totaling $2 million or greater.
Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):
Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount
Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):
Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements.
Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments.
Business utility payments: Copies of invoices and receipts, cancelled checks or account statements.
This list of documents required to be submitted is not all-inclusive. Please reference your specific loan forgiveness application for a complete list.
No. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.
However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan.
Multiple individuals within your organization may create individual portal logins to share access to the forgiveness application.
The PPP Forgiveness Portal is not compatible with Microsoft Internet Explorer. We recommend using browsers like Chrome, Edge, Safari or your preferred browser. In addition, you must be accessing the portal from a domestic VPN. If you still require assistance, please email Lenders Cooperative at support@lenderscooperative.com
Your internet browser may have auto-fill turned on and has mistaken some fields on the PPP application for information you frequently enter into forms. We highly encourage you to double check all data input into the PPP Forgiveness application prior to submission. This will save time and prevent delays in processing. It is also a safer practice to turn off auto-fill in your browser settings to limit the risk of your personal information inadvertently being entered. If you notice an incorrect entry in your forgiveness application after submission, please reach out to your relationship manager for assistance.
This will vary by applicant, based on which of the three applications are being utilized and what is required for documentation.
CSB will review your entire application to make sure that your submission is complete and that you have included all of the appropriate documents. If there are any problems or discrepancies, we will send you an email or call you with instructions. CSB may request additional information. If this happens your application status will change to “Need Additional Info.”
Please check the portal frequently to review your application status and any applicable messages. Your application status can be found in the left panel on the Status page of the portal. When the SBA review is complete, they will notify you along with Cambridge Savings Bank of their decision. You may hear from the SBA before Cambridge Savings Bank via the portal about your forgiveness status. Cambridge Savings Bank could take a few additional days to update our loan records and submit the final loan paperwork to you.
The bank has 60 days (after receipt of a completed application package) to finish a review and submit the application to the SBA. Once the bank reviews the application and approves it, you will receive an email to e-sign the application. This is a mobile-friendly process, if desired. Once the application is signed, the bank will submit the files to the Small Business Administration (SBA). The SBA then has up to 90 days to review the application and notify Cambridge Savings Bank. When the SBA review is complete, they will notify you along with Cambridge Savings Bank of their decision. You may hear from the SBA before Cambridge Savings Bank via the portal about your forgiveness status. Cambridge Savings Bank could take a few additional days to update our loan records and submit the final loan paperwork to you.
We recommend that you consult your CPA, Financial Advisor, or Payroll Company for guidance around any financial questions you may have. In addition, Cambridge Savings Bank will provide this complimentary service to our customers, so you have access to certified accountants inside the portal to assist you. Simply click on the orange “Ask an Accountant” button inside the portal to email specific PPP accounting related questions, and you can expect a response within 24 hours.
You must retain all other PPP documentation in your files for six (6) years after the date the loan is forgiven or repaid in full and allow authorized representatives of SBA or the Office of Inspector General to access these files upon request.
In conjunction with the Department of Treasury, the IRS has issued guidance regarding the deductibility of expenses for PPP loans in the 2020 tax year. We encourage businesses to contact their tax advisor in advance to be aware of how it may or may not affect your tax filing. To learn more, please visit: https://home.treasury.gov/news/press-releases/sm1187. You may also use the Ask an Accountant button inside the PPP Loan Forgiveness Portal to email specific accounting related questions to Wolf & Company PC. This is a complimentary service provided to our customers.
If you are uncertain about the legitimacy of a sender email, please contact us before responding. You must be diligent with whom you share your information. There are phishing attacks underway via email trying to trick you into sharing private financial information.
What Can Funds be Used For?
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 60% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
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.
Loans issued prior to June 5, 2020 have a maturity of 2 years. Loans issued after June 5, 2020 have a maturity of 5 years. All loans have an interest rate of 1%.
Payroll costs are capped at $100,000 on an annualized basis for each employee.
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 24 weeks after getting the loan. You will also owe money if you do not maintain your staff and payroll.
Loan Details and Forgiveness
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.
The PPP Flexibility Act was signed into law on June 5th, providing more time to qualify for forgiveness and greater flexibility for Paycheck Protection Program borrowers. The Small Business Administration and US Treasury will issue guidance and rules, along with a modified loan forgiveness application. The forgiveness application isn’t due until 24 weeks from when your PPP loan was credited to your CSB deposit account.
We are working on implementing a digital solution to assist with your forgiveness application process; we suggest that you hold off on taking any action; and we will be in contact and will share more when we have further details and guidance from the Small Business Administration (SBA).
Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.
For additional Small Business programs, guidance, and loan resources, please visit the SBA's website.
Frequently Asked Questions
PPP Flexibility Act was signed into law on June 5th, providing more time to qualify for forgiveness and greater flexibility for Paycheck Protection Program borrowers. The Small Business Administration and US Treasury will issue guidance and rules, along with a modified loan forgiveness application.
The forgiveness application isn’t due until 24 weeks from when your PPP loan was credited to your CSB deposit account. We are working on implementing a digital solution to assist with your forgiveness application process; we suggest that you hold off on taking any action; and we will be in contact and will share more when we have further details and guidance from the Small Business Administration (SBA).
As a reminder, during the first (6) six months (starting from the date your PPP loan was credited to your CSB deposit account), loan payments will be deferred for the forgiveness process to be completed.
For more information, please visit the SBA's website, sba.gov.
The PPP Flexibility Act was signed into law on June 5th, providing more time to qualify for forgiveness and greater flexibility for Paycheck Protection Program borrowers. The Small Business Administration and US Treasury will issue guidance and rules, along with a modified loan forgiveness application.
The forgiveness application isn’t due until 24 weeks from when your PPP loan was credited to your CSB deposit account. We are working on implementing a digital solution to assist with your forgiveness application process; we suggest that you hold off on taking any action; and we will be in contact and will share more when we have further details and guidance from the Small Business Administration (SBA).
As a reminder, during the first (6) six months (starting from the date your PPP loan was credited to your CSB deposit account), loan payments will be deferred for the forgiveness process to be completed.
For more information, please visit the SBA's website, sba.gov.
We will reach out to you within 2-3 business to confirm receipt of your complete application and required documentation. Loan processing time will vary depending upon volume, however, our goal is to approve all loans within 14 business days of receiving the complete application.
No. The SBA is waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).
You should use the proceeds from these loans on your:
Payroll costs, including benefits;
Interest on mortgage obligations, incurred before February 15, 2020;
Rent, under lease agreements in force before February 15, 2020; and
Utilities, for which service began before February 15, 2020.
Payroll costs include:
Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
State and local taxes assessed on compensation; and
For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 24 weeks after getting the loan. You will also owe money if you do not maintain your staff and payroll.
Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
Borrower will need to apply to have the loan forgiven. In order for the loan to be forgiven, all employees must be kept on the payroll for 24 weeks and at least 60% of the loan funds must have been used to cover payroll costs. Any amount that is not forgiven will convert to a loan that must be repaid by the borrower.
The forgiveness application isn’t due until 24 weeks from when your PPP loan was credited to your CSB deposit account. We are working on implementing a digital solution to assist with your forgiveness application process; we suggest that you hold off on taking any action; and we will be in contact and will share more when we have further details and guidance from the Small Business Administration (SBA).
1.0% fixed rate.
All payments are deferred for 6 months; however, interest will continue to accrue over this period.
If your PPP loan received an SBA loan number on or after June 5, 2020, your loan has a five-year maturity. If your PPP loan received an SBA loan number before June 5, 2020, your loan has a two-year maturity, unless the you and CSB mutually agree to extend the term of the loan to five years. The promissory note for the PPP loan will state the term of the loan.
Yes. There are no prepayment penalties or fees.
No. No collateral is required.
No. There is no personal guarantee requirement. However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.
As part of your application, you need to certify in good faith that:
Current economic uncertainty makes the loan necessary to support your ongoing operations.
The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
You have not and will not receive another loan under this program.
You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities.
All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
There are several other government and SBA relief programs available to businesses that you may wish to explore before determining the best solution for your business.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for disaster assistance.
Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
For information on additional Lending options, please click here.
SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please click here.
