Prior to starting your application, you should collect the following:

• 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%
• Certificate in Good Standing
• 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

For Sole Proprietors

• 9 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  

• 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: o Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses o Has no more than 300 employees o Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The SBA also announced four additional changes to open the PPP to more underserved small businesses than ever before. While these changes are being implemented, the SBA will work with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. And, the SBA will strengthen its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. The SBA will:

• Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants;
• Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal;
• Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP; and
• Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

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.

If you are providing quarterly financial statements (showing one calendar quarter in 2019 compared to the same calendar quarter in 2020), then you must sign and date the first page of the statements, and initial all other pages.

If you are providing quarterly or monthly bank statements, then you must note which deposits listed on the bank statement reflect gross receipts.

If you are referencing annual revenue decline (as opposed to one calendar quarter in 2019 compared to the same calendar quarter in 2020), then your annual returns are required.

However:

• If you have not yet filed a tax return with the IRS for 2020, you must complete the return forms, calculate the relevant gross receipts value, and sign and date the return
• If you have filed your tax returns, you must submit signed copies of those returns

You may view the full guidance from the SBA here.

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.

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.

You may view the full guidance from the SBA here. 

Yes.

Partners and partnerships are NOT included in the revisions. Single-member LLCs that file Schedule C are included. Qualified joint ventures as defined by the IRS are included:

• The only members are a married couple who file a joint return
• Both spouses materially participate in the business
• Both spouses elect not to be treated as a partnership
• Other limitations apply, see IRS definition for full details.
• Forms 2483-C and 2483-SD-C provide instructions for number of employees and income

More flexibility

• For borrowers that file IRS Form 1040 Schedule C:
  • “Income” now encompasses borrower’s net income and gross income to account for fixed and other business expenses
  • The revised definition of income allows revisions to the loan amount calculation

New Application forms

• SBA Form 2483-C or 2483-SD-C: only for Schedule C Filers using gross income
• SBA Form 2483 or 2483-SD: if using net income to calculate loan amount OR if using Schedule F (either gross or net income)

The new definition of owner compensation allows applicants to use either net profit or gross income in its calculation of total payroll costs.

• Schedule C Filer – no employees:
  • owners compensation is either gross income (line 7) OR net profit (line 31) 
• Schedule C Filer - with employees:
  • Net profit (line 31) OR o Gross income (line 7) MINUS
    • Line 14 (employee benefit programs)
    • Line 19 (pension and profit-sharing) and
    • Line 26 (wages less employment credits)

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

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.

Second Draw PPP loan application approvals are often taking longer than the first round of funding. In this new round of PPP applications, there is a step in the SBA approval process that was not previously in place. For new applications, CSB collects and reviews all of the borrower's necessary documentation before submission to the SBA. Once the SBA has received this documentation, they are taking a new and additional due diligence step, resulting in a longer approval process. The SBA has announced several steps that it will take to ensure that second-draw PPP loans can be processed efficiently. Our Cambridge Savings Bank team is closely monitoring any changes to this process and will continue to update our customers when new information is available. If you have any questions about your loan, please reach out to your Relationship Manager.

The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation and resiliency. This more targeted advance grant program is available to businesses that received a first-round advance grant in 2020 that was under the program’s limit of $10,000, and to those who applied but received no funds because the program’s funding was already spent. SBA’s latest guidance tells small businesses to wait for SBA to contact them if the business is eligible (sba.gov email addresses only). Applicants do not need to take any action at this time.

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.

also owe money if you do not maintain your staff and payroll.

1.0% fixed rate.

There are no prepayment penalties or fees.

As a valued customer, CSB will automatically enroll you in this SBA Debt Relief Program, there is no action needed on your part.

Once you are enrolled, the SBA will begin covering payments of the principal and interest on 7(a) loans for up to three (3) or eight (8) consecutive months, depending on industry type.

Please note that your scheduled automatic payments will be turned off during this time.

Any payments received from outside the SBA during this 3 or 8-month period will be deposited to your CSB deposit account. If you wish to have these additional payments applied to your loan principal balance, please email SBASubsidyLoanPayments@cambridgesavings.com.

As a valued CSB customer, you will receive the second round of payments after the initial six (6) month payments have been applied. 

If your monthly loan payments are currently being partially or fully deferred with CSB, we will automatically enroll you in the SBA three (3) or eight (8) month Debt Relief period, depending on industry type. At the end of this three (3) or eight (8) month period, your Relationship Manager will reach out to you to discuss additional payment relief options. Please contact us if you would like to opt out of the Debt Relief Program by emailing SBASubsidyLoanPayments@cambridgsaving.com.

On December 1, the Small Business Administration (SBA) released public data about Paycheck Protection Program (PPP) borrowers—specifically, the borrowers’ names, addresses, exact loan amounts, and who their PPP lenders were. The release came as a result of a lawsuit brought by media organizations seeking the data.

Cambridge Savings Bank did not publicly disclose the data and played no role in the court decision. Our commitment to protect your privacy is paramount, and we follow all applicable laws and regulations, as well as our identity verification process to protect our customer’s financial information.

Unfortunately, we have heard that some third parties are using the information from the court-ordered data release to market themselves to PPP customers. These communications may reference Cambridge Savings Bank and may even imply that we already have some kind of relationship with these third parties.

Please be very wary of responding to unsolicited communications or sharing information about your PPP loan with any business or individuals not affiliated with Cambridge Savings Bank. If you have any doubt questions, please call us directly.

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. To view our video tutorial for Form 3508S please click here Form 3508S Video Tutorial
 

• FORM 3508 PPP Forgiveness Application and Instructions
• FORM 3508EZ PPP Forgiveness Application and Instructions
• FORM 3508S Simplified PPP Forgiveness Application and Instructions

   

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.

1. 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.
2. Verify SBA Loan Amount
3. 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 $150,000 or less. To view our video tutorial for Form 3508S please click here Form 3508S Video Tutorial

Form 3508 applies to all others and those borrowers that, together with its affiliates, received PPP loans totaling $2 million or greater.

For loans under $150,000, no documentation is needed. For all others, you will need to provide the following:

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.

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.

The forgiveness application should be filed before the end of the 10 (ten) month deferment period. The deferment begins after the 24 (twenty-four) week covered period. Your covered period begins at the date of loan disbursement. 

For more information, please visit the SBA's website, sba.gov.

The SBA has confirmed that Economic Injury Disaster Loan (EIDL) advances will no longer be deducted from Paycheck Protection Program loan amounts. Cambridge Savings Bank will be reaching out to impacted borrowers directly as we receive the retroactive EIDL advance payments from the SBA.