On Saturday, August 8th beginning at 10:00pm, Business Online Banking will be temporarily unavailable as we perform scheduled maintenance. Business Online Banking is expected to be back up and running by 12:00am, on August, 9th. We apologize for any inconvenience this may cause.
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.
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 have a maturity of 2 years. Loans issued after June 5 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. Due to likely high subscription, it is anticipated that not more than 40% of the forgiven amount may be for non-payroll costs.
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.
Yes. Cambridge Savings Bank is a participating SBA 7(a) lender for the Paycheck Protection Program, as outlined in the Coronavirus Aid, Relief, and Economic Security(CARES) Act. Due to the high volume of applications anticipated, this program is currently available to existing Cambridge Savings Bank business customers only.
PLEASE NOTE: We will continue to accept applications through Wednesday, August 5th or until the PPP funds are depleted. Applications will be submitted to SBA based on a chronological basis of when applications were received by the bank. We will do our best to support as many customers as possible while the program is still available and continue to update our customers regularly on their status. We do expect the funding to go quickly and will keep our website updated with current information on availability and as we receive other guidance.
We are no longer accepting PPP Loan applications.
We are no longer accepting PPP Loan applications.
We are no longer accepting PPP Loan applications.
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).
Only one.
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.
In 2 years. Note that all loan terms will be the same for everyone.
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.
