SBA PAYCHECK PROTECTION PROGRAM UPDATE
The Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (the “Act”) was recently signed into law to provide continued assistance through the Paycheck Protection Program (PPP) to individuals and businesses that have been financially impacted by the pandemic. Institution for Savings will once again be participating in the program for the benefit of our business customers.
Update on Economic Impact (STimulus) PaymentS
Under the new COVID relief bill recently signed into law, individuals with incomes up to $75,000, heads of household with incomes up to $112,500 and families with incomes up to $150,000 will receive a second round of Economic Impact Payments (EIPs) in the coming days. For most consumers, the IRS will calculate and automatically send payments via direct deposit into bank accounts. The IRS already has direct deposit information for millions of Americans from the first round of EIPs in April and the agency provided internet portals that allowed recipients to register their banking information to receive payments electronically. We expect them to offer this service again, but we are awaiting official confirmation. For the most up-to-date information, consumers should visit www.IRS.gov/coronavirus
OUR OFFICE LOBBIES & DRIVE-UPS ARE OPEN!
Effective March 15th, all of our office lobbies and drive-ups are open regular hours with two exceptions:
- Our Main Office lobby is temporarily closed due to renovations; please call 978-462-3106 to schedule an appointment for transactions that cannot be done at the drive up.
- Our Boxford Office remains closed until further notice.
- It is recommended that you have your stimulus check deposited directly into your checking or savings account so that you have access to the funds faster than if you wait for a paper check to arrive. If you do receive a paper check, consider depositing it as soon as possible after you receive it. Remember: the safest place for your money is in your bank
- If you have not already done so, set up and utilize deposit alerts so that you are notified immediately when your deposit is available. To do so, log into Online Banking, click on the account where your check will be deposited and select Alert Preferences. Click on + Alert; choose Transaction and then Credit.
- During the last stimulus event, the government provided a link to “check the status” of your payment. We will post this link as soon as it is made available to us.
SBA Paycheck Protection Program (PPP)
On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (the “Act”) was signed into law to provide continued assistance through the Paycheck Protection Program (PPP) to individuals and businesses that have been financially impacted by the pandemic. Institution for Savings will once again be participating in the program for the benefit of our business customers.
This program has been extended through May 31, 2021. Given that earlier rounds of PPP funding have been exhausted quickly, we encourage you to apply as soon as possible.
If you did NOT apply for or receive a PPP loan in the first round, please call us at 978-462-3106 ext. 1706 for instructions on how to proceed. If you did receive a first-round loan from us, read on.
A second-draw PPP loan is generally subject to the same terms, conditions and requirements as a first draw loan. Among other criteria, eligible borrowers minimally must meet the following criteria:
- Have received a first-draw PPP Loan.
- Have used, or will use, the full amount of the first loan on or before the second loan is disbursed to the borrower.
- Have experienced and can demonstrate at least a 25% reduction in revenues for one quarter in 2020 over the same quarter in 2019.
- Employs 300 or fewer employees.
- Is not permanently closed.
Businesses can borrow up to 2.5 times their average monthly payroll, only counting annual pay up to $100,000 per employee, or 3.5 times their average monthly payroll if assigned a NAICS code beginning with 72 at the time of disbursement.
Money must be used to pay payroll (but not federal payroll taxes), health insurance, retirement benefits, rent, utilities and interest on debt for an 8 to 24-week period after the loan is granted. To receive forgiveness, borrowers will have to either continue to pay employees or re-hire employees that were furloughed and provide documentation for payroll and payments made on mortgage loans, rent, utilities etc.
If you plan to apply, you should provide us with the following information (Incomplete applications will not be accepted):
- Complete SBA Second-draw PPP application form 2483-SD.
- Verifiable payroll information, including back-up documents to the calculations such as your 941 quarterly payroll records (if not already submitted with the first PPP loan).
- 2019 Federal Income Tax Return (if not already submitted with the first PPP loan).
Please use our secure mail system to send all information:
To send documents securely, go to our Secure Document Upload page.
- Click on Upload Secure Documents.
- Complete required fields and select Paycheck Protection Program as the Recipient in the drop-down menu.
- Attach the completed application and required documents by selecting Choose a File. Additional files can be uploaded by selecting Add Another File.
- Once all documents have been attached, enter the Captcha code and then click Send Document to upload. Your files will automatically be securely encrypted.
If you have any questions, please call 978-462-3106 ext. 1706.
We have several options to assist you, including the opportunity to defer payments on your loan(s) for up to 90 days, or more if necessary. Since many customers have asked, we wanted to clarify that deferred payments are expected to be paid in full at some point in the future. We will work with you on these payment details.
If we escrow your real estate taxes, homeowner's insurance and/or flood insurance, please be advised that you will be required to make those payments. If we learn that any city, town or insurance company offers a payment relief plan, we will assist you accordingly.
If you would like to discuss these, or any other payment relief options in greater detail, please see contact information below:
Commercial Loan Customers:
Please contact your personal loan officer
call Assistant Vice President Lisa Kriz at 978-225-1306 OR
Please call 978-225-1311
OR email us.
If you have both a commercial loan and a residential loan with us, your personal commercial loan officer will assist you with both loans
- 24-hour ATMs at all locations
- Night depositories at all locations (except Boxford)
- Online/mobile banking and bill pay
24-hour automated telephone banking at 1-800-437-6703
Mobile Wallet (Apple Pay®, Google Pay, and Samsung Pay)