Thank you in your interest in the Paycheck Protection Program. Please read the below for the latest information on the Program and what to expect.
PPP: Paycheck Protection Program
First Draw loan: These are first-time PPP loans. If you did not receive a PPP loan in 2020, and would like to apply for your first PPP loan now, you would be applying for a First Draw loan.
Second Draw loan: If you have already received a PPP loan from a previous round but are requesting a second loan or a re-advance on the first loan.
Who is eligible to apply for the next round of PPP loans?
PPP loans will be available to first-time qualified Borrowers and to businesses that previously received a PPP loan, if certain requirements are met.
First-time Borrower requirements:
If you already received a PPP loan, you may apply for a Second Draw PPP loan if:
501(c)(6) organizations, such as chambers of commerce, are also eligible, provided the business does not have more than 300 employees and do not receive more than 15% of the business’ receipts from lobbying activities.
How do I calculate my requested loan amount?
Businesses applying for a First or Second Draw PPP loan can receive a loan amount of up to 2.5 times the average monthly payroll costs in the one year prior to the loan or the calendar year. No loan can be greater than $2 million. PPP Borrowers with NAICS codes starting with 72 (lodging and food service) can receive up to 3.5 times their average monthly payroll costs up to $2 million.
Seasonal businesses may calculate their maximum loan amount based on a consecutive 12-week period between February 15, 2019 and February 15, 2020.
What qualifies as a seasonal business?
Seasonal businesses, for purposes of PPP loan application, are those that do not operate for more than 7 months in any calendar year, or those businesses with gross receipts for any 6 months in the prior year less than or equal to 33.33% of the gross receipts for the other 6 months of that year.
What documents are required to apply for a First Draw PPP loan?
What documents are required to apply for a Second Draw PPP loan?
Has the taxability of the PPP loan changed?
Yes, the new COVID-19 relief law specifies that expenses covered by the PPP loan will be tax deductible.
What are the requirements for potential Forgiveness of this next round of PPP funds?
To be eligible for full loan Forgiveness, PPP Borrowers will have to spend no less than 60% of the funds on eligible payroll costs during the Covered Period. The Borrower may select a Covered Period of 8-weeks up to 24-weeks.
The new legislation includes new cost categories eligible for Forgiveness. The following categories are eligible for Forgiveness:
Has PPP Forgiveness been impacted?
The new legislation creates a simplified Forgiveness application for loans of $150,000 or less. Any Borrower with a loan of $150,000 or less is eligible to use this form once released, even if they received a loan in 2020, as long as Forgiveness has not already been issued by the SBA.
Borrowers applying for Forgiveness using the new streamlined application will be required to sign and submit a one-page certification to Rockland Trust, which includes:
The Borrower must also attest that they accurately provided the required certification and complied with program requirements.
Borrowers are required to retain relevant records related to employment for four years and other records for three years, as the SBA may review and audit these loans after Forgiveness has been issued.
The new legislation also repeals section 1110 (e)(6) of the CARES Act, which requires PPP Borrowers to deduct the amount of their EIDL advance from their PPP Forgiveness amount. For those loans where Forgiveness has been received and an EIDL advance has been deducted, the SBA will automatically issue reconciliation payment to Rockland Trust for the previously deducted EIDL advance amount, plus interest through the remittance date.
Please stay tuned for more information regarding the latest Paycheck Protection Program round. We encourage you to visit our PPP webpage often. If you have further questions, please reach out to your relationship manager or call our Customer Information Center at 508.732.3826.
Thank you for working with Rockland Trust. Your relationship is truly important to us.
As a Borrower under the Paycheck Protection Program, it is your sole legal responsibility to comply with all laws and regulations applicable to Borrowers under the Small Business Administration Paycheck Protection Program (SBA PPP).
Rockland Trust urges SBA PPP Borrowers to closely review the latest SBA PPP law, regulations and guidelines (Guidelines). The Guidelines can be found on the Small Business Administration and the Department of Treasury websites: www.SBA.gov and www.Treasury.gov. Rockland Trust cautions you that the Guidelines are evolving. The Small Business Administration periodically updates the Guidelines. Some updates modify prior Guidelines, other updates provide further clarification.
Rockland Trust does not provide legal, tax, or accounting advice. Individual facts and circumstances vary from Borrower to Borrower which will impact any answers regarding any interpretation of questions. You should consult with your legal, tax, and accounting advisors to obtain advice regarding your specific situation. Our education materials and communications should be considered in connection with, and are not intended to replace or serve as a substitute for, your close review of the Guidelines, and legal, tax or accounting advice you are urged to obtain from your tax, accounting and legal advisors
Our communications are summaries or excerpts of the Guidelines, and may contain our opinions or interpretations of the Guidelines. There may be interpretations that are valid that differ from our interpretations and opinions. You are cautioned against placing undue reliance on our views and our educational materials.