Support When You Need it Most

Paycheck Protection Program (PPP) – UPDATE
To our Small Business and Non-Profit Partners,

Spring Bank is committed to supporting the small business community during this time of crisis. Banks have been called upon to assist the government in getting much needed capital to the small business community to help support payroll and certain critical overhead costs. Spring Bank is answering the call. The ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ (the ‘‘CARES Act’’) was signed into law and we have started making loans, a portion of which will be forgiven, under the program.

You will need to submit the following information for your application to be complete:

1. Fully completed, initialed and dated Paycheck Protection Program Borrower Application Form, which is SBA Form 2483 SD (Please be sure to include your 9-digit zip code in the address field).

2. A worksheet showing how you calculated the loan amount.

3. True and accurate copies of documentary backup to show your actual payroll costs for the applicable measuring period (i.e., calendar 2019 or 2020, the 12-month period preceding the date of your application, or the applicable measuring period for seasonal businesses, if applicable). This generally includes payroll tax filings (i.e. Forms 940 and 941, payroll reports from third-party payroll processors, Schedule C if a sole proprietor) and other documents which demonstrate your actual eligible payroll costs.

4. A copy of the first page of your most recently filed Federal tax return.

5. Financial Statements to support the 25% reduction in Gross Receipts. We can accept the following:

   a. Quarterly financial statements for the entity. If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify the line item(s) that constitute gross receipts, the Applicant must annotate which line item(s) constitute gross receipts.

   b. Annual IRS income tax filings of the entity (required if using an annual reference period). If the entity has not yet filed a tax return for 2020, the Applicant must fill out the return forms, compute the relevant gross receipts value (see Question 5), and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.

6. A copy of the articles of formation/incorporation for your business entity, or other proof showing the date of formation of your business entity and that it is in good standing;

7. Please make sure that your form 2483 SD includes the required addenda listing, in detail, all owners of 20% or more of the equity interests in the borrower, as well as all “Affiliates” of the borrower. Guidance on the “Affiliation” rules of the SBA can be found (here); it is the Borrower’s sole responsibility to accurately disclose its Affiliates and include the employees of the Borrower and its Affiliates in determining employee count and eligibility in the CARES Act program. If you have questions about the Affiliate and employee aggregation rules, we strongly suggest that you engage legal counsel to advise you.

8. A copy of the driver’s license or valid US Passport of each signatory of the Form 2483 SD application, all “control persons” of Borrower as well as each owner of 20% or more of the equity interests in the Borrower;

We look forward to supporting our small business community and servicing your lending and banking needs in the future.


The Spring Bank Team

Paycheck Protection Program Second Draw Loans

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

Full Forgiveness Terms

Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.


Targeted Eligibility

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; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.


Maximum Loan Amount and Increased Assistance for Accommodation and Food Services Businesses

For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (click HERE for NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Ensuring Access for All

SBA continues to call upon its lending partners, including Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from community financial institutions starting on January 13, 2021. The PPP will open to all participating lenders for Second Draw PPP Loans shortly thereafter.

Visit or for more information and details, including the comprehensive program rules.