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.
Sincerely,
The Spring Bank Team
