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PPP Loan Origination

PPP Loan Origination

Date: 4/14/2021


Final Deadline for PPP Applications

New legislation known as the PPP Extension Act of 2021 has extended the PPP application deadline from March 31 to May 31. As such, Middlesex Savings Bank will continue to accept PPP applications from current business customers until Friday, May 7, 2021 or when funds are extinguished (whichever happens first).

If you are a current Middlesex Savings Bank business customer still wishing to apply for a PPP loan, you must submit a complete application, including all supporting documentation, via the portal on our website by 5:00 p.m. ET on Friday, May 7.
 
Our May 7 deadline provides us the best opportunity to review and process applications prior to the close of the program. However, we cannot guarantee that applications received by this deadline will be processed and submitted for final SBA approval.


Apply for a PPP Loan

If you are a current business customer wishing to apply for a first-draw or second-draw Small Business Administration (SBA) Paycheck Protection Program (PPP) loan, Middlesex Savings Bank is ready to help. We are currently accepting applications from current business customers using a new application portal, included below.

https://middlesexbank.streetshares.com/ppp3

Eligibility

Only current Middlesex Savings Bank business customers will be able to apply for a PPP loan with us. PPP loans will be available to first-time eligible Borrowers and to businesses that previously received a PPP loan.
 

Key PPP Updates

  • The SBA made an important note that in this round for both first-draw and second-draw PPP loans, there will be a time lapse between when the lender submits the PPP application information to the SBA  and when the SBA provides the SBA loan number to the lender.
  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs.
  • The PPP provides greater flexibility with regards to seasonal employers.
  • Borrowers may receive a loan amount of up to 2.5x the average monthly payroll costs in the one year prior to the loan, which in almost all instances the SBA considers to be calendar year 2019 or 2020.
  • Second-draw PPP applicants must calculate the loan amount based on the same period as the payroll documentation they submit, or have previously submitted, to us. If you are applying for a second-draw loan in the same amount or less as your first PPP loan, and you have already provided us 2019 payroll information, no additional payroll documentation will be required.
  • Entities in industries assigned to NAICS code 72 (Accommodation and Food Services) may receive loans of up to 3.5X average monthly payroll costs.
  • No second-draw loan can be greater than $2 million.
  • Borrowers of a PPP second-draw loan would be eligible for loan forgiveness equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, and additional eligible expenses including covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. The 60/40 cost allocation between payroll and non-payroll costs in order to receive full forgiveness will continue to apply.


Eligibility has been expanded to include:

  • Tax-exempt veterans organizations and 501(c)(19) organizations
  • Tribal businesses described in 31(b)(2)(C) of the Small Business Act
  • News organizations (those with North American Industry Classification System (NAICS) codes 511110 or 5151)
  • Sole proprietors, independent contractors, and eligible self-employed individuals
  • Not-for-profits, including churches and 501(c)(6) membership organizations, such as chambers of commerce, provided they do not have more than 300 employees and do not receive more than 15% of their funds from lobbying
  • Accommodation and food service operations (those with NAICS codes starting with 72) with fewer than 300 employees per physical location


If you have not previously received a PPP loan the parameters are:

  • The loan request must be $10 million or less
  • The business size can be 500 or fewer employees 
  • Your organization has to have been in operation on or before February 15, 2020
  • Please refer to the SBA website for all guidelines regarding a first-draw PPP loan.


If you already received a PPP loan, you may apply for another PPP loan (called a "Second Draw") if ALL of the following conditions apply:

  • The current economic uncertainty makes the PPP loan necessary to support ongoing operations
  • The loan you request is $2 million or less
  • The business has 300 or fewer employees
  • The business used, or will use, the full amount of their first PPP loan on or before the expected date on which the Second Draw PPP Loan is disbursed to you
  • The business can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019


Prepare for your application by gathering the following:

  • The EIN or TIN associated with the business applying for the loan. If you are applying for a second draw loan, the EIN or TIN must be the same as the one used in your first PPP loan application;
  • The accurate name of your business. This will be your business’s name as displayed on the Secretary of State website. Businesses listed on the Secretary of State’s website will need to provide a scanned copy or screen shot of the business’s Secretary of State summary page, demonstrating your business is in good standing. Sole proprietors, self-employed individuals, independent contractors, and individual partnerships do not need to provide a Secretary of State Summary page.
  • The amount and the SBA loan number of your first-draw PPP loan. You may find your SBA loan number on the copy of your first-draw PPP Note. If you need help finding your SBA loan number, please call our Information Center at 1-877-463-6287.
  • The names of the authorized signers for your business. Ensure all of them are able to provide their Social Security Number, mailing address, preferred email, and text-capable phone number for the Docusign process of the PPP application (this is especially important for charities).


Important information regarding payroll documentation: 

If you are applying for a second-draw loan in the same amount or less as your first PPP loan, and you have already provided us 2019 payroll information, no additional payroll documentation will be required.

If you are applying for a loan of greater than $150,000, you will need to provide documentation with your application to substantiate a revenue reduction of 25% or greater in 2020 relative to 2019. If you are applying for a loan of $150,000 or less, you will be required to provide this documentation on or before your request for forgiveness.

You may access our portal, powered by StreetShares, here:


https://middlesexbank.streetshares.com/ppp3


Please make sure to use the Google Chrome browser when launching the PPP application portal.

 

Creating an account:

  • Please complete the required fields to create your account. These include first and last name, business name, email and creation of a password.
  • The password you create must be at least 8 characters and must contain an uppercase and lowercase character, special character and number.
  • Select the first checkmark certification if you are applying for a second-draw PPP loan, whether you obtained your first PPP loan from Middlesex Savings or another lender. If you are applying for a first-draw PPP loan, please leave the first checkmark blank. This will ensure that you are presented with the correct application form.
  • All applicants must select the second checkmark in order to start the application. Once it is selected, the “Start Application” button will highlight and you will be able to click and access the Application Hub.
  • Please note that each application submission requires unique login credentials.  The same login credentials cannot be used for multiple applications.
 

Important information:

  • You may leave and come back into an application before it is submitted by clicking the “Save” button, found at the bottom of each step in the application. Your information will be saved and you will be able to continue to work on the application until you have filled out all of the necessary fields.
  • You may work on application sections in any order, and need not complete one section before working on another.
  • The “Submit” button will only appear once you have completed all of the necessary fields. Partial applications will not be able to be submitted for review.
  • There is a payroll expense calculation worksheet embedded into the application to assist you with calculating your maximum loan amount.
  • The question mark icons throughout the application contain borrower hints, which are meant to help guide you through the more difficult parts of the application.
 

What happens after a loan application is approved:

  • When your loan application is successfully submitted and approved by both Middlesex Savings Bank and the SBA, you will see a status update in the Application Hub.
  • You will notice that the approved loan amount is not included.
  • For your convenience and safety, upon notice of SBA approval we will prepare loan closing documents and facilitate a non-contact loan closing.
  • Closing documents will be sent to you via email. You will be able to sign and return your loan documents to us digitally.
  • Upon receipt of your signed loan documents, we will finalize the closing process and will deposit the funds directly into your Middlesex business account.
 

For technical assistance with the portal, please call us at 508-599-5555.

If you cannot find the information you need in the portal’s “Knowledge Center,” please contact us at: PPPApplicationSupport@middlesexbank.com.