Paycheck Protection Program
This information is based on currently available information and is subject to change. We are committed to keeping you informed as we receive additional guidance.
LATEST UPDATE:
June 2, 2020
- We are only accepting new PPP applications until midnight of June 15, 2020.
- Resubmissions for additional funds will not be accepted.
- Current PPP Customers, please review the updated Forgiveness Phase section below for new FAQs and the recently released application.
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Key Updates for PPP
To keep you up to date, we will provide chronological updates for you here.
- May 26, 2020
At this time, we are only accepting new PPP applications.
To comply with the SBA’s current requirements to collect payment and loan information by May 29, 2020, we are no longer accepting resubmissions for additional funds as of 1:00 P.M. on May 26, 2020.
- May 18, 2020
We are accepting new applications beginning Monday, May 18, 2020. Only Crest Savings Bank loan and deposit customers will be eligible to apply. See the Application Process Section below for details.
- May 14, 2020
We will begin accepting new applications beginning Monday, May 18, 2020. Only Crest Savings Bank loan and deposit customers will be eligible to apply. See the Application Process Section below for details.
- April 29, 2020
We have ceased acceptance of any new applications effective 8:00 P.M. on April 23, 2020.
Our PPP Team is still working around the clock to submit applications we have on hand prior to April 23 to the SBA.
Customers will be notified by the end of the business week as to the status of their applications.
- April 26, 2020 - A message from our Anthony DeSalle, President & CEO
Our Paycheck Protection Program (PPP) loan team has worked closely with many of you over the last few weeks as we navigate these uncertain times together. Above all, what remains certain is the commitment from Crest Savings Bank to support the small businesses in Cape May County.
Our PPP loan team has put forth a tremendous effort to assist our customers in preparing their PPP loan applications for submission to the SBA. In fact, starting on Monday April 27th our PPP loan team members are prepared to work around the clock to submit PPP applications to the SBA on behalf of our customers.
Please know that our team of dedicated professionals will make every effort to submit the PPP loan applications that we have received prior to 8pm on April 23rd. However, given the anticipated demand for PPP loans across the country and the limited funds available from the SBA, we cannot guarantee that every qualified applicant will receive proceeds.
- April 23, 2020
PPP UPDATE:Crest Savings Bank has been taking applications with the expectation of additional funding for the PPP program. This has generated an unforeseen influx of customer applications. With regret, we have to cease acceptance of any new applications effective 8:00 P.M. on April 23, 2020, as our team has been diligently working around the clock to prepare and efficiently process the requests that we have on hand, now that the additional funding has been approved.
For those that have previously submitted an application with us, please note our PPP team will let our applicants know if their submissions have been accepted by the SBA. We are expecting that the competition for what appears to be insufficient funding will be widely reported.
- April 17, 2020
PPP Update: We are opening the PPP application process with the expectation that more funding will be authorized. Only Crest Savings Bank's business customers with a deposit or lending relationship as of March 1, 2020 will be eligible to apply through us.
- April 7, 2020
We are currently finalizing the administrative aspects of the program. We will announce the application acceptance period as soon as we are notified. Read our correspondence here>>
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Additional Information
Paycheck Protection Program (PPP) at a glance
- What is the program?
Paycheck Protection Program (PPP) Loans are managed by the Small Business Administration (SBA) and have limited authorized funding. The SBA has indicated that loans under the PPP will be made available on a “first come first served” basis.
- Who is eligible?
Borrowers are broadly eligible if they have 500 or fewer employees, or are certain businesses that meet SBA size standards. Additionally, 501(c)(3) nonprofits, 501(c)(19) veterans organizations, and certain tribal business concerns qualify for PPP loans. Borrowers may also be sole proprietors, independent contractors, or self-employed. Borrowers must have been in operation on February 15, 2020, and employed either salaried employees subject to payroll taxes or paid independent contractors; keep in mind there are special rules that permit seasonal businesses to participate. Further, borrowers must certify they meet the criteria above, were impacted by current economic uncertainty, and they will use the funds for allowable uses defined in ‘Loan Terms’ below. Borrowers must also provide the relevant documentation as part of this certification. Finally, borrowers must certify the information they provide is accurate.
- How does loan forgiveness work?
After disbursement of the loan, a borrower is eligible for loan forgiveness subject to PPP guidelines. Not more than 25% of the loan forgiveness request maybe attributable to non-payroll costs. A borrower will apply to a lender by submitting all the relevant paperwork, at which time a lender will have up to sixty days to approve or deny the application for forgiveness.
- The amount of forgiveness of the PPP loan depends on my payroll costs over an eight-week period; when does that eight-week period begin?
The eight-week period begins on the date we make the disbursement of the PPP loan to you. Crest Savings Bank must make the disbursement of the loan to you no later than ten calendar days from the date of loan approval.
- What are the loan terms?
These first-come, first-served loans are offered until June 30, 2020, or until the program runs out of funds. Loans are capped at the lesser of 250% of a borrower’s average monthly payroll costs, or $10 million. Payroll costs include, but are not limited to, salary, paid leave, medical, and healthcare. Further, salary for employees making more than $100,000 is capped at that level for the calculation of loan size. All loans have a 1% interest rate and a two-year term. Loans are 100% guaranteed by the SBA. E-signatures or e-consents may be used. Loan payments may be deferred for up to 6 months.
- What can the loans be used for?
PPP loans may be used to pay for payroll costs, mortgage interest obligations, rent obligations, utilities, and any other interest payment on debt obligations accrued before February 15, 2020. SBA requires 75% of the loan to be used for payroll costs, while the remaining 25% can be used for the other expenses. Funds used for purposes other than those outlined above must be repaid by the borrower.
- Can I apply for more than one PPP loan?
No. The Government limits each eligible borrower to only one PPP loan. This means that if you apply for a PPP loan you should consider applying for the maximum amount that you are eligible to receive.
- Will there be any fees?
SBA will not collect any participation or pre-payment fees from either the borrower or the lender.
- What is the timing of disbursement?
Timing will be dependent on your accurate completion and submission of information to Crest Savings Bank and volume of requests. Once Crest Savings Bank approves your loan, the SBA registers it and an executed promissory note is delivered to Crest Savings Bank, funds can be disbursed as fast as possible by wire transfer or ACH payment directly into your Crest Savings business deposit account.
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Information from the US Department of Treasury
The Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). This document will be updated on a regular basis.
PPP - FAQs
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Forgiveness Phase
These times are unprecedented. The regulations relating to the PPP Program are being defined and changing at an incredible rate. Upon funding, it is important to continue to monitor the forgiveness definitions and the impact of the ever changing regulations. Please stay in touch and look for our Forgiveness Section to keep informed of the regulations as they are issued and updated.
As of May 14, 2020
Borrower may apply to Lender for forgiveness of the amount due on this loan in an amount equal to the sum of the following costs incurred by Borrower during the 8-week period beginning on the date of first disbursement of this loan:
- Payroll costs.
- Any payment of interest on a covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation).
- Any payment on a covered rent obligation.
- Any covered utility payment.
The amount of loan forgiveness shall be calculated (and may be reduced) in accordance with the requirements of the Paycheck Protection Program, including the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (P.L. 116-136). Not more than 25% of the amount forgiven can be attributable to non-payroll costs. If Borrower has received an SBA Economic Injury Disaster Loan (“EIDL”) advance, then said advance amount shall reduce the amount of loan forgiveness.
As we received more information for loan forgiveness, we will share it with you here.
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Additional Resources.
The following resources are not facilitated by Crest Savings Bank. They are stand-along programs. Applications are submitted via the sponsored agency. No bank intervention is required.
- SBA
Economic Injury Disaster Relief (EIDL). Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
Go to sba.gov
- New Jersey Economic Development Authority
NJEDA announces expansion of grant program for businesses impacted by COVID-19. Funding available for home-based businesses and sole proprietorships, some funds reserved for businesses in low-income communities
View Release Go to NJEDA.com
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Application Process
Only Crest Savings Bank's business customers with a deposit or lending relationship as of March 1, 2020 will be eligible to apply through us. Please note this loan will be processed and a decision will be made by SBA. Crest Savings Bank is only a gateway to facilitate your request. Although we may receive additional guidance from the SBA, our current understanding of the program is below.
The most efficient application process is completely electronic. Given the significant volume of loan applications, it is important that you complete your application accurately with the required documents. Inaccurate and/or incomplete documentation will impact how quickly we can process the application. Please note that customers should NOT go to the Branches as they will not be able to assist with the Payment Protection Program application process.
- At this time, we are only accepting new PPP applications until midnight on June 15, 2020.
- To comply with the SBA’s current requirements to collect payment and loan information by May 29, 2020, we are no longer accepting resubmissions for additional funds as of 1:00 P.M. on May 26, 2020.
Required Documentation
To begin the PPP loan application process, please complete and send the following required documentation to support certification that, as of or around February 15, 2020,
- you had employees for whom you paid salaries and payroll taxes (or paid independent contractors), OR
- you are an independent contractor.
Please note, for seasonal businesses, we will consider whether a seasonal borrower was in operation
- on February 15, 2020 OR
- for an 8-week period between February 15, 2019 and June 30, 2019.
Email all documentation to ppp@crestsavings.com.
Due to overwhelming demand from the SBA, an application submitted to Crest Savings Bank does not guarantee you will receive a PPP loan.
- A completed application
- Please specify period used and include required documentation based on type of business in your reply:
- 2019 IRS Quarterly 940, 941 or 944 payroll tax reports;
- 1099s for independent contractors; OR
- For sole proprietors, Payroll processor records, Payroll tax filings, Schedule C, Other income and expense documents if none of the above is available for the last 12 months or for 2019. The documentation provided must be from the year ended 2019 or from the last 12 months; 2018 Schedule Cs cannot be used; if you have not done your 2019 tax returns, you will need to provide an internal income statement for us to document income.
- Payroll reports for a consecutive twelve-month period, which will show the following information:
- Gross wages for each employee, including officer(s) if paid W-2 wages.
- Paid time off for each employee
- Vacation pay for each employee.
- Family medical leave pay for each employee.
- State and local taxes assessed on an employee’s compensation.
- Seasonal employers may determine their maximum loan amount for purposes of the PPP by choosing the average total monthly payments for the 12-week period beginning February 15, 2019, or at the election of the eligible borrower, March 1, 2019, and ending June 30, 2019 OR may alternatively elect to determine their maximum loan amount as the average total monthly payments for payroll during any consecutive 12-week period between May 1, 2019 and September 15, 2019.
- Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan.
Include all employees and the company owners.
- Document the sum of all retirement plan funding that was paid by the company owner(s) (does not include funding that came from the employees out of their paycheck deferrals).
- Include all employees, including company owners.
- Include 401K plans, Simple IRA, SEP IRAs.
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