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Paycheck Protection Program Loan

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Paycheck Protection Program Loans

Thank you for trusting Newburyport Bank with your Small Business Administration's (SBA) Paycheck Protection Program (PPP) loan. It is a privilege to serve you and to help your business navigate these unusual times.

As you are aware, the regulatory guidance for the SBA's PPP loans is ever-changing. As the guidance evolves, our team works diligently to synthesis the changes and communicate them to you. Below is information regarding the forgiveness process and additional resources you may find helpful.

On Wednesday, February 24, 2021, at 9 am, the SBA will establish a 14-day PPP loan application period exclusively for businesses and nonprofits with fewer than 20 employees.
This exclusive application is the Biden-Harris Administration taking one step further to demonstrate their commitment to racial and gender equity, reaching low and moderate-income, rural, urban, and other underserved areas. During this 14-day window, SBA will reject any new applications from borrowers that have 20 or more employees. However, eligible businesses with 20 or more employees are encouraged to continue preparing their PPP applications using our online application portal. We can have it prepared for submission to the SBA once the exclusivity period is over.

For additional information please visit

Small Business Administration (SBA), Paycheck Protection Program (PPP) Update January 15th, 2021– Accepting Applications

The SBA has announced the reopening of the Paycheck Protection Program for Tuesday, January 19th. Newburyport Bank will begin accepting applications today, January 15th.

Please CLICK HERE to apply for a first-round or second-round PPP loan.

For a video tutorial of the application process, please CLICK HERE.  

The application will detail specific information on eligibility, calculating loan amounts, and required documentation.

If you need additional guidance please refer to the helpful links below, or contact your financial professional.   

PPP application tips:

  • Please be sure to sign the SBA form 2483 that will be e-mailed to you when you reach the end of your application, then, go back into your portal to click “submit” in order to complete your application.
  • Please be sure to complete each application page in order as information carries through as your application progresses.

Helpful Links


Top-line Overview of PPP First Draw Loans

Top-line Overview of Second Draw PPP Loans

Forgiveness Process

Newburyport Bank is utilizing a software solution to assist our customers in the PPP forgiveness process. All Newburyport Bank PPP loan applicants should have received an individualized link via email. This link is unique to each PPP loan. By following this link, the PPP applicant will be guided through a series of questions to determine the appropriate application. The entire forgiveness process will be done electronically with step-by-step guidance throughout the application.

If you have not received your PPP Forgiveness link or have specific questions, please email

As always, our team is here to assist you. 


PPP Updates

Small Business Administration (SBA), Paycheck Protection Program (PPP) Update – January 8th, 2021

The SBA has released the rules for the upcoming PPP round but has not yet released an application or timeline on when applications can be submitted. We will provide an additional update once the program is live. Once the program is available, we will post an application and digital submission process on our website.


The following has been provided as additional guidance and support in anticipation of the program. These points can always be amended or clarified with additional SBA guidance. We suggest staying up to date by reviewing the latest guidance available from the SBA (  and US Treasury (, before deciding to apply to the program.



One of the criteria for receiving a second PPP loan is showing a 25% gross revenue reduction in at least one quarter in 2020 compared to the same quarter in 2019. If quarterly data cannot be provided, Borrowers can elect to show a 25% annual gross revenue reduction by providing their tax returns. It is assumed that the company prepared financials will be acceptable to validate the reduction in quarterly revenue.


Calculating Loan Amount:

The method in which a maximum PPP loan is calculated is relatively unchanged from the original program. The loan amount is based on 2.5 months of the average payroll costs. Borrowers can elect to use either their 2019 payroll costs or their 2020 payroll costs. Only Borrowers with a NAICS code listed on their tax return starting with 72 can use 3.5 months of average payroll.


Required Documentation:

Payroll costs need to be verified at the time the application is submitted. If you are a returning PPP customer, you may choose to apply for the same loan amount as round 1. You would not need to submit any payroll documentation unless the Bank needs additional clarification.


All applicants will need to substantiate their 25% revenue reduction at some point. Loans over $150,000 will need to submit verification of a 25% revenue reduction at the loan application time. Loans under $150,000 are required to submit proof of a 25% revenue reduction at the time of loan forgiveness; these applicants are encouraged to do so at the time of application to ensure eligibility to the program.


Loan Forgiveness:

Borrowers do not have to complete their loan forgiveness application before applying for a second PPP loan. The deadline to submit the loan forgiveness application is 10 months after the end of the covered period. The covered period is upwards of 24-weeks from the date the PPP funds were deposited.


We strongly suggest forecasting your eligible expenses to ensure that you will be able to use the PPP proceeds following the SBA’s rules.


Use of Funds:

To receive full loan forgiveness, 100% of the proceeds need to be used for eligible costs, with at least 60% of funds used exclusively for payroll costs. Eligible costs include:

  • employee payroll costs
  • owner’s compensation replacement
  • interest payments on business debt obligations
  • business utilities
  • covered operations expenditures, defined as business software or cloud computing expenses for business operations, product or service delivery, payroll processing, payment, tracking, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records, and expenses.
  • Covered property damage, defined as costs relating to damage and vandalism or looting due to public disturbances in 2020 that were not covered by insurance or other compensation.
  • Covered supplier costs, defined as supplier payments that are essential to the borrower’s operations and were made either (1) according to a contract, order, or purchase order in effect before the covered period, or (2) concerning perishable goods, according to a contract, order, or purchase order before or during the covered period.
  • Covered worker protection expenditures, defined as operating costs or capital expenditures incurred by a borrower, during the period beginning on March 1, 2020, and ending upon the expiration of the presidential national emergency declaration concerning COVID-19, to facilitate the adoption of business activities to comply with applicable laws and guidance relating to COVID-19. For example, this could include expenditures on drive-through improvements, ventilation or filtration systems, physical barriers, expansion of business space, the establishment of health screening capabilities, or other assets as determined by the SBA in consultation with HHS and the Secretary of Labor, as well as personal protective equipment (PPE).

Small Business Administration (SBA), Paycheck Protection Program (PPP) Update – December 22, 2020

Congress passed a $900 Billion COVID relief package, including another round of Paycheck Protection Program funding. Once the President signs this into law, the SBA and US Treasury will work to release the final guidance and rules for the new round of funding (the Bill provides 10 days for this process to be completed).

Newburyport Bank will participate in this program again. We will be utilizing a web-based software solution to facilitate and expedite the PPP application process. The Bank is currently waiting for the SBA to update the current SBA forms for this round of funding. Once these forms are available to us, we will begin accepting applications.

Please continue to check our website for updates and the timing of when the program is open, and our bank is accepting applications.


Small Business Administration (SBA), Paycheck Protection Program (PPP) Update – June 5, 2020

On Friday, June 5, 2020, President Trump signed a new bill amending certain terms related to the SBA's PPP. This amendment creates greater program flexibility in certain key areas, as outlined below.

  • Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
  • Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount used for payroll costs.
  • Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020, and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
  • Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
  • Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
  • Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
  • In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved.



Below is the link to the current SBA PPP FAQ.






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