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A MESSAGE FOR OUR CUSTOMERS REGARDING PAYCHECK PROTECTION PROGRAM RELAUNCH AS AMENDED BY THE ECONOMIC AID ACT:

January 11, 2021

The SBA has released New PPP First-Draw and Second-Draw loan applications.

Click HERE if you are  first time PPP loan applicant:

Click HERE if you are  second-draw PPP loan applicant:

Please refer to previous communications from us regarding the program. New Haven Bank is here to assist you. We will process your applications as expeditiously as possible. We are committed to fulfilling the needs of our customers and the community.

Please contact Bill Hice at 203-787-9513 or with any questions.

 

January 8, 2021

New Haven Bank has been here for ten years to meet the needs of our customers and our community. As a designated Community Development Financial Institution, (CDFI) the SBA will give priority to all CDFIs across the country.

We are anxiously awaiting the following from the SBA:

  • Borrower and Lender Applications
  • Technical Specification for system entry and processing

WHILE THE PROGRAM IS SCHEDULED TO RESTART ON MONDAY, JANUARY 11TH FOR FIRST TIME LOANS AND WEDNESDAY, JANUARY 13TH FOR SECOND-DRAW LOANS, THIS IS NOT WITHIN OUR CONTROL. WE WILL BEGIN TO PROCESS LOANS AS SOON AS THE APPROPRIATE APPLICATIONS AND SYSTEM ACCESS ARE ISSUED BY THE SBA.

The new round of PPP includes two types of loans: first draw loans for small businesses that did not take loans last year and second draw loans for businesses that received a loan but had reduced revenue in 2020.

The new round of PPP lasts until March 31.

  • For businesses taking either initial or second draw loans, the bill clarifies that they must have been in operation on Feb. 15, 2020.
  • Second draw loans will have a maximum loan amount of $2 million, and only employers with no more than 300 employees will be eligible.
  • To be eligible for the second draw loan, the small business must have used or plan to use the full amount of their first PPP loan. These businesses also must demonstrate reduced revenue during the pandemic.
  • Both initial and second draw loans for businesses with NAICS code beginning with 72 are eligible to apply for three-and-a-half (3.5) months of payroll; all other entities are entitled to apply for two-and-a-half (2.5) months of payroll expenses.

Additional PPP updates from the SBA include:

  • 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;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

The SBA also said 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 percent reduction in gross receipts between comparable quarters in 2019 and 2020

New Haven Bank is committed to fulfilling the needs of our customers as we did with the previous program. We will do everything within our control to address the needs of our community.

Sincerely,

Maureen A. Frank

President and CEO

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