In general, the amount of the loan can be up to 2.5 times your average monthly payroll (up to a maximum of $10 million).

• Independent contractor payments do no count toward monthly payroll. Independent contractors and those who are self-employed can begin applying for PPP loans on their own starting April 10.

What counts as payroll costs? And how do I calculate it?

What Can Be Forgiven?

The sum of the following costs incurred during the first 8 weeks of the loan are eligible for forgiveness:

• Payroll costs (including benefits and additional wages paid to tipped workers) - Must account for at least 75% of loan expenditure.

• Interest payments on covered mortgage obligations

• Rent payments

• Utility payments

View specifics on forgiveness terms & limits here.

In order to be eligible for the PPP, your business must be affected by COVID-19, you had to be in operation on February 15, 2020 with paid employees/contractors, and you have to be an eligible small business or organization (typically, no greater than 500 employees).

See more details.

The following are allowable uses of covered loans:

• Payroll costs (at least 75% of the loan must go toward this use)

• Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums

• Employee salaries, commissions, or similar compensations

• Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation)

• Rent (including rent under a lease agreement)

• Utilities

• Interest on any other debt obligations that were incurred before February 15, 2020

For a covered PPP Loan, no personal guarantee or collateral will be required.

• The interest rate will be 1.0%.

• For any non-forgivable remainder of the PPP loan, principal and interest payments are deferred for 6 months.

Essex Bank will be accepting applications starting on April 6, 2020.

1. Gather these Required Documents

2. Download this Application

3. Complete & Save the Application

4. Send a secure Email to PPP@EssexBank.com with the following attached items:

   • Your fully completed Application

   • All of the Required Documents

If you apply through more than one financial institution, it may result in your application being declined.

• Essex Bank will send an email confirmation of your application.

• Your application is not guaranteed to be approved. Essex Bank will later contact you to inform you with a decision on your funding request.

• Funds will become available and dispersed to accepted applicants at a future date, which we can not yet predict.

This PPP legislation was designed to speed up approval and funding. Traditional SBA loans can take weeks to months. However, these lowered standards are designed for much faster approval (in as little as a matter of days), but it is impossible to guarantee how fast these loans will be processed and funded due to the unprecedented expected volume of applications.

The COVID-19 Economic Injury Disaster Loan (EIDL) is another small business loan through the U.S. Small Business Administration (SBA). But unlike PPP, it is not processed through Essex Bank. Through this EIDL program, a company can receive a maximum of $2 million in funding, and funds can be used for an expanded range of business purposes. The CARES Act also allows for a $10,000 advance that does not require repayment if used according to the guidelines. You may learn more about EIDL and apply through the SBA website here.