What is the Paycheck Protection Program (PPP)?
The Paycheck Protection Program (PPP) is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA). Loans are designed to provide a direct incentive for small businesses to keep their workers on payroll.
Forgiveness of the loans is provided if all employee retention criteria are met and the funds are used for eligible expenses.
Ambler Savings Bank is here to help local businesses, both customers and non-customers, apply for PPP loans to help keep their business in operation during the pandemic. We are open for in-person appointments. Contact us today!
- Businesses that have not received 2020 PPP loans may be eligible for a 2021 first draw PPP loan.
- Businesses that received 2020 PPP loans may be eligible for a 2021 second draw PPP loan.
- To be eligible for a 2021 second draw PPP loan, businesses must employ no more than 300 employees and demonstrate a 25% or more reduction in revenue in any 2020 quarter compared to a similar period in 2019.
- Eligible businesses can borrower 2.5 times (certain businesses 3.5 times for their 2021 second draw PPP loan) their average monthly payroll cost.
- You must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness
- You can use up to 40% of funds for eligible non-payroll costs
- PPP loans have an interest rate of 1%.
- No collateral or personal guarantees are required.
- Neither the government nor Ambler Savings Bank will charge small businesses any fees.
- Other criteria determined by the SBA may apply.
For the latest information from the SBA, visit their website here.