For more than 120 years, Mascoma Bank has helped our customers and our communities through good times and challenges of all sorts. Today is no different, and we stand ready to help you and your business or nonprofit. With the new federal pandemic relief package signed into law, we are assisting many of our business and nonprofit customers with the second round of the Paycheck Protection Program (PPP).
Due to expected high volume Mascoma Bank is prioritizing the processing of PPP Loans to existing Business Customers as of 12/31/20. If you are not currently a Mascoma Bank business customer, we recommend you work with your existing bank. You may also watch our website for the possibility of our opening up the application process to others in the future.
If you are a business that has not yet participated in the Paycheck Protection Program and would like to apply for your first PPP loan, this guidance from the SBA can help you prepare. Please note that starting on page 31 of the rule it highlights how to calculate the eligible maximum loan amount.
If you are a business that received an original PPP loan and would like to apply for a second draw PPP loan, this guidance from the SBA can help prepare. Please note that starting on page 20 of the rule shows information on who is eligible for a second draw PPP loan. Starting on page 27 highlights how to calculate the eligible maximum loan amount.
Some Key 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 eligible to apply for a Second Draw PPP Loan. 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% reduction in gross receipts between comparable quarters in 2019 and 2020.