The Paycheck Protection Program (PPP) Extension Act was signed into law on March 30, 2021. Cape Cod 5 is accepting PPP applications from all eligible businesses and individuals through May 24, 2021, subject to program funding availability. Eligible applicants are encouraged to apply immediately, as the SBA has stated that funding may be exhausted as early as mid-April 2021.


The PPP is a federal relief program created to assist small and medium-sized businesses affected by the Covid-19 pandemic, and all participating lenders, including Cape Cod 5, must follow program regulations as set by the SBA and U.S. Treasury. The information on this page is provided for your convenience, and all borrowers are responsible for understanding and complying with guidance issued by the SBA. The SBA has noted that the last day to apply for a PPP loan is May 31, 2021, though funding may be exhausted prior to that deadline (Cape Cod 5’s deadline is May 24, 2021 to allow for processing) and approval depends on availability of funding. Full program rules can be viewed at www.sba.gov/ppp.  
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Sole proprietors, independent contractors and self-employed individuals: The SBA has issued new guidelines for loan calculation for IRS Form 1040, Schedule C filers with loans approved after March 3, 2021. Cape Cod 5 began accepting applications using the new calculations on March 11, 2021.
 

Click here to view updated information for sole proprietors, independent contractors & self-employed individuals

Additional Information 

The information on this page regarding PPP regulations and requirements is provided for your convenience, and all borrowers are responsible for understanding and compliance with guidance issued by the SBA. 

 

For additional information and full program regulations and requirements, please visit:


Loan Forgiveness

Who is eligible for loan forgiveness: PPP Borrowers may be eligible for loan forgiveness if:
  • Employee and compensation levels are maintained as outlined in program rules.
  • Loan proceeds are spent on payroll and eligible expenses.
  • At least 60% of the proceeds are spent on payroll costs.
When to apply for loan forgiveness: A borrower can apply for forgiveness at any time during the term of the loan. Loan payments will be deferred for the first 10 months after the last day of the 24-week covered period.  

For more information, please visit our Loan Forgiveness Page 

Loan Forgiveness



Here are answers to some frequently asked questions about the Paycheck Protection Program:

If I didn’t receive a PPP loan in 2020, can I still apply?
Yes, you may apply for a First Draw PPP Loan under the Covid-19 Relief Act. In general, to be eligible for a First Draw PPP Loan you must be a qualified business or non-profit type in operation on February 15, 2020. Seasonal businesses will be considered if the business was in operation for any 12-week period between February 15, 2019 and February 15, 2020. First Draw PPP Loans do not have the revenue reduction requirement.   
Additional business types now permitted to apply for PPP loans including non-profit and tax-exempt news organizations, housing cooperatives, destination marketing organizations and certain 501(c)(6) organizations. Additionally, borrowers who applied in 2020 and returned funds, may reapply to the program.
Source: SBA Interim Final Rule: Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act, January 6, 2021. 
For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES   
What loan amount am I eligible for?
In general, borrowers will be able to borrow up to 2.5 times their average monthly payroll costs.
Businesses in the accommodations and food service sector (NAICS costs beginning with 72) are eligible to borrow up to 3.5 times their average monthly payroll costs. Eligible employee compensation may not exceed an annual salary of $100,000.   
The maximum loan amount for a First Draw PPP Loan is $10 million. The maximum loan amount for a Second Draw PPP Loan is $2 million.   
Source: SBA Interim Final Rule: Business Loan Program Temporary Changes; Paycheck Protection Second Draw Loans and Paycheck Protection program as Amended by Economic Aid Act, January 6, 2021. 
Will Second Draw PPP Loans be eligible for Forgiveness?
Second Draw PPP Loans are eligible for loan forgiveness under the same terms and conditions as First Draw PPP Loans (borrowers of loans of $150,000 or less are required to provide documentation of revenue reduction if such documentation was not provided at the time of loan application)   
Source: SBA Interim Final Rule: Business Loan Program Temporary Changes; Paycheck Protection Second Draw Loans and Paycheck Protection program as Amended by Economic Aid Act, January 6, 2021. 
When can I apply for a First or Second Draw PPP Loan?
Cape Cod 5 is now accepting applications from all eligible businesses and individuals through May 24, 2021. The SBA has stated that May 31, 2021 will be the last day loan applications will be accepted and  June 30, 2021 will be the last day the SBA will approve loan applications. 
What expenses can a PPP loan be used for?
Eligible expenses include:  
Payroll costs: Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation. Include only payroll costs for employees whose principal place of residence is in the United States and for each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000. 
Non-payroll costs (may total up to 40% of the loan amount): These include (a) covered mortgage obligations: payments of mortgage interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020; (b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 and (c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020. Recent changes to the PPP program include expenses related to software to support operations and personal protective equipment for employees.   
Are Economic Injury Disaster Loan (EIDL) advances/grants still being deducted from forgiveness amounts?
No, Economic Injury Disaster Loan (EIDL) advances/grants are no longer deducted from forgiveness amounts.  
For more information on Economic Injury Disaster Loans (EIDL) offered by the SBA, please visit the SBA’s website by clicking here
I’m a sole proprietor, independent contractor or self-employed individual applying for a PPP loan after March 11, 2021, are there changes to how I can calculate my loan amount?
Yes, the White House made changes to how loans are calculated to potentially allow applicants who report income on IRS Form 1040 to receive more financial support.  Please click here to learn more. 
If I received my first PPP (First Draw) loan in 2021, can I apply for a second PPP (Second Draw) loan in 2021?
Yes.  To apply for a second PPP (Second Draw) PPP loan, you must: 
  • 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. 
To comply with PPP regulations, the disbursement of Second Draw loan funds must be no early than 8 weeks after the disbursement of First Draw loan funds and the covered periods of the loans (the period where the funds are spent on expenses eligible for forgiveness) cannot overlap.   
You do not have to apply for forgiveness on your First Draw PPP loan to apply for a Second Draw Loan. 
For more information, please visit our Second Draw Application Guide.
Is my entity eligible for both a PPP loan and a Shuttered Venue Operators Grant (SVOG)?
If your entity applied and was approved for a PPP loan prior to December 27, 2020, the entity is eligible to apply for a SVOG. 
For entities applying for a PPP loan after December 27, 2020, while entities originally were prohibited from receiving both forms of SBA assistance, the American Rescue Plan Act, which became law on March 11, 2021, removed this restriction. However, under the law, entities will be ineligible for a PPP loan AFTER they receive an SVOG. 
For more information on the SBA’s SVOG program, please click here
As of December 27, 2020, is an employer that receives a First Draw PPP Loan or Second Draw PPP Loan also eligible for the Employee Retention Credit?
Answer: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, which was enacted as Division EE of the Consolidated Appropriations Act, 2021, Pub. L. No. 116- 260, 134 Stat. 1182, on December 27, 2020, permits an employer that received a First Draw PPP Loan or Second Draw PPP Loan to claim the Employee Retention Credit if the employer is otherwise an eligible employer satisfying the requirements for the credit. However, payroll costs that are qualified wages for the Employee Retention Credit are not eligible for loan forgiveness if the employer elects to claim the credit for those amounts. (Additional guidance from the IRS is available at https://www.irs.gov/pub/irs-drop/n-21-20.pdf.) 
Source: SBA PPP FAQ’s  
Where can I find additional information?
Please visit sba.gov and treasury.gov for more information on the program.  
At this time, our Banking Centers and Customer Service Center will have no additional information on the new PPP legislation as we wait for guidance from the SBA.  

 

Protect your business

Please be aware that fraudsters have been targeting businesses, claiming to be offering SBA and PPP grants and loans. Requirements of payments upfront for assistance in applying or getting approval for a PPP loan should be considered fraudulent. Cape Cod 5 does not charge the borrower a fee for applying for a PPP loan or applying for forgiveness. We encourage you to use extreme caution when sharing information and clicking on links or attachments in emails – especially if you do not recognize the sender. Please visit the Cape Cod 5 Security Center for additional tools and tips to protect yourself and your business.

Cape Cod 5 Security Center

 

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