Paycheck Protection Program (PPP)

Notice: The Bank of Princeton will be open for FIRST DRAW and SECOND DRAW applications on January 18, 2021 at 9:00am EST

The Small Business Administration (SBA) will start accepting applications from PPP-eligible lenders with $1 billion+ in assets on Tuesday, January 19. The portal will accept applications for eligible FIRST DRAW and SECOND DRAW applicants.


This current round of PPP funding extends through March 31, 2021, or until the funding is exhausted. Funds are Limited.

SBA Resources & Information on PPP Loans


The Bank of Princeton is proud to have supported countless local businesses via the Small Business Administration’s Paycheck Protection Program in the year 2020. The Bank will once again participate in the next round of the program to ensure continued support of our local businesses.


How to Apply:

You will need to complete the Paycheck Protection Program online loan application and submit the application with the required documentation to an approved lender that is available to process your application until the funding in this program is depleted or by March 31, 2021, whichever is earlier. 


If you have already applied for a PPP Loan through another financial institution, for this phase of the PPP Loans, that application must first be withdrawn before The Bank of Princeton can process your new application in accordance with SBA Guidelines.


Please fill out the Online Application and a Loan Representative will reach out shortly for additional documentation.

Apply Now

You may apply for a Paycheck Protection Program (PPP) loan as a New Customer of The Bank of Princeton.

If approved for the loan, you will need to open a Business Account at The Bank of Princeton before your loan will be funded.  A Customer Service Representative from The Bank of Princeton will contact you to open the Business Account once you return the fully executed loan documents to the Bank and are approved by the SBA.

Click Here to Apply

For a complete list of branch locations and contact information, click here:    Hours & Locations




Returning PPP Borrows:

Applying for the Second Draw under the Paycheck Protection Program

Borrowers interested in applying for Second Draw funding under the amended PPP are not required to submit additional documentation to substantiate payroll costs if the borrower, (i) used 2019 payroll figures to determine their First Draw PPP loan amount, (ii) plans to once again use 2019 payroll figures to determine their Second Draw PPP loan amount, and (iii) the applicant uses the same lending institution to apply for their Second Draw PPP loan as used to apply for the borrower’s First Draw PPP loan.

PPP Second Drawn funding: Most borrowers can apply to receive 2.5x their average monthly payroll costs, based on 2019 or 2020 payroll costs.  Those businesses in the restaurant and hospitality industry, with an NAICS code beginning with 72, can receive up to 3.5x their average monthly payroll costs.

To qualify for Second Draw PPP loans: Borrowers must have received a First Draw PPP loan, must have used, or will use the full amount of such First Draw PPP loan on or before the expected date the Second Draw PPP loan will be disbursed to the borrower, and must employ 300 employees or less. 

To be eligible for a Second Draw PPP Loan:  The borrower must have experienced a revenue reduction of 25% or greater in 2020 relative to 2019. A borrower must calculate this revenue reduction by either (i) comparing the borrower’s quarterly gross receipts for one quarter in 2020 with the borrower’s gross receipts for the corresponding quarter of 2019 or, for Borrowers who were in operation in all four quarters of 2019, (ii) if they experienced a reduction in annual receipts of 25% or greater in 2020 compared to 2019 and the borrower submits copies of its annual tax forms substantiating the revenue decline.

Borrowers must be prepared to upload documents evidencing their revenue reduction information during our online application process.  Examples of such documentations are as follows:

  • Bank statements
  • Tax forms
  • Quarterly financial statements



Loan Forgiveness:

How much of my loan will be forgiven? You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 24 weeks after getting the loan. Not more than 40% of the forgiven amount may be for non-payroll costs. 
  
How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days of a completed application for forgiveness. The SBA then has 90 days to review the application and remit the appropriate forgiveness amount to the lender. The lender will then notify the borrower of the final forgiveness amount of the loan. If only a portion of the loan is forgiven, or if the forgiveness request is denied, any remaining amount due on the loan must be repaid by the borrower on or before the two-year or five-year maturity of the loan, whichever is applicable.


  

Additional Information for Borrowers:

What other documents will I need to include in my application? You will need to provide your lender with payroll documentation and, if seeking forgiveness for expenses such as rent, mortgage interest or utilities, the borrower must submit evidence of those payments.

When do I need to start paying interest on my loan? All payments may be deferred up to 10 months after the covered period (24 weeks) as outlined in the SBA Guidelines; however, interest will continue to accrue over this period.

When is my loan due? Loans issued prior to June 5, 2020, have a maturity of 2 years unless the borrower and lender mutually agreed to extend the term of the loan to 5 years. Loans issued after June 5, 2020, have a maturity of 5 years.

Can I pay my loan earlier than the maturity date? Yes. There are no prepayment penalties or fees.

The SBA’s Frequently Asked Questions document can be accessed at the following website: https://www.sba.gov/document/support-frequently-asked-questions-ppp-loan-forgiveness


Applying for PPP Loan Forgiveness with The Bank of Princeton:

In order to apply for forgiveness of your PPP loan, please send an email request to PPPForgiveness@thebankofprinceton.com and include the information requested below. Once the information is received, a bank representative will email you with the forgiveness link specific to your previously approved PPP loan.

  • PPP Applicant (Borrower) Name:
  • PPP Loan Number (Starts with 31…):
  • PPP Applicant Email Address:
  • PPP Applicant Contact Name:
  • PPP Contact Telephone Number:

Important update 

On October 8th, the SBA announced changes to the Paycheck Protection Program (PPP) loan forgiveness process. These changes include a simplified loan forgiveness application 3508S for certain borrowers with PPP loans of $50,000 or less. We are taking the steps necessary to make this new PPP loan forgiveness application available to our clients via The Bank of Princeton forgiveness portal. We expect the newer application to be available on the portal by mid-November. In the meantime:

  • For clients who have already submitted a loan forgiveness application, we will continue to process your application unless you inform us that you would like to withdraw your application and reapply using the new application when it becomes available to you. Please note that applications which had already been submitted by the bank to the SBA cannot be withdrawn.
  • For clients who have started, but not yet submitted their PPP loan forgiveness application, you are welcome to continue with your application or wait for the new application when it becomes available on our forgiveness portal.
  • For clients who have not yet submitted a loan forgiveness application and wish to apply using the new form 3508S, please provide the information requested in the section above and send an email to PPPForgiveness@thebankofprinceton.com. Upon receipt of your email, a bank representative will email you a personalized link to your PPP loan forgiveness application accessible via our portal.

For up-to-date rules for the SBA’s PPP loan forgiveness process, including your Covered Period, the type of costs that are eligible for forgiveness and what documentation you will need to submit as part of your application, please visit the SBA website.