US Small Business Administration

Paycheck Protection Program (PPP)

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was recently passed to provide emergency relief for small to medium-sized businesses disrupted by COVID-19. As a trusted community bank and SBA Preferred Lender, Cross River is facilitating this relief and accepting applications to the program.

Additional information about the CARES Act and Paycheck Protection Program is available from the US Department of the Treasury and US Small Business Administration (SBA).

You can also read the FAQ below.

Program Highlights

Amount

Up to $10 million for payroll, rent, mortgage interest, or utilities.

Terms

1% annual percentage rate with maturity of 2 years and first payment deferred for 6 months. No fees.

Availability

Retroactive from February 15, 2020 through June 30, 2020.

Forgiveness

Up to 100% if proceeds used for designated expenses while maintaining salaries and headcount for 8 weeks.

Collateral

No collateral or personal guarantees are required.

Eligibility

Most businesses and nonprofits with 500 or fewer employees as prescribed by the SBA (employee count exceptions may apply).

Accepting applications starting April 3, 2020. All terms subject to change based on latest updates from the US Small Business Administration.

FAQ

Terms and conditions in these FAQs are subject to change based on updates from the US Small Business Administration.

The Paycheck Protection Program (PPP) is a US Small Business Administration (SBA) loan designed to help businesses maintain their workforce during the Coronavirus (COVID-19) crisis. PPP was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. PPP loans will be fully forgiven if certain conditions are met.

The PPP is available retroactive from February 15, 2020 (so employers can rehire their recently laid-off employees) through June 30, 2020, or until the funds made available for the Program are exhausted. Applications from small businesses and sole proprietorships will begin processing on April 3, 2020, while applications from independent contractors and self-employed individuals will begin processing on April 10, 2020.

PPP loans are generally available to all businesses and nonprofits with fewer than 500 employees. The SBA’s size standards allow for businesses in certain industries to be eligible while employing more than 500 employees. Businesses in the hospitality and food industries may be eligible at the store level. Please speak with a Cross River Bank representative to determine your eligibility.

PPP loans are unsecured. No collateral or personal guarantees are required.

PPP loans may be fully forgiven if at least 75% of funds are used for payroll costs and the remaining funds are used for designated business operating expenses, including interest on mortgages, rent, and utilities, within eight weeks following the date of loan origination. The level of forgiveness will be reduced if full-time headcount or salaries and wages decrease. Please speak with a Cross River Bank representative to determine what your organization can categorize as payroll costs as defined under the PPP.

Eligible organizations may qualify for a loan amount equivalent to eight weeks of prior average payroll plus an additional 25%, up to a maximum of $10 million. Payroll costs will be capped at $100,000 annualized for each employee. Please speak with a Cross River Bank representative to calculate your average payroll as defined under the PPP.

PPP loans have a 1.0% annual percentage rate and maturity of two years. There are no fees associated with PPP. The first payment is deferred for six months.

Yes. If you received an EIDL from January 31, 2020 through April 3, 2020 not used for payroll costs, the EIDL does not affect your PPP eligibility. If you received an EIDL from January 31, 2020 through April 3, 2020 used for payroll costs, the PPP loan will be used to refinance the EIDL. If you took an advance up to $10,000 on the EIDL, that amount will be deducted from the forgiveness amount of the PPP loan. While EIDL is only available directly through the SBA, a Cross River Bank representative can help you determine which resources are available to meet your needs.

You can complete your application at www.crossriver.com/PPP. Cross River Bank representatives are ready to walk you through the process.

Applications for the Paycheck Protection Program must be submitted through a qualified, participating financial institution. As an SBA Preferred Lender, Cross River is well equipped to provide expert guidance and walk you through the process. Cross River was established in 2008 in the aftermath of the financial crisis with the goal of providing financial resources to businesses and consumers in need. Cross River combines the trust and reliability of a community bank with the cutting edge innovation of a technology company to offer small businesses the banking and technology services they need in the timely fashion they need it.

Cross River Bank assists businesses across the United States.

Please visit the PPP Contact Page for information on how to get in touch.

Cross River continues to provide responsible access to credit for businesses in need.

Born in the aftermath of the 2008 financial crisis, Cross River was established with the goal of providing financial resources to businesses and consumers in need.

Cross River combines the trust and reliability of a community bank with the cutting edge innovation of a technology company to offer small businesses the banking and technology services they need in the timely fashion they need it.

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