We're Ready to Help Local Businesses
Amboy is here to help you and your business through these uncertain times. You can count on our team to be a resource to help guide you through the programs made available through the CARES Act and other entities.
Take a look at the options:
Paycheck Protection Program
Currently, we are no longer accepting inquiries for the Paycheck Protection Program. Please see additional information and other options noted below.
6/23/20 Update: Interim Final Rules for Forgiveness Released
Officially codified revisions of rules and guidelines concerning fogiveness.
6/17/20 Update: SBA Streamlines PPP Forgiveness Application for Many PPP Borrowers
The Small Business Administration today released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.
Download Form 3508EZ
Download the instructions for Form 3508EZ
Download the revised Form 3508
Download the instructions for Form 3508
6/11/2020 Update: The Payment Protection Program Flexibility Act, which provides greater flexibility for PPP borrowers, has been signed into law.
The Interim Final Rule includes the following:
- Confirms that borrowers that use less than 60% of their PPP loan amount for payroll costs during the forgiveness covered period will still be eligible for partial loan forgiveness.
- Extends the end date of the “covered period” for a PPP loan from June 30, 2020 to Dec. 31, 2020.
- Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years at the mutual agreement of the borrower and lender.
- Extends the loan forgiveness period from eight weeks to 24 weeks. (For loans made prior to June 5, 2020, borrowers may opt to keep the forgiveness period at eight weeks.)
- Clarifies that if a borrower submits its forgiveness application within 10 months of the end of the loan forgiveness period, the borrower will not have to make any payments on the loan before the date SBA remits the forgiven amount to the lender.
- Reiterates that the last day a lender can obtain an SBA loan number for a PPP loan is June 30, 2020.
In general, these changes will allow for more flexibility around term of use, forgiveness use, qualifying time period, and how to mitigate forgiveness discounts. We recommend you consider how these changes impact your use of the loan and how it can best be forgiven, paid, or used long-term. If you have a PPP loan through Amboy, soon, we will provide what additional information is available and guidance on next steps.
5/18/2020 Update: For those we were able to help with a Paycheck Protection Program (PPP) loan, please read the below for information on Loan Forgiveness. For more information on PPP, visit here.
We hope the funds you obtained with the Paycheck Protection Program have helped your business keep employees on payroll, despite the economic hardships related to COVID-19. We will get through this together.
The Small Business Administration and Treasury Department recently released an application that borrowers must complete in order to have their Paycheck Protection Program loan forgiven. The form includes detailed information about the costs that are eligible for forgiveness and instructions for calculating those costs. The form can be found here.
The SBA also announced several measures intended to reduce compliance burden and simplify the forgiveness process for borrowers, including a safe harbor from loan forgiveness reduction for borrowers that were able to rehire employees who had previously been let go or laid off by June 30, 2020. It also included an exemption from forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.
Finally, the SBA provided an option for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with their regular payroll cycles, and flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan. For more information, visit the SBA website.
Business is changing, and we have the tools to reflect the new way you are operating. Payroll management, remote capture, night drop, digital banking and merchant services are just some of the ways we can help your business acclimate to the changing environment. Please contact your branch manager for more information on these and other services.
5/5/2020 Update: Here are some answers to some frequently asked questions, courtesy of the Treasury Department. The list is updated regularly.
4/17/2020 Update: Be aware of scams involving this program. Applications will only be taken by SBA-affiliated lenders. More info is here.
SBA Economic Injury Disaster Assistance Loans
SBA is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus. LEARN MORE or APPLY NOW
Employee Retention Credit
If you've not taken advantage of the Paycheck Protection Program, you may be eligible for the Employee Retention Credit program.
The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees. This Employee Retention Credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021. The maximum amount of qualified wages taken into account with respect to each employee for all calendar quarters is $10,000, so that the maximum credit for an Eligible Employer for qualified wages paid to any employee is $5,000.
Eligible Employers for the purposes of the Employee Retention Credit are those that carry on a trade or business during calendar year 2020, including a tax-exempt organization, that either:
- Fully or partially suspends operation during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or
- Experiences a significant decline in gross receipts during the calendar quarter.
Note: Governmental employers are not Eligible Employers for the Employee Retention Credit. Also, Self-employed individuals are not eligible for this credit for their self-employment services or earnings. For details on this program go to the full IRS FAQ.
The New Jersey Economic Development Authority (NJEDA) may have grants and loans available to help buinesses in New Jersey. LEARN MORE
We will update our website as details emerge. If you have any questions or concerns in the meantime, feel free to contact one of our Business Lenders at (877) 222-6269. If you are looking for more information about how Amboy has prepared for this pandemic, please go here