Salem Five has begun accepting applications for the Paycheck Protection Program in support of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Administered by U.S. Small Business Administration (SBA), business customers who have an existing deposit or loan relationship with Salem Five can reach out to their loan officer or branch to begin the application process.
The CARES Act provides $350 million in loans to businesses with 500 or fewer employees. Loans through the Paycheck Protection Program can be partially forgiven if businesses meet certain requirements. A business or a not-for-profit organization that needs assistance due to the impact of the Coronavirus can apply under this program. Loans for the lesser of up to 2.5X the average monthly payroll costs (during the one-year period before the date on which the loan is originated) or $10 million are possible, if approved under the PPP loan program.
The following is an overview of the program:
- Friday, April 3: Small businesses and sole proprietorships with 500 or fewer employees can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Friday, April 10: Independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Additional information can be found here on the SBA’s website.
What businesses need to do:
- Fill out the application on the SBA’s website, which can be found here
- Provide the completed loan application and documentation to support the payroll calculation to your contact at Salem Five. If you do not have the person’s contact information, you can reach out to our Contact Center at (800) 850-5000.
Salem Five will process and fund these loans as quickly as possible. However, due to the fact that this is a new program and demand is expected to be extremely high, it may take several days to fund these loans, but rest assured we will do our best to accommodate your credit needs.
Salem Five has made the decision to accept applications from businesses that currently have a deposit or lending relationship with the bank. Given the expected influx of applications, we want to prioritize those who have a relationship with our bank. If we decide to accept applications from non-customers, we will update our process and indicate this change on our website.
For information about other SBA programs, click here