Paycheck Protection Program (PPP)

Last Updated: February 24, 2021

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SPECIAL NOTICE

Under special direction of the President of the United States and the US Small Business Administration (SBA), the SBA will establish a 14-day window, starting Wednesday, Feb. 24, and concluding Tuesday, March 9th, when only businesses with fewer than 20 employees are eligible to apply for Paycheck Protection Program loans. People’s United Bank will continue to accept applications from businesses with 20 or more employees during this time but will be unable to submit them to the SBA for approval. Previously-submitted applications and those with hold or error codes that are in the process of being cleared will continue to move through the process.

To learn more about additional steps the Biden Administration is taking to promote equitable access to SBA relief please visit https://www.SBA.gov/ppp.

The SBA is receiving an extremely high volume of applications for first- and second-draw PPP loans. In some instances you may receive an email from the SBA indicating an error with your application. Please know that the People’s United team is actively researching all instances of errors with individual customer applications and is working to address them as quickly as possible.

Now accepting online applications for PPP Loans

We are now accepting applications for “first draw” (first-time) and “second draw” (second) PPP loans under the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. The SBA has authorized banks like People’s United to accept PPP loan applications through March 31, 2021, unless further modified by Congress.

Our online platform closely follows the SBA’s application and allows you to upload the required documents. It also contains helpful information on completing the application and the supporting materials you will need to provide. Please be sure to review and comply with applicable guidance issued by the SBA.

Before applying, read these important considerations:

Summary of First and Second Draw PPP Loans

Applications for first and second draw PPP loans will follow a multi-step review and approval process involving both People’s United and the SBA. Once your application is submitted, it may take several days for it to be validated and then reviewed by the SBA. The SBA is using a “batch” process to review loans that may result in confirmations taking longer to deliver than was typical last year. We understand the urgency of obtaining PPP funds as quickly as possible, and appreciate your patience in understanding the time it may take to receive confirmation from the SBA that your loan application has been approved.

First-Time (“First Draw”) PPP Loan
Second (“Second Draw”) PPP Loan
Loan Amounts
Up to $10 Million / 2.5x monthly payroll
Up to $2 Million / 2.5 to 3.5x monthly payroll based on industry
Application Dates
Opening of program through March 31, 2021
Terms
5 years / 1.0% Interest Rate / Principal and interest to be paid if the borrower does not submit a loan forgiveness application to their lender within 10 months after the end of the loan forgiveness Covered Period or if the loan is not forgiven
Eligibility
500 employees or less (with exceptions for certain industries)
300 employees or less / Proceeds of first loan fully used /25% reduction in gross receipts for at least one quarter
Forgiveness
Loans forgiven if certain qualifications are met
Covered Period
Borrower can select a period between 8 and 24 weeks from the time funds are disbursed to the borrower
Taxability
Loan forgiveness amount excluded from gross business income; qualified expenses are deductible
Application
Online application
For More Information

Details for Specific Borrower Situations

"First Draw" Loans
For Applicants Seeking their First PPP Loan

In order to apply, you must first have an open People’s United business checking account, into which the PPP loan proceeds will be deposited. If you do not currently have a People’s United business checking account, contact us to establish an account:

You may apply for an amount up to $10 million provided certain eligibility requirements are met, including the business size standards.

Tip: Loan amounts are generally calculated to be 2.5 times the average monthly payroll.

Covered expense types now include non-payroll costs such as certain operations expenditures, property damage costs, supplier costs, and worker protection expenditures. Payroll must still equal at least 60% of the loan forgiveness amount for all borrowers.

Companies are encouraged to consult legal and/or accounting professionals regarding their unique situations and the suitability of PPP loans for their business.


About Applying for a "First Draw" PPP Loan

To begin an application, please contact your Relationship Manager (if assigned), contact your local People’s United Branch or contact our PPP Help Line at (888) 772-1090.

Gather These Documents Before Applying

Depending on your individual situation, other documentation may be required and will be detailed in the application.

  • IRS Form 941 or 940 (quarterly tax returns) for 2019 and/or 2020
  • For sole proprietors or self-employed contractors (where relevant):
    • IRS Form 1099 MISC for 2019 or 2020
    • IRS Form 1040 Schedule C for 2019 or 2020
    • IRS Form 1065 K-1 for 2019 or 2020
    • Profit and Loss statement for 2019 or 2020
    • Payroll provider or other professional employer organization documentation
    • Bank records or account statements if none of the above materials are available

"Second Draw" Loans
For Companies Seeking a Second PPP Loan

If you received your first PPP loan from People’s United Bank you may submit an application with us for a second PPP loan.

If your first PPP loan was not issued through People’s United, we are unable to support a second draw PPP loan application from you at this time. We encourage you to return to the lender that issued your first PPP loan.

If you're seeking a second PPP loan you must have used the full amount of the first PPP loan by the time your second PPP loan funds are disbursed. It is not required to have applied for loan forgiveness on your first PPP loan to apply for a second PPP loan.

Tip: Loan amounts are generally calculated to be 2.5 times the average monthly payroll, or 3.5 times for companies in industries with a NAICS activity code that begins with 72 (Accommodation Industry: Hotel & Restaurants only).

Applicants must demonstrate that gross business receipts in any quarter of 2020 were at least 25% lower than the same quarter of 2019 (unless not in business during the specified quarters). Alternatively, applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019.

Covered expense types now include non-payroll costs such as certain operations expenditures, property damage costs, supplier costs, and worker protection expenditures. Payroll must still equal at least 60% of the loan forgiveness amount for all borrowers.

Companies are encouraged to consult legal and/or accounting professionals regarding their unique situations and the suitability of PPP loans for their business.


About Applying for a "Second Draw" PPP Loan

Important Documentation Requirements

  • In addition to other eligibility criteria, you may qualify for a second draw PPP Loan if you can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 or, if in operation during all quarters of 2019, annually between 2019 and 2020.
  • Second draw loan applicants should familiarize themselves with the SBA’s Frequently Asked Questions related to documenting the revenue loss for second draws loans, the Interim Final Rule, and the IFR for Loan Forgiveness and Loan Reviews and comply with all applicable requirements.
  • Applicants can provide the following primary sets of documents to substantiate their certification of the 25% revenue loss:
    • Quarterly financial statements for the entity. If the statements are not audited, you must sign and date the first page of the statement and initial all other pages, attesting to their accuracy.
    • Quarterly of monthly bank statements for the entity showing deposits for the relevant quarters.
    • Annual IRS income tax filings for the entity (required if using an annual reference period).

Forgiveness
For Companies Seeking Forgiveness for a PPP Loan

If your PPP loan amount is more than $150,000 you may apply for loan forgiveness at any time.

If your application for PPP loan forgiveness has already been submitted to the SBA, we will continue processing it under the current terms.

The newly passed legislation simplifies the forgiveness process for companies with PPP loans of $150,000 or less by providing the option of a simplified and shortened forgiveness application.

If you have an outstanding PPP loan of $150,000 or less, and you have not applied for loan forgiveness, you may want to wait to apply for forgiveness until the simplified application is available from the SBA and available on our online platform. We expect the application to become available in March.

Dual Loan Type Holders
For Companies Holding a PPP Loan and an Economic Injury Disaster Loan (EIDL)

The new legislation eliminates the provision requiring loan forgiveness to be reduced by the amount of an EIDL advance. Any EIDL advances taken by a company will no longer have an impact on the PPP loan forgiveness amount.

This ruling is retroactive for loans that have already been forgiven and for which customers are making repayments.

If your PPP loan has been forgiven and an EIDL advance was deducted from your forgiveness amount, you are expected to continue making your loan payments on remaining PPP loan balances related to EIDL advances. The SBA has advised lenders that the SBA will identify forgiveness payments that were reduced by EIDL advances and it will remit reconciliation payments to PPP Lenders. You will be notified when this payment has been received by the bank and whether as a result your loan has been paid in full or if there remains an outstanding balance.

Disclosure
PUB makes no representation that information contained herein is up to date or complete. Before submitting your PPP loan application, applicants should visit the U.S. Treasury and Small Business Administration for the latest information and guidance related to PPP. SBA and Treasury continue to provide additional guidance concerning PPP and information is subject to change without notice. You may want to consult with independent legal, tax and other professionals for assistance.

We're here to answer your PPP loan questions

Customers holding PPP loans through People's United Bank

Please contact your Relationship Manager or Branch Manager through whom you submitted your application, or call our PPP Help Line.

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