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SBA Paycheck Protection Program

Broadway Bank is proud to serve small businesses, especially during difficult times. Our top priority remains to support you and the success of your business, and we thank you for trusting Broadway Bank.

In response to COVID-19, the Small Business Administration (SBA) set aside funds to implement its Paycheck Protection Program as part of the CARES Act through low-rate loans. These can be utilized for normal operating expenses or working capital for existing businesses. This program was instituted by the SBA on the evening of Friday, April 3, and was immediately put into action by local community banks like Broadway Bank. An additional stimulus package in the Paycheck Protection Program passed legislation on Thursday, April 23, to make more funding available for small businesses.

A program of this scale doesn't come without challenges— new direction and guidance are being released daily by the SBA. We recommend visiting the websites below to understand the guidelines and responsibilities associated with this program.

U.S Department of Treasury

U.S. Small Business Department Paycheck Protection Program

We know you are eager to get funded and we want to get you there. Again, we ask you to stay strong—we’re in this together.

Loan Forgiveness

As you prepare for possible loan forgiveness, the SBA will require specific information regarding how funds were utilized in order to forgive eligible expenses. Such expenses include certain payroll costs, rent, mortgage interest and utilities. The following information is the most current guidance available.

  • Calculated based on payroll costs, mortgage interest, rent, utilities for the 8-week period paid after loan origination.
  • Payroll costs over $100,000 per employee will not be considered in the forgiveness application.
  • Amount will be reduced if the number of employees used to determine loan amount is decreased or salary expense is reduced.

We encourage you to visit either the U.S Department of Treasury or U.S. Small Business Department websites regularly in order to stay up-to-date on changes or additions to the program’s guidelines for loan forgiveness.

Key Details

Eligibility

  • The applicant was in operation and a business customer of Broadway Bank
  • Small businesses, sole proprietorships, independent contractors and eligible self-employed individuals
  • 501(c) (3) Nonprofit organizations
  • 501(c)(19) Veteran organizations
  • Tribal business concerns
  • Business is considered a small business under SBA guidelines

For detailed eligibility information, visit U.S. Department of Treasury

Documentation Required

  • Complete SBA Application form 2483
  • Choose one or more of the following to document Wages/Benefits paid to Employees
    • 2019 Federal Tax Return if filed
    • 2019 Employers Quarterly Federal Tax Return 940/941’
    • If Independent Contractor – 2019 1099-MISC
  • Entity Documentation

Loan Amount

Will be determined on 2.5x the average monthly payroll cost incurred and paid over the year prior. Plus the outstanding amount of an SBA disaster loan made between 1/31/2020 and ending on the date on which covered loans are available to be refinanced under this program.

For detailed loan amount information visit, U.S. Department of Treasury

Payroll costs include salary, wages, and payment of cash tips, employee group health care benefits, including insurance premiums; retirement contributions; and covered leave. Salaries/Wages over $100,000 per employee will not be included.

Loan Forgiveness

As you prepare for possible loan forgiveness, the SBA will require specific information regarding how funds were utilized in order to forgive eligible expenses. Such expenses include certain payroll costs, rent, mortgage interest and utilities. The following information is the most current guidance available.

  • Calculated based on payroll costs, mortgage interest, rent, utilities for the 8-week period paid after loan origination.
  • Payroll costs over $100,000 per employee will not be considered in the forgiveness application.
  • Amount will be reduced if the number of employees used to determine loan amount is decreased or salary expense is reduced.

We encourage you to visit either the US Treasury Department or U.S. Small Business Department websites regularly in order to stay up-to-date on changes or additions to the program’s guidelines for loan forgiveness.

How to Apply for the Paycheck Protection Program.

Current Broadway Bank business customers can apply for the SBA Paycheck Protection Program by logging into Online and Mobile Banking, iBIZ® Small Business, or iBIZ® Commercial.

If you do not have online access to your account, you will need to register for access to our Online and Mobile Banking platform. To register for access, click here. It’s simple and easy to follow.

Once logged in, follow these steps to apply:

  • Locate the SBA banner ad at the top of your screen located above your account information.
  • Click on “Apply Now.” The link will redirect to a new screen to setup an account for the digital application.
  • At the digital application screen, you will need to enter in an email address and a password to create a separate account. Your Online and Mobile Banking credentials (username and password) will not allow you access to the digital application.
  • Once you create your account, you can begin completing the SBA Paycheck Protection Program application.

All credit decisions are subject to approval. For SBA loan products, SBA eligibility is also required.

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