Affinity's Current Status on SBA Paycheck Protection Program (PPP) Loans

PPP 2021

Important Update: The Biden/Harris administration has announced the below changes to the SBA Paycheck Protection Program effective March 3.

  • Exclusions for applicants with delinquent student loan debt and prior non-fraudulent felony convictions will be lifted.
  • The loan amount calculation for sole proprietorships, independent contractors, and self-employed individuals who file a schedule C tax return is being adjusted. Please make note of the section on Safe Harbor for applicants with more than $150,000 in gross income.
    • The SBA has communicated to lenders that the new calculation will only be available for loans approved after the effective date of the new rules, March 3, and there will be no increases for loans approved, funded, and reported to the SBA. Two new applications have been developed by the SBA which must be used for the new calculation. If your PPP loan funded on or prior to March 31st, it is not eligible for any potential increase from the new calculation.

    How to Apply for a First or Second Draw PPP Loan with Affinity

    The PPP loan program was officially extended to May 31st with President Biden's signature on March 30th at 2pm. Affinity is now accepting applications again. To apply, please click here.
    Members who have received this portal for forgiveness will use the same username and password to login.

    Complete applications will be processed in the order received. Receipt of PPP funds is subject to approval by both Affinity and the SBA per program guidance outlined by the SBA and availability of funds in the program.

    Instructions to help guide you through the process can be found within the portal and here.

    As a general overview, the following is a list of the minimum information needed with your application. Affinity staff need to verify the figures on your application with the documentation provided. Additional information may be required:

    • Sole Proprietor (no employees): Schedule C
    • Sole Proprietor (with employees): Schedule C and corresponding 941's
    • Partnership (no employees): K-1's of all partners
    • Partnership (with employees): Tax Returns with all K-1's and corresponding 941's
    • Corporation (S or C): Tax Return and corresponding 941's
    • Any entity looking to include health benefits, retirement, etc. must provide evidence of payment of such (Checks/Invoices)
    • All second draw loans should provide signed financial statements evidencing 25% revenue reduction.

    The following links can assist you in researching what you will need to apply for this round of PPP loans and allow you to begin gathering your required documentation.

    Note: If you are not an existing Affinity member your membership will need to be established prior to your application being processed. An Affinity representative will reach out to you to begin that process.

There are significant differences from the first round of PPP loans to the Second Draw.

A summary of some of the differences is listed below. Specific guidance can be found in the links referenced above.

Yes, to be eligible for a Second Draw PPP Loan, a business must have:

  • Less than 300 employees
  • Experienced a revenue reduction of 25% or more in 2020 relative to 2019
  • Used all of the First Draw PPP loan funds prior to receiving a Second Draw
  • Met all SBA size and industry eligibility guidelines
  • Been active as of 2/15/20 and currently open or only temporarily closed

In general, the maximum loan amount is the lesser of 2 ½ months average monthly payroll or $2 million.

Businesses with an NAICS code beginning with 72 are eligible to receive the lesser of 3 ½ months average payroll or $2 million.

Documentation will vary slightly based upon the loan amount and type of business but in general:

  • Completed Application Form 2483-SD and certifications
  • Backup of information used to calculate payroll
  • Evidence of 25% reduction in revenue from 2019 to 2020

Second Draw proceeds may be used to pay for the following expenses during the Covered Period:

  • Payroll (must be a minimum of 60% of funds)
  • Costs for healthcare, life, disability or other benefits
  • Mortgage interest
  • Rent
  • Utilities
  • Interest payments on debt incurred before 2/15/20
  • Refinancing EIDL loans made between 1/31/20 and 4/3/20
  • Operational expenditures such as tracking of inventory or payroll, business software, etc.)
  • Property damage costs
  • Supplier costs
  • PPE costs

Please check all guides and FAQs issued by the Treasury and SBA for details to ensure proceeds are used correctly for forgiveness.

The Second Draw PPP loan has an interest rate of 1.00% and a term of 5 years. There are no collateral requirements. Interest and principal payments are deferred until either forgiveness is finalized or ten months from the end of the covered period which can be from 8 weeks to 24 weeks at member's selection. If proceeds are used per terms permitted, the loan may be fully forgiven by the SBA.

A Business Banker will reach out to you to assist with the process. Questions may be sent to 908.860.7370. Please leave a message with your business name, your name and contact information. A Business Banker will return your call within two business days to assist you with the process.

Affinity will update this webpage as more information becomes available.

Forgiveness of First Round PPP Loans

We are now working diligently to guide our loan recipients through the forgiveness phase of the PPP program. If your loan has already been forgiven and was reduced due to prior EIDL advances, you may be contacted to adjust the forgiveness amount.

At this time, Affinity is not accepting forgiveness applications for loans made under the Economic Aid Act, this would include any PPP loans made in 2021. We are still awaiting final guidance from the SBA and will need to update our system. Please continue to check this page for further updates.

At present:

PPP Loans $150,000 or More

Members with PPP loans equaling $150,000 or more should have received an email with a link to an online portal to complete the forgiveness application specific to these loans and upload all supporting documentation. Once the covered period of your PPP loan has ended (either 8 or 24 weeks from the date the loan was loan funded), you may begin the forgiveness application process.

If you did not receive an email from Affinity inviting you to use our online PPP loan forgiveness application, please contact us at 908.860.7370 and leave a message including your name, the business entity name, email and phone number. A representative will respond to you within two business days.

PPP Loans Less than $150,000

The Economic Aid Act provided for a shorter form forgiveness application for PPP loans less than $150,000. This form has now been activated in Affinity's secure portal. Access the portal and begin your forgiveness application.

If you have questions regarding your forgiveness application please contact us at 908.860.7370 and leave a message with your name, business entity name, email and phone number. A representative will respond to you within two business days.

Guide to Affinity's Online Loan Forgiveness Application

A guide to help you navigate our online portal can be found here. Information on how to complete the forgiveness application can be found on the portal. We also encourage you to refer to the SBA's Frequently Asked Questions here to ensure adherence to the program's forgiveness eligibility requirements.

IMPORTANT: Be Aware of Fraudulent emails Impersonating the SBA and Office of Disaster Assistance

The U.S. Small Business Administration is sending a cyber warning alert to loan applicants seeking federal aid in response to the Coronavirus (COVID-19) pandemic. Email phishing campaigns where malicious actors are impersonating the SBA and its Office of Disaster Assistance to collect personally identifiable information (PII) for fraudulent purposes have surfaced. For more information on how to recognize fraudulent emails from the SBA and how to report them visit, https://www.sba.gov/document/report-sba-programs-scams-fraud-alerts

 

Thank you for your continued patience and understanding as, together, we navigate the SBA PPP loan product requirements.