Paycheck Protection Program FAQ
At Boston Private we are committed to supporting our small business clients and the communities in which we operate during this unprecedented time. We sincerely appreciate your patience as we work with the SBA to process all loans that were in process on or before 11:59pm ET April 9th 2020.
To date, Boston Private has secured SBA authorizations for approximately 1,000 organizations. 64% of those loans are for $250,000 or less including loans to hundreds of non-profit organizations, a group that Boston Private has long been highly committed to serving.
We hope these Frequently Asked Questions will help you work with us as we process your loan. For additional resources, we encourage you to visit the following resources for up-to-date information on the Paycheck Protection Program.
I am locked out of my account, how do I re-set my password?
Please use the reset password link on the login page. If you continue to have trouble, please email [email protected]
The link to the SBA FAQs can be found HERE
Program and Qualification Questions
Where can I find details about the program and answers to whether I qualify?
Boston Private does not have any details beyond what the SBA has published. The published SBA information will provide the most accurate answers to your questions. Examples include:
- Whom can I contact if I have questions about the program (e.g. payroll calculations, loan details required documents, loan forgiveness, interest rate, loan term, etc.)?
- My loan amount is greater than my total payroll, rent and utility expenses; is the excess amount forgivable? If not, will I be charged interest on that amount? When does the balance need to be paid off
- I laid off 10 employees last week, do I still qualify? If I need to bring them back in order to qualify, when do they need to be on payroll?
- Is my loan forgivable if some employees are laid off before the end of the 8 week period?
Is there anything that is expressly excluded from the definition of payroll costs?
Yes. The Act expressly excludes the following:
- Any compensation of an employee whose principal place of residence is outside of the United States;
- The compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary;
- Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and
- Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).
The SBA will continue to publish additional information and clarification once the program launches. Please see the SBA’s Information Sheet, published here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
Additional details, presented in Q&A format, may be found in the SBA’s Interim Final Rule governing the program, which is located here: https://www.sba.gov/document/policy-guidance--ppp-interim-final-rule
How long will it take to process my application?
We sincerely appreciate your patience and assure you that Boston Private has made the PPP program a priority to assist our valued clients. The program requires that each loan is approved by the SBA before we are able to complete the approval and documentation process and disburse funds. Once the SBA has authorized funds, Boston Private will perform additional due diligence to process the loans and disburse the funds into your account. The SBA has issued guidance that banks should compete this process within 10 days of SBA authorization. Boston Private is committed to getting much needed funds into your hands as quickly as possible.
How can I check the status of my application?
The status of your application is available on the online portal and is updated in real time. Log in to the portal and view the status in the dashboard section.
The relevant stages are:
- Awaiting Client Signature
- Complete (which means the loan has been booked and funded)
What do I do if I want to withdraw my application?
If you have not already signed your loan agreement, you may request to withdraw your application by submitting an email to the SBA in-box at [email protected].
How can I withdraw my application if I have already signed documents and the money is deposited in my account?
If you signed their loan agreement and the loan is booked to your account, Boston Private can no longer make adjustments. You may repay your loan, however. Please email the SBA Inbox at [email protected] to request loan repayment.
Loan Terms & Funding Options
Where will my loan be deposited?
Your loan will be deposited into your existing Boston Private deposit account.
Can money be held back (a/k/a not funded right away) but act more like a line of credit?
No, once the funds are distributed to your account they have to be used over the next eight weeks. 75% must be used for payroll, 25% can be used for other things such as utilities, rent. You will need to supply supporting documents after the eight weeks to have the loan forgiven. Please see the SBA website www.sba.gov for guidance.
What are the terms of loan forgiveness?
The terms of forgiveness will be established by the SBA. The SBA’s PPP Rule states that they will be issuing additional guidance on loan forgiveness. After that guidance is issued, the bank will contact you regarding the process and necessary documents.
So far, the SBA has provided the following general information about loan forgiveness in its PPP Rule:
- The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest if the borrower uses all of the loan proceeds for forgivable purposes and compensation levels are maintained.
- The actual amount of loan forgiveness will depend on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020.
- The eligible amounts will be measured over the eight-week period following the date of the loan.
- Not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.
Additional Assistance Options
What are the types of assistance that are available for existing Boston Private clients beyond PPP Loans?
Boston Private is providing support through additional programs:
- A commercial debt reserve program to support commercial real estate clients,
- A loan modification program for corporate and nonprofit clients, and
- A mortgage relief program to keep our borrowers securely in their homes
Please contact your Boston Private relationship manager to see if you may qualify.
What other assistance is available for clients who have been negatively impacted by the coronavirus?
The SBA is providing small business owners with access to special financing options. They can also help match you with additional lending partners. Please see the SBA website for details.
You may also contact the Community Outreach Department at your area Federal Reserve Bank.