These questions and answers are being provided as a convenience. The answers are based on our interpretation of the SBA Final Rule. This information does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. The information below may not constitute the most up-to-date legal or other information and Enterprise Bank & Trust may update this information without notice. You should contact your attorney to obtain advice with respect to any particular legal matter below. Enterprise Bank & Trust gives no warranty and accepts no responsibility or liability for the accuracy or the completeness of the information and materials contained below. All liability with respect to any action taken or not taken based on the content below are hereby expressly disclaimed.
What is the Paycheck Protection Program (PPP)?
The PPP is a federal loan program that is designed to help small- and medium-sized businesses impacted by the coronavirus (COVID-19) to retain their workforce. The loan is an SBA 7(a) loan with the following terms:
- 1.00% fixed interest rate
- Deferred payments for six months
- Repaid over a two-year term
- Up to 100% of the principal and accrued interest may be forgiven after eight weeks
One of this program’s significant features is you can apply for loan forgiveness after receiving the funds as long as the funds are used to fund payroll and other specific uses during the covered period. Forgiveness can be up to 100% of the loan and accrued interest. Another unique feature is the loan deferment, meaning you won’t have to pay principal and interest on your loan for the first six months.
Am I eligible for this loan?
Small- and medium-sized businesses and nonprofit organizations that were in operation on or before February 15, 2020 with 500 or fewer full- or part-time employees (independent contractors can apply on their own and do not count toward the employee count) are generally eligible to apply for this loan. Please visit the Treasury PPP Information sheet for more information about eligibility.
How do I apply for this loan?
You can download the application here. If you have already applied, please do not apply again, as this may delay your application.
If I do not have an Enterprise checking or savings account, will I need to open one if I am approved for an SBA PPP loan?
Yes, an Enterprise checking or savings account will be required to close and fund the loan.
Where can I find my industry code?
Please visit the NAICS code section on the SBA website. This is required information for the SBA to submit your application.
Are there any other products available as part of the relief package that could positively impact (forgiveness, cover payments, etc.) my business loan with Enterprise?
Yes. For example, if you have an existing SBA loan with the bank, there is payment relief available for that specific SBA loan during the remainder of 2020. You can find additional information on our COVID-19 Customer Information page or discuss options with your Relationship or Portfolio Manager.
When will I receive funding if I submitted an application?
Enterprise is working to approve your loan and disburse funds as fast as possible. Due to high volume, we are unable to provide you with an exact time. Your loan will be funded within 10 calendar days from SBA approval, as long as we receive signed and completed paperwork from you in a timely manner. If we do not receive paperwork back in a timely manner, the SBA requires your loan application be canceled if not funded within 20 calendar days.
I submitted my application and didn’t hear back. When will I hear something?
You will hear from Enterprise as soon as the SBA accepts your loan application.
I submitted my application and want to change the amount. What should I do?
No changes are permitted after your PPP loan has been funded. Please contact your Relationship or Portfolio Manager to discuss any necessary changes prior to funding your loan.
What are the forgiveness rules and when will my loan be forgiven?
Details about the forgiveness rules have not yet been released by the SBA. Please visit our SBA PPP Loan Forgiveness page for more information.
I have received the loan document. Where is information about the loan forgiveness?
You can reference Section 1106 of the CARES Act (the “Act”) regarding forgiveness of the loan, which will be determined at a later date in accordance with the Act. Your Note refers to the Act in Section 3, Payment Terms, and makes the Note subject to the Act.
What can I use my funds for?
The permitted use of proceeds are: 1) payroll costs, 2) rent, 3) utilities, 4) interest on mortgages and 5) interest on other debt obligations on debt incurred before February 15, 2020.
Who can help answer my question if it’s not on the website?
Due to the overwhelming number of questions, we are asking borrowers to discuss questions with their legal counsel, financial advisor or accountant for assistance. Ultimately, the accuracy of the calculation is the responsibility of the applicant. For more information on the program, you can review the SBA website at SBA.gov.
Can I repay my PPP loan?
Yes, Borrowers may repay their PPP loan at any time without a prepayment penalty. You will be charged accrued interest on the PPP loan for any time it was outstanding. For repayments after May 18, 2020, the certifications you made on your application remain subject to SBA review.