NH businesses can apply for PPP loans at smaller banks and credit unions from Friday

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New Hampshire businesses and commercial organizations can apply for the latest Federal Paycheck Protection Program forgivable loan program at small banks and credit unions starting Friday and at any bank or cooperative credit from Tuesday.

“We are delighted,” said Joe Bator, executive vice president and lead lender at Bedford-based Primary Bank, which has approved more than 700 loans worth $92 million in the first two loan cycles. PPP. It’s going to be a busy three-day weekend for us,” he said.

The PPP is rolling out more slowly this time to avoid the mad rush that has planted computers at the US Small Business Administration, which both guarantees, approves and ultimately cancels loans if they are spent on payrolls and d ‘other expenses. Big banks and lenders dominated the program during the first rollout.

To give more diverse and rural businesses a fighting chance this time around, the program launched on Monday, January 11, only through community financial institutions. Ironically, this froze New Hampshire because no CFIs were participating.

On Friday, January 15, the SBA opened the program to banks with less than $1 billion in assets. There were a lot of them in the Granite State, but the banks grew here both through mergers and organically. In addition to Primary, six other New Hampshire-based banks are eligible: Franklin Savings Bank, Woodsville Guaranty Savings, Salem Co-operative Bank, Savings Bank of Walpole, Claremont Savings Bank, Millyard Bank and First Seacoast Bank, although it There are small banks from other states with branches here, and New Hampshire businesses can also approach any state bank for a loan.

Eight New Hampshire credit unions also have less than $1 billion and are also accepting applications.

Some new rules

The new deployment will be different in other ways. For one, the loans will not be instantaneous. Applications will be held “for a short time” to ensure they are eligible, said Rachel Roderick, SBA assistant district manager in New Hampshire.

There are also other differences, the main one being that those who have already received a PPP loan can apply for another one, but not for as much money (max $2 million vs. $10 million) and they will have to prove that ‘they suffered a 25% drop in revenue in one quarter. Another change involves 501(c)(6) nonprofit organizations, such as chambers of commerce and professional organizations, which can apply for assistance this time around.

This is a “welcome change and is an option we are actively considering as part of our planning for the year as it will help us continue to be a key resource for our members,” wrote Michael J. Skelton, CEO of the Greater Manchester Chamber in response to an email request.

The New Hampshire Lodging and Restaurant Association also plans to participate, CEO Mike Somers said.

“It’s been a tough year,” Somers told NH Business Review. “We have seen a significant reduction in revenue.”

NHLRA members – as well as anyone else in the hospitality industry – will also benefit from the new law, as their authorized loan amount would be 3.5 months of payroll, as opposed to 2.5 months. to which other companies are entitled.

There isn’t such an extra boost for venues in the PPP portion of the stimulus package, but they may want to wait until the rules for the “Save our Stages” portion of the stimulus package are released. , as this caps the maximum loan at $10. million rather than $2 million.

Another little-known but key change in the new law is that those who participate in the PPP can also take advantage of the employee retention tax credit, but not for the same expenses claimed under the PPP.

The new law provides a credit on payroll taxes, so they can be made immediately for some, quarterly for others, and with a credit of up to 80%, a claimant can end up earning up to 14 $000 per employee. It is also retroactive to last year.

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