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Emergency Relief SBA Loans

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UMassFive is proud that we are an approved Small Business Administration (SBA) lender for the Paycheck Protection Program (PPP), a key component of the recently enacted CARES Act.

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Please note: the PPP loan application deadline has been extended to August 8.

Guidance on PPP loan forgiveness applications will be provided after August 8. 

For additional information, please email our Commercial Services Division and reference the resources below.

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As a part of the CARES Act of 2020, the Paycheck Protection Program (PPP) provides loans to small businesses (generally under 500 employees) that are designed to offer a direct incentive to keep their workers on the payroll. See below for the answers to common questions.


Jump to:

What is my Maximum PPP Loan Amount?
How Can I Use a PPP Loan?
What is the Interest Rate and Term On My Application?
When Does Repayment Begin?
Can My PPP Loan Be Forgiven?
What If I'm not a Member of UMassFive?
Additional Resources


WHAT IS MY MAXIMUM PPP LOAN AMOUNT?

Small business loan applicants are generally eligible to borrow up to a maximum amount that is calculated using a formula that takes the average monthly payroll costs for the most recent 12 month period (calendar year 2019 can also be used) and then multiplies that amount by 2.5.

Payroll costs over 12 months include the following:

  • Salary and wages up to a maximum of $100,000 per employee.
  • Payments made for vacation, parental, family, medical, or sick leave.
  • Payments made for employee benefits such as group health care coverage, employer paid retirement plan contributions, employer paid state and local taxes, and certain other less common costs as outlined in the CARES Act.

HOW CAN I USE A PPP LOAN?

The PPP loan proceeds must be used for the items identified below:

  • Payroll and benefit costs as defined above
  • Rent or lease payments
  • Utility payments
  • Mortgage interest payments
  • Other less common items as outlined in the CARES Act

WHAT IS THE INTEREST RATE AND TERM ON MY PPP LOAN?

The interest rate will be one percent (1.00%). Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.

WHEN DOES REPAYMENT BEGIN?

Loan payments will be deferred for the first six months following the date of the loan. However, interest will continue to accrue on PPP loans during this six month deferment.

CAN MY PPP LOAN BE FORGIVEN?

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Please find detailed information on the SBA's website.

WHAT IF I’M NOT A MEMBER OF UMASSFIVE?

Please email us to establish your business membership. We'll have a member of our team reach out to you directly to collect the information we'll need to process your UMassFive business membership, and then your PPP loan application.