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Small Business Relief

A Helping Hand to Navigate Uncertain Waters

Small Business is the backbone of our shared communities no matter the economic landscape. We now have an opportunity that truly represents a watershed moment to ensure those affected have access to much needed funds that will continue fuel employment and keep our economy running. Kensington Bank has a rich history of providing assistance to small business in each of the communities we serve. Today’s uncertain environment is no exception. We stand ready to hold true to our tradition of community banking, now more than ever.

Coronavirus Aid, Relief, and Economic Security (CARES) Act introduces PPP

The Paycheck Protection Program (PPP) is a provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law by the President on March 27, 2020. The PPP authorizes $350 billion for small businesses negatively affected by the COVID-19 pandemic. The program allows businesses to apply for Small Business Administration loans of up to $10 million with the intent that this money will be used by companies to retain their workforce and operations amidst the economic downturn caused by the novel Coronavirus.

Notice: PPP Resumes April 27, 2020

The SBA resumes accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 9:30 am CDT. Kensington Bank will continue to assist small businesses with their PPP applications on a first-come, first-serve basis while the second round of fund allocation is available. Please review the application process below. We ask for patience as our lending team handles higher than usual application volume.

Paycheck Protection Program

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
  • Program provides the opportunity loan forgiveness subject to program requirements
  • Small businesses with 500 or fewer employees or self-employed individuals may be eligible
  • Funding cap in place, business are urged to apply quickly
  • Applications are submitted directly to your banker
  • For complete program details visit the SBA website

It is very important to review each tab and follow the steps in the process completely. Once we have collected the required information, your loan application will be put into the queue to be processed. Please ensure accuracy and provide all of the requirements to streamline the process.

  1. Review the PPP Overview & Info Sheet For Borrowers
  2. Download & complete the PPP Application
  3. Download, complete, sign & date the Kensington Bank Acknowledgement
    1. You can obtain your NAICS code here
  4. Gather appropriate documentation – See “documentation” tab
  5. Securely email the application, acknowledgement, and documents to your Kensington Bank Commercial Banker or directly using “PPP Application” and your business name in the subject line

Payroll Documentation

  • Provide documentation of your reported “Full Time Equivalent” employees that was used on the CARES Act PPP application. Please use the reporting date of February 15, 2020 for the “Number of Jobs” box on the application.
  • Provide documentation of your reported “Average Monthly Payroll” on the CARES Act PPP applicationYour banker will want to understand how you came up with your amount.
  • Follow the instructions detailed on Page 3 of the application to calculate this amount.
  • In order to properly calculate your monthly payroll there are a number of  calculators available that may be of help. Contact your Kensington Bank Banker for additional information. Please note: you will be certifying this number and we must let you know a calculator cannot be guaranteed to be the correct number (due to changing guidelines to the program).
  • When calculating the “Average Monthly Payroll” amount, please be aware of the rules regarding employees that are paid over $100,000 annualized income. This information can be found on Page 3 of the application.
  • Provide documentation of the payroll amounts you have used. Documentation should include official payroll filings that were sent to the IRS. If supporting documentation is required you may also send internal documents, however, they will be used to support the official IRS payroll reporting.

New Customers

  • Thank you for thinking of Kensington Bank and applying for the Payroll Protection Program. We greatly appreciate the opportunity to serve you and your banking needs. We strive to fundamentally help our customers reach long-term financial stability by earning your trust as a banking partner. As we start this relationship, we do have additional documentation we’ll need to proceed.
  • Please provide organizational documents as appropriate per the following document: Business Account Documentation Requirement form.
  • Certification of Beneficial Owner form
  • Proof of identity (Driver’s License etc.) for each applicant
Please note that there are specific requirements in order to initiate the forgiveness clause related to this loan. Some of the requirements are as follows:
  • Proceeds of the loan must be used for specific purposes. Those purposes include payroll expenses, mortgage interest, rent, and utilities.
  • At least 75% of the proceeds must be used for payroll expenses over the next 8 weeks. If less than 75% of the proceeds are used towards payroll expenses it may reduce or eliminate the forgiveness features of the loan.
  • In the future, documentation will need to be provided that supports the use of the proceeds of this loan. Please keep very detailed notes regarding the use of these funds over the next 8 weeks.
    • Best Practice Suggestion: Some businesses are setting up a specific deposit account just for these proceeds to be kept. If you are interested in opening a separate account at Kensington Bank, we would be happy to assist with this process.
    • Best Practice Suggestion: The easier it is to connect the use of loan proceeds with receipts will enable speed in decision making regarding loan forgiveness during the loan term. This will be very important in the near future!
    • Please collect and retain official payroll tax filings and other direct evidence as documentation for an efficient decision making process during the loan term.

What can PPP Loans be used to pay for?

  • Payroll costs including benefits
  • Rent on lease agreements in force before Feb. 15, 2020
  • Utility expenses for which service began before Feb. 15, 2020
  • Interest payments on mortgage obligations that were incurred before Feb. 15, 2020

What counts as Payroll costs?

  • Compensation to employees in the form of wages, salaries, tips or commissions
  • Payment for family, medical or sick leave
  • Severance payments
  • Health insurance expenses
  • Retirement expenses
  • State and local taxes incurred from compensating employees
  • Note: Any portion of employee salaries in excess of $100,000 or more are not eligible as a payroll cost under the PPP; in addition, employees with a principal residence outside of the United States are not covered under the PPP either

Am I eligible?

  • Businesses with 500 employees or fewer are eligible for the PPP.
  • This includes:
    • Tax-exempt nonprofit organizations
    • Veteran’s organizations
    • Tribal business concerns

How much money can I borrow through the Paycheck Protection Program?

  • PPP loans can be up to $10 million or 2.5 times your average monthly payroll, whichever is less.

How many loans can I take out Paycheck Protection Program?

  • One

Will my loan be forgiven?

  • PPP loans may be eligible for full or partial forgiveness, depending on how the funds are used. Generally, if you use PPP funds to retain your workforce, your loan may be forgiven. See the requirements tab

How can I request loan forgiveness? 

  • You can request loan forgiveness through your lender. This process will require you to provide documentation that outlines your payroll, mortgage, rent and utility costs.

When do I need to pay back my loan?

  • PPP loans have a two-year term. However, payments will be deferred for six months with the potential for a one-year deferral. Note that interest will still accrue during this time.

What will my interest rate be?

  • PPP loans have an interest rate of 1%.

How long will the Paycheck Protection Program be available?

  • According to the SBA, borrowers can apply for a PPP loan through June 30, 2020. However, we encourage applicants to apply as soon as possible. This program is first-come, first-served.
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Upon receipt of the aforementioned required documentation, the application will be processed promptly by the Kensington Bank lending team. Kensington Bank is an established SBA 7(a) Express Lender and will be utilizing the SBA required software to submit all loan applications. Please note that we will apply all available resources to get these funds into your possession as quickly as possible. Due to the fact that we are dependent on a third party provider for the documentation and authorization some delays may develop. Rest assured that the Kensington Bank lending team will be guiding your application through the process with the utmost care and concern. Reach out directly with any specific questions about your loan application.

We anticipate that loan documents and funds will be available 1 – 4 weeks after loan application submission. This estimate is based on the ability of the United States Small Business Administration to process the applications and respond in a timely manner. We will be in communication with you regarding the availability of the funds.

Please note that the program details are specific to the most current information related to the CARES Act Paycheck Protection Program though the United States Small Business Administration. Program details are subject to change and Kensington Bank cannot guarantee that your application will be accepted.

Other Disaster Assistance Programs through the SBA

The Small Business Administration, or SBA, is a federal agency that provides support to entrepreneurs and small businesses. With the impact of the unprecedented economic disruption due to the Coronavirus (COVID-19) outbreak facing our nation’s small businesses, the CARES Act established several new temporary programs in addition to the Paycheck Protection Program and traditional SBA funding programs.

Please visit the SBA Coronavirus Relief Options page for all available programs.

SBA Only Programs Include

EIDL Loan Advance

This is exclusive program is only available and submitted directly through the SBA. This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.

Apply Directly with the SBA

  • The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic.
  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.
  • Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
  • The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.

To apply for a COVID-19 Economic Injury Disaster Loan and loan advance, SBA Application

SBA Debt Relief

The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.

As part of SBA’s debt relief efforts,

  • The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
  • The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.

For Complete Details Please Visit the SBA Website

Stop by any of our offices, give us a call at (866) 965-2419, or contact us.

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