Centric Bank Again Accepting PPP Applications from Businesses That Are Not Already Customers

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Image via Centric Bank.

An additional $900 billion coronavirus relief package has been signed into law and includes $284 billion in new funds for the Paycheck Protection Program, including a second draw option for prior PPP borrowers who have exhausted their initial PPP loan. The program will make new loans through March 31, 2021 or until the new funding is exhausted.

Please review the U.S. Treasury website for the program requirements and borrower information before applying for a second draw loan. If, after reviewing the information, you believe you meet the program requirements, apply following the instructions below.

Centric Bank stands ready to begin the application process for our customers, as well as small businesses and non-profits in our service areas: Central Pennsylvania, Philadelphia and Suburban Philadelphia, Southern New Jersey, and Cherry Hill, N.J.

Apply for a New PPP Loan with Centric Bank

We learned a lot from the first round of loans, and we’ve made enhancements to our PPP Portal to automate the application process and provide an improved user experience. Our portal will walk you through calculating the amount of eligibility through a series of questions, and signing of the application will be completed electronically through the use of a safe and convenient DocuSign process.

  1. Contact Centric Bank to open your deposit account, if you do not already have one, for loan funds disbursement.
  2. Complete our PPP Average Monthly Income Worksheet to calculate the dollar figure of your Average Monthly Payroll. This figure will be leveraged within the PPP Application Portal when completing your application request. PLEASE NOTE:  Borrowers must subtract any compensation paid to an employee or owner in excess of $100,000 on an annualized basis.  
  3. Begin your application in our PPP Application Portal. If you have an existing PPP loan with Centric Bank and have already registered your email address in the Portal for a forgiveness request, use your same e-mail and password to sign back into the platform. Once signed in, choose the option to Start Your Application. If you have never signed into our Portal, you will need to enter an e-mail address and create a password to register.

There are five tabs which you will work through to complete your application:

  • Business Information will collect basic information on the applying entity.
  • Loan Information will collect information on the expected purpose of the loan and if a PPP first draw was taken in a prior round.
  • Eligibility will collect your responses to several eligibility criteria statements.
  • Documentation will walk you through the supporting documentation you will be required to submit. This may include:
    • Identification of applicant
    • Formation documentation
    • Tax or Financials documents
    • Business License
    • Payroll documentation

Once you have submitted your application through the Portal, and we have reviewed it, the application will be sent to you for electronic signature. After we have received your signature, your application and documentation will be sent to the SBA for consideration. Once approved, all required loan closing documentation will be sent electronically for your signature.

Our PPP support team is ready to assist with questions through our dedicated Centric Center. Please contact one of our PPP specialists at 717.686.4973 or CentricCenter@CentricBank.com.

New PPP Applicants

If you have not previously received a PPP loan, and would like to borrow for the first time, please review the U.S. Treasury website for the program requirements and borrower information. If you feel you meet the requirements, you may follow the same steps above to apply.

Forgiveness Application

To apply for forgiveness from an existing PPP loan with Centric Bank, start HERE.

Program Summary

Eligibility

You are eligible for a second draw loan if you have exhausted your first PPP loan and you have no more than 300 employees, and you have experienced a greater than 25 percent reduction in gross receipts during the first, second, third, or fourth quarter in 2020 relative to the same quarter in 2019.

Entities with significant ties to China are ineligible for a second draw loan.

Loan Amount

The maximum loan amount is the average monthly payroll costs for the entity during the 12 months prior to the loan or, at the election of the borrower, 2019 multiplied by 2.5 (or 3.5 for employers in the accommodation and food service industry).

Seasonal employers utilize average monthly payroll costs for a 12-week period between Feb. 15, 2019 and Feb. 15, 2020. 

A loan may not exceed $2 million.

Second Draw Loan Forgiveness

The amount of loan that can be forgiven is the lesser of:

  • Costs incurred or expenditures made between the date of the origination of the loan and ending on a date of your choosing that is between eight and 24 weeks after origination for: (a) payroll costs, (b) qualifying mortgage interest or rent obligations, (c) covered utility costs, (d) covered operations costs, (e) covered property damage, (f) covered supplier costs, and (g) covered worker protection expenditures; or
  • Payroll costs for the same period divided by 0.60 (this serves as a cap on the total loan forgiveness to ensure that at least 60 percent of the total amount forgiven is for payroll costs).

Like original PPP loans, the amount of loan forgiveness can be reduced if the borrower has (1) reduced the number of employees or (2) employee salaries by more than 25 percent. However, the same safe harbors that apply to original PPP loans apply to Second Draw loans.

Please refer to the U.S. Chamber of Commerce’s Guide to Small Business COVID-19 Emergency Loans for answers to the most common questions about the latest round of Paycheck Protection Program government funding.

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