COVID-19

Statement from Crystal Pearson, VP Commercial Loan Officer
4/3/2020

Here at Wells River Savings Bank we will work diligently to complete your CARES ACT: Paycheck Protection Program (PPP) request. To expedite your application please read the following information and scan your request to me at cpearson@wrsb.com. If you choose to leave this information at a WRSB branch drive-up location they will forward your application to me. 

• As of Thursday, April 2, 2020 at 11:45pm this is the most current information that is available to us. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
• Forgiveness of your loan by the SBA is contingent on several factors, including the number of employees you have retained. Please review all the requirements very carefully to be sure you will qualify for the forgiveness you expect.
• If you are seeking the CARES ACT: Economic Injury Disaster Loan (EIDL) please apply directly with the SBA: https://covid19relief.sba.gov/#/

If any of these items are missing or incomplete, we will not be able to process your application, thus delaying your possible approval and receipt of loan proceeds. Please note this list is subject to change as we are awaiting for lender additional guidance from the SBA.

1. Completed and signed application (Please note the various signature lines and initial boxes – all must be acknowledged)
   • PPP borrower application form *THIS SBA APPLICATION FORM 2483 WAS UPDATED 4/3/2020
   • If a question is not applicable please complete with N/A, no fields should be left blank.
   • Complete the email address field as this will be the best way for us to communicate with you any documentation. A telephone number is the 2^nd preferred method.

2. Additional required documentation to include with the signed application: We are required by the SBA to verify the payroll expense figure you enter on your application and we cannot do so without these documents and evidence of your calculations. You are also eligible for a PPP loan if you are an individual who operates under a sole proprietorship or as an independent contractor or eligible self-employed individual, you were in operation on February 15, 2020. You must also submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099 MISC, or income and expenses from a sole proprietorship.  For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.  
   • The supporting 2019 tax forms/schedules used to calculate “Payroll Expense” as defined under the PPP guidelines (please see below for the list of tax forms for different sizes and types of businesses).
     • All employers:  Copy of 2019 W-3 Statement and 2019 W-2 Statement for every employee; or
     • For employers with more than 25 employees which utilize an independent payroll service:  Copy of the Form 941 for each quarter in 2019 plus a copy of the 2019 Payroll Register/Report as prepared by an independent payroll service, with a reconciliation to the 2019 quarterly Form 941s
     • For self-employed individuals:  The Schedule C from their 2019 tax return
     • For New Business: 2019 (January 1, 2019- December 31^, 2019) and Q1 2020 (January 1, 2020- March 31, 2020) from payroll company or self-prepared payroll information. Reports may include names of each employee, hire date, average hours worked per week and total payroll amounts per pay period
     • Documentation (e.g. spreadsheets) clearly showing your calculation of “Payroll Expense” as entered in the application, including deductions for those employees compensated at an annual rate exceeding $100,000.
   • How do I calculate the maximum amount I can borrow?
     
     Step 1: Aggregate payroll costs (defined in detail below) from the last twelve months for employees whose principal place of residence is the United States.
     Step 2: Subtract any compensation paid to an employee in excess of an annual salary of $100,000 and/or any amounts paid to an independent contractor or sole proprietor in excess of $100,000 per year.
     Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12).
     Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5.
     Step 5: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).
     
     The examples below illustrate this methodology.
     Example 1 – No employees make more than $100,000
     Annual payroll: $120,000
     Average monthly payroll: $10,000
     Multiply by 2.5 = $25,000
     Maximum loan amount is $25,000
     
     Example 2 – Some employees make more than $100,000
     Annual payroll: $1,500,000
     Subtract compensation amounts in excess of an annual salary of $100,000: $1,200,000
     Average monthly qualifying payroll: $100,000
     Multiply by 2.5 = $250,000
     Maximum loan amount is $250,000
     
     Example 3 – No employees make more than $100,000, outstanding EIDL loan of $10,000
     Annual payroll: $120,000
     Average monthly payroll: $10,000
     Multiply by 2.5 = $25,000
     Add EIDL loan of $10,000 = $35,000
     Maximum loan amount is $35,000
     
     Example 4 – Some employees make more than $100,000, outstanding EIDL loan of $10,000
     Annual payroll: $1,500,000
     Subtract compensation amounts in excess of an annual salary of $100,000: $1,200,000
     Average monthly qualifying payroll: $100,000
     Multiply by 2.5  $250,000
     Add EIDL loan of $10,000 = $260,000
     Maximum loan amount is $260,000

3. Copy of your Certificate of Good Standing for the period covering February 15, 2020 from the applicable Secretary of State’s Office:
   • Vermont Secretary of State – https://www.vtsosonline.com/online/BusinessInquire/
   • New Hampshire Secretary of State – https://quickstart.sos.nh.gov/online/BusinessInquire

Crystal Pearson
VP Commercial Loan Officer
cpearson@wrsb.com
802-757-7996
NMLS# 1962397

Paycheck Protection Program
4/2/2020

The Paycheck Protection Program has been created to help eligible small businesses to maintain their payroll during the COVID-19 crisis. This program is 100% federally guaranteed loans with loan forgiveness available. For up to date information please visit the U. S. Treasury's web site.

Paycheck Protection Program FAQ

Paycheck Protection Program Small Business Guide and Check List

Dear Customers:

I would like to take a few minutes to talk about the CoronaVirus (COVID-19), its impact on our world and local community, and what we are doing to respond. Our response is rooted in our mission as the Good Neighbor Bank to make our communities better places to live, work, and raise families.

First, and most important, we are concerned about the seriousness of the virus, and its impact on our communities. The main priority for our nation is to limit the spread of the disease in the next month. We are being asked to modify our behavior to reduce the risk of infection, whether by avoiding unnecessary travel, or staying away from large crowds. In effect, most of us are practicing a form of self-quarantine. Additionally, we are being vigilant in keeping our public places as virus-free as possible, regularly disinfecting our lobbies. Our tellers will be wearing gloves to handle currency, checks and deposits. We will be transacting significant business through the mail and internet. We encourage our customers to use our internet and mobile banking, ATM’s, telephone banking, and our customer care center.

Second, we are reviewing our options to minimize the financial impact on our customers. The Federal Reserve has lowered rates to historic lows to stabilize the Treasury system. For our loan customers, we expect that there may be disruptions in income and an increase in expenses, or both. We will be working with borrowers to work through the next few months, whether it might be deferring payments, or short-term working capital loans.

We encourage all our customers to review the recommendations of experts, especially the information on the Center For Disease Control web-site, www.cdc.gov. We will be posting a list of valuable resources below as more become available.

At the national and state levels, we are in an official state of emergency based on the developments in the Corona virus (COVID-19) pandemic. We are all being asked to do our part in helping to prevent the spread of the virus by limiting contacts. In response, our immediate job is to implement safeguards to protect our customers, our team, and our communities.

We will be assessing events as they unfold, and will adjust our response accordingly. Please contact any of us at the bank if you have any questions or concerns. I am sure our team will be able to work with you to provide excellent service in this emergency.

Be Safe. We are all in this together, and we will get through it.

Above all, remember we are all in this together. We thank you for your continued support and for the opportunity to earn your business. Most of all, we value you for your friendship.

Frank Tilghman

Executive Vice President

Direct Line:     802-757-7970

ftilghman@wrsb.com

NMLS# 1891446

Small business owners suffering economic injury due the COVID-19 pandemic can apply for Small Business Administration (SBA) disaster loans, following a statewide disaster declaration.

SBA’s Economic Injury Disaster Loans (EIDL) offer up to $2 million in assistance per business, providing economic support to overcome temporary loss of revenue. EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations, which are also eligible for EIDLs.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers EIDLs to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business suffered any physical property damage.

SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.  Small businesses with credit available elsewhere may not be eligible.

To apply online, visit https://disasterloan.sba.gov/ela/. Documents that may be requested when applying include recent federal tax return, profit-and-loss statement and balance sheet.

For more information, call the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.