Paycheck Protection Program (PPP)

During this unprecedented time, we are here for our neighbors and small business community more than ever. We understand that the pandemic has affected all facets of life and has taken an exceptional toll on our local small businesses. As a Small Business Association approved lender, we are taking applications for the Paycheck Protection Program (PPP) on a first-come, first served basis.

The PPP guarantees loans to small businesses to pay for their employees’ payroll expenses for up to 24 weeks. If the loan proceeds are used according to the PPP rules, the loans are forgiven at the end of the 24 weeks. Naveo’s efforts can be a lifeline for many of our business members and their employees: barbers and hairdressers, restaurants, contractors, auto repair shops, non-profits, churches, child care centers and many other business types who have been devastated by the economic consequences of the pandemic.

The loan amounts will be forgiven as long as:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 24 week period after the loan is made; and
  • Employee and compensation levels are maintained.

Payroll costs are capped at $100,000 on an annualized basis for each employee. No more than 40% of the forgiven amount may be for non-payroll costs.

Loan payments will be deferred for 6 months.

How to apply

To apply:

  • Visit this link to download the fillable Paycheck Protection Program Application.
  • Complete and sign the application.
    • Please include documentation of your payroll costs for 2019 (for example, IRS Forms W-3 or 941, reports from your payroll service, internal accounting ledgers for payroll)
    • For existing members, an electronic signature will be accepted.
    • We require a “wet” signature for new members. A high-quality scan or photo is acceptable via email.
  • Send it back to Naveo by:
    • Email: sba-ppp@naveo.org with complete application and attachments.
    • Fax: 617-547-3451
    • Mail: Naveo Credit Union, Attn: SBA Loan Specialist, 493 Somerville Ave, Somerville, MA 02143

Once we receive your signed application, we will contact you to discuss next steps.

Download ApplicationEmail Us

Frequently Asked Questions (FAQs)

The PPP from the US Small Business Administration authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.

The loan amounts will be forgiven as long as:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
  • Employee and compensation levels are maintained. Payroll costs are capped at $100,000 on an annualized basis for each employee.
  • No more than 25% of the forgiven amount may be for non-payroll costs.

Loan payments will be deferred for 6 months.

  • Visit this link to download the fillable Paycheck Protection Program Application.
  • Complete and sign the application.
    • Please include documentation of your payroll costs for 2019 (for example, IRS Forms W-3 or 941, reports from your payroll service, internal accounting ledgers for payroll)
    • For existing members, an electronic signature will be accepted.
    • We require a “wet” signature for new members. A high-quality scan or photo is acceptable via email.
  • Send it back to Naveo by:
    • Email: sba-ppp@naveo.org with complete application and attachments.
    • Fax: 617-547-3451
    • Mail: Naveo Credit Union, Attn: SBA Loan Specialist, 493 Somerville Ave, Somerville, MA 02143

After we receive your complete and signed application, we will contact you to discuss next steps. We anticipate a surge in applications. We ask for your patience while we work to help our other members, neighbors and business community in need.

Please contact us at sba-ppp@naveo.org if you have questions regarding applying or your application status. You can also reach us by phone at 617-702-5116.

All businesses – including nonprofits, veterans’ organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click HERE for additional detail).

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.

You will need to provide Naveo with documentation for your 2019 payroll costs. For example, IRS Form W-3 or 941, reports from your payroll service, internal accounting ledgers for payroll, bank records for payroll checks. For sole proprietorships and self-employed individuals, Schedule C of your Federal Income Tax Return for 2019, or a Profit and Loss Statement for 2019 prepared by your accountant or by yourself.

No. The SBA is waiving the usual requirement that you try to obtain some or all of the loan funds from other sources (i.e., the SBA is waiving the Credit Elsewhere requirement).

It is open until August 8, but we are only receiving applications through August 6. We encourage you to apply as quickly as you can because there is a funding cap and Naveo needs time to process your loan.

In order to have the loan forgiven, you must use the proceeds from the loan on your:

  • Payroll costs, including benefits;
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020.
  • The loan proceeds must be used for allowable costs for the twenty-four weeks after the loan closes.
  • Non-payroll costs must not be more than 40% of the loan amount.

Payroll costs include:

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation; and
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Yes, the PPP covers payroll costs, which include employee benefits such as costs for parental, family, medical, or sick leave. However, it is worth noting that the CARES Act expressly excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127).

Learn more about the FFCRA’s Paid Sick Leave Refundable Credit online.

Your PPP loan can be for up to 250% of your average monthly payroll costs from 2019. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. No more than 40% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until December 31, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

You can submit a request to Naveo. The request must include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. Naveo must make a decision on the forgiveness within 60 days.

1.00% fixed rate.

All payments are deferred for 6 months; however, interest will continue to accrue over this period.

In 5 years.

Yes. There are no prepayment penalties or fees.

No. There is no personal guarantee requirement.

***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***

As part of your application, you need to certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
  • You have not and will not receive another loan under this program.
  • You will provide to Naveo documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. No more than 40% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that Naveo will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.