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 SBA has announced a Second Draw Loan as part of the Paycheck Protection Program (PPP), expanding eligibility and forgivable expenses, beginning January 15, 2021. In addition, the SBA has reopened the PPP for First Draw loans for those that did receive benefits prior to December 27, 2020.

Naveo’s participation and efforts in the PPP 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.

Second Draw PPP Loans

The Second Draw PPP Loan is for eligible borrowers that previously received a PPP loan. A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses.
  • Has no more than 300 employees.
  • Can demonstrate a reduction of at least a 25% in gross receipts between comparable quarters in 2020 versus 2019.

The expanded list of forgivable expenses, include:

  • Software or cloud computing for business operations.
  • Certain supplier costs (Call us for details).
  • Property damage due to public disturbances in 2020, not paid by insurance.
  • Worker protection related to COVID-19, including PPE.
  • Employer-paid group premiums for health care, life, disability, vision and dental insurance.

In addition to those expenses allowed under the original PPP, the Second Draw Loan provides:

  • A more flexible Covered Period for the use of the loan funds to assure for loan forgiveness, between 8 & 24 weeks.
  • A simplified loan forgiveness process for loans up to $150,000.
  • Increased assistance for Accommodation and Food Service Businesses, like restaurants and hotels.
  • Tax deductions allowed for expenses paid with PPP loan proceeds.
  • No reduction of the amount of PPP loan forgiveness by the amount of an EIDL Advance – and restoration for borrowers whose first PPP loan forgiveness amounts were impacted by such reductions.

How to Apply for a Second Draw Loan

  • Contact us by emailing or calling us at 617-702-5116.
    • If your first PPP Loan was through Naveo, we will prefill your application and return it to you via email to sign, initial and date.
      • We may request additional documentation for the 25% reduction in revenues in one quarter of 2020 as compared to the same quarter in 2019.
      • If your first PPP Loan was NOT through Naveo, we will email you an application to fill out and request the required documentation including documentation that your first PPP loan has been fully forgiven.

Second Draw Application

First Draw PPP Loans

First Draw PPP Loans can be used to help fund payroll costs, including benefits, as well as mortgage interest, rent, utilities, worker protection costs related to COVID-19, certain supplier costs (call us for details) and expenses for operations.

First Draw Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained.
  • The loan proceeds are spent on payroll costs and other eligible expenses.
  • At least 60 % of the proceeds are spent on payroll costs.

How to apply for First Draw PPP Loans

To apply:

  • Download the fillable First Draw 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; additional documentation may be requested).
    • 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: with complete application and attachments.
    • Fax: 617-702-5116.
    • Mail: Naveo Credit Union, Attn: SBA PPP Loan Coordinator, 493 Somerville Ave, Somerville, MA 02143.

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

First Draw ApplicationEmail Us