Paycheck Protection Program

The Paycheck Protection Program is one of the largest sections of the Coronavirus Aid, Relief, and Economic Security (CARES) Act which provides small businesses with much needed funds to pay up to 8 weeks of qualified expenses. 

Funds are provided in the form of loans that do not require collateral or personal guarantees and could be fully forgiven* as long as:
1. The loan proceeds are used to cover payroll expenses, most mortgage interest, rent, and utility costs over the covered period after the loan is made; and
2. Employee and compensation levels are maintained.

*Consistent with section 1102 of the CARES Act, the Borrower Application Form requires PPP applicants to certify that "current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." 

For complete and proper guidance, we recommend you go to:


• Who can get a loan?

This program is open to Bank of Utica customers.  If we have your business's main operating account, then you are eligible to apply for a PPP loan with us.  If you do not yet have an account with us but wish to open one, we would be happy to help!  Click here to learn about the different types of business checking accounts that we offer then give our Personal Banking Department a call at 315-797-2700 ext. 264.

Keep in mind, you must be a small business with fewer than 500 employees.  This includes:

  • Self-employed and independent contractors
  • Sole proprietorships
  • Non-profit 501(c)3 organizations
  • Veterans organizations 501(c)19
  • Tribal business concerns

Businesses with the NAICS Code beginning with 72, such as restaurants and hotels, receive further expansions of eligibility for PPP.

• How can I apply?

You will need to fill out the Paycheck Protection Program Borrower Application Form which can be found on the SBA's website, please scroll down to the bottom of the page:

We strongly suggest you drop off the SBA application and supporting payroll documentation to us physically in our drive through. If you are unable to drop off the physical documents, then you can email them to us here, however for safety purposes we recommend you to drop off the materials. Following are examples of documentation you will be need with your application to establish eligibility including, if applicable:

•Payroll Tax Filings, such as 2019 Quarterly IRS 941 forms •1099 forms
•Payroll Processor Records •Income & Expense reports for a sole proprietorship
•Documentation showing health insurance premiums paid by the company under a group health plan
•Documentation showing retirement plan funding paid by the company

We recommend you to work with your accountant to make sure the application is filled out correctly and the appropriate documentation is submitted properly. Please note: the documentation you submit must succinctly support the loan request amount on your application. If your payroll records consist of hundreds of files, you will need to provide a summary that shows how you arrived at your loan request amount and then you will need to certify its accuracy. Also please let us know the following information:

•Your company's NAICS code
•The date your company was established

• What can PPP loans be used for?

PPP loans can be used for payroll, employee benefits, mortgage interest, utilities, rent, and interest on debt that existed as of February 15, 2020.

• How much can I borrow?

The size of the loan cannot exceed 250 percent of an employer's average monthly payroll during the 1-year period before the date on which the loan is made. The maximum loan amount is $10 million or an amount that you will calculate using a payroll-based formula specified in the Act, as explained below:

Maximum loan = 2.5 X average total monthly payroll costs incurred during the year prior to the loan date.  For businesses not operational in 2019: 2.5 X average total monthly payroll costs incurred for January and February 2020

Maximum loan = 2.5 X average total monthly payments for payroll costs for the 12-week period beginning February 15, 2019 or March 1, 2019 (decided by borrower) and ending June 30, 2019

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

• What is considered a "payroll cost"?

• Salary, wage, commission, or similar compensations and payment of cash tips or equivalent
• Payment for vacation, parental, family, medical or sick leave
• Allowance for dismissal or separation
• Costs associated with group health care benefits, including insurance premiums
• Payment of any retirement benefit
• Payment of state or local tax assessed on employee compensation

• Compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the period February 15, to June 30, 2020
• Payroll taxes, railroad retirement taxes, and income taxes
• Any compensation of an employee whose principal place of residence is outside of the U.S.
• Qualified sick leave or family leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act

• Does the business need to prove that it has a hardship to qualify for the loan?

You will have to provide a good faith certification that the uncertainty of current economic conditions makes the loan request necessary to support ongoing operations.

• Do I need to first look for other funds before applying to this program?

No.  The SBA has waived their Credit Elsewhere requirement.

• How many loans can I take out under this program?

Only one.

• What are the terms of a PPP loan?

2 years with a fixed rate of 1% if made before June 5, 2020. For any loan made after, the loan will mature in 5 years with the same fixed rate..

You will not have to make any payments for 6 months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment.

• How does the PPP loan forgiveness work?

The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest.  That is, the borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes described above and employee and compensation levels are maintained. 

The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the covered period following the date of the loan. See the Paycheck Protection Program – Forgiveness page for more information.