PPP First Draw Information & FAQs

Paycheck Protection Program Loans - First Draw Program (PPP)

A COVID-19 disaster relief program designed to give existing PPP borrowers additional funds

With the Paycheck Protection Program (PPP), small businesses can borrow funds for COVID-19 relief to use for payroll, rent payments and more. Here are some helpful answers to the most common questions we receive on this program.

This FAQ is for first-time (or “First Draw”) PPP borrowers. If you are looking to take out a second PPP loan, please visit our Second Draw PPP FAQs.

For Non-WSB Customers

If you are currently not a customer of Watertown Savings Bank, we welcome your full banking relationship for businesses located in the Jefferson County area.  The following information is required to establish an account relationship:
  • A copy of your corporate documentation (DBA Certificate, Operating Arrangements, Corporate Resolutions, etc.).
  • You will be required to open a commercial deposit account with Watertown Savings Bank.
  • Government Issued Photo ID for all owners with 20% or more interest in the business.
Once you have completed the required documentation and application, please call (315) 788-7100 to make an appointment to drop off your packet.


First Draw FAQs

Here are some helpful answers to the most common questions we receive on this program.
How can I apply for a First Draw PPP Loan?

You can apply online now with our easy-to-use application.

What are general eligibility requirements?

Here are the general eligibility requirements:

  • You have not previously received a PPP loan.
  • You must have 500 or fewer employees
  • A wide variety of businesses are eligible for the program. Both for-profit and certain non-profit small businesses are eligible. In addition, sole proprietorships, independent contractors, tribal businesses, and small agricultural co-ops can obtain PPP loans

Please note that you are not required to demonstrate a reduction in revenue to apply for your first PPP loan.

How can I use my PPP loan?

You can use your PPP loan to pay a variety of business expenses during the COVID-19 crisis. These expenses include:

  • Salaries, wages, payroll, independent contractors (1099), benefits, etc.
  • Rent & utilities
  • Interest on mortgages and other loans
  • Refinance of an SBA Economic Injury Disaster Loan (EIDL) made between January 1, 2020 and April 3, 2020
  • Payment for any software, cloud computing, and other human resources and accounting needs
  • Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance
  • Payments to a supplier pursuant to a contract, purchase order, or order for goods that were in effect prior to receiving the PPP loan that are essential to your operations when the payments were made. Supplier costs for perishable goods can be made before or during the life of the loan
  • Personal protective equipment and costs that you incurred to help your business comply with Federal, State, or local requirements beginning on March 1, 2020

If my business is temporarily closed due to government restrictions can I still apply for a First Draw PPP Loan?

Yes, you can apply. Your business must be only temporarily closed– so long as your business is temporarily and not permanently closed.

If I am a restaurant, do I qualify to borrow 3.5x of my average monthly payroll?

No, restaurants may only borrow up to 2.5x of your average monthly payroll.

Am I required to demonstrate a 25% decline in revenue to qualify?

No, the 25% decline in revenue is not a requirement for your first PPP loan.

How do I need to spend my PPP loan to have it forgiven?

Here are the general guidelines for spending your loan to have it forgiven:

  • Payroll costs: 60% of your total loan amount