At Newtown Savings Bank, we're committed to supporting local businesses in Connecticut. We look forward to supporting you through the next round of the Paycheck Protection Program (PPP).
 
Important PPP Forgiveness Update:
Beginning February 24th, new Paycheck Protection Program (PPP) loan forgiveness applications will be temporarily unavailable while the system is being updated.
 
If you have started a PPP Loan Forgiveness Application:
Due to the pending changes required by the Economic Aid Act, PPP Loan Forgiveness applications will require an update by the applicant.  Previous application inputs will not be lost in the transition to the new application form. The application will be available for required updates beginning March 1st. Please log back in and complete any unanswered application questions and resubmit. You can access your application using the online portal with the same login credentials you used to initiate the application.

If you have not started a PPP Loan Forgiveness Application:
The new application form will be available on our online portal beginning March 5th.  

Important PPP Loan Application Update:

To ensure businesses with fewer than 20 employees have an opportunity to apply for a PPP loan, the Biden administration announced that the SBA will accept applications from those select businesses from February 24th through March 9th.  Newtown Savings Bank, as well as all PPP lenders, will only be able to submit to the SBA loan applications for borrowers with fewer than 20 employees. Borrowers with 20 or more employees do not qualify during this timeframe.

If you submit an application during this period and you have 20 or more employees, we will not submit your application to the SBA as it will be rejected due to this new mandate. If this two week exclusion applies to you, we welcome you to submit your loan application, but remember we will not be able to submit your request to the SBA until the two-week period ends.


We are accepting PPP loan applications for first and second draw loans for businesses in Connecticut.  
 
Who is eligible to apply for the next round of PPP loans?
PPP loans will be available to first-time qualified Borrowers and to businesses that previously received a PPP loan.
 
First-time Borrower Requirements:
  • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
  • Sole proprietors, independent contractors, and eligible self-employed individuals
  • Not-for-profits, including churches and 501(c)(6) membership organizations
  • Accommodation and food service operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 300 employees per physical location
If you already received a PPP loan, you may apply for another PPP loan if:
  • Current economic uncertainty makes the PPP loan necessary to support ongoing operations
  • The loan you request is $2 million or less
  • The business has 300 or fewer employees
  • The business used or will use the full amount of their first PPP loan
  • The business can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019
  • Organizations that are 501(c)(6) such as chambers of commerce are also eligible, provided they do not have more than 300 employees and do not receive more than 15% of their funds from lobbying.
In order to apply you will need the following information:
  • 2019 business tax returns complete with all schedules
  • 2019 and 2020 state payroll tax forms for all four quarters (Form 941)
  • Verification of the number of employees and payroll incurred in 2019 and 2020; payroll reports must be by employee and must identify employees with payroll compensation in excess of $100,000 annually
  • Forms 1099-Misc for self-employed individuals in 2019 and 2020
  • Please note only for Second-Draw PPP Loans: 2019 and 2020 financial statements by quarter and/or quarterly sales reports reflecting your quarterly top line revenue used to demonstrate a 25% reduction in revenue
  • For second-draw loans— a borrower’s first-draw PPP loan SBA number must be included on the second-draw application (a sequence of eight numbers, followed by a dash, followed by two numbers).
Here is a detailed list of information you will need when applying. For further updates and details, please visit the SBA and Treasury websites.
Has the taxability of the PPP loan changed?
Yes, the COVID-19 Relief law specifies that expenses covered by the PPP loan will be tax deductible.

What are the requirements for potential Forgiveness of this next round of PPP funds?
To be eligible for full loan Forgiveness, PPP Borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either 8 or 24 weeks. Other uses of the funds that will be potentially forgivable include:
  • Rent, covered mortgage interest, and utilities
  • Covered worker protection and facility modification expenditures, including personal protective equipment to comply with COVID-19 federal health and safety guidelines
  • Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations
  • Covered operating costs such as software and cloud computing services and accounting needs
How do I calculate my requested loan amount?
You can receive a loan amount of up to 2.5 times your average monthly payroll costs in the year prior to the loan or the calendar year, the same as the previous PPP round, but the maximum loan amount allowed for this round is now $2 million. PPP Borrowers with NAICS codes starting with 72 (accommodation and food service) can receive up to 3.5 times their average monthly payroll costs up to $2 million. Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020.

Has PPP Forgiveness been impacted?
The new law creates a simplified Forgiveness application process for both existing PPP loans as well as Second Draw loans of $150,000 or less. This means a borrower will receive Forgiveness if they sign and submit a one-page certification, and no other documentation is required. However, please note that this new simplified Forgiveness application must be developed by the SBA and may not be available until February 2021.  Borrowers are required to retain relevant records related to employment for four years and other records for three years, as the SBA may review and audit these loans.

Ready to Apply?
If your business is located in Connecticut and you would like to apply for PPP loan , please contact us at PPPQuestions@nsbonline.com
Loan Forgiveness
Newtown Savings Bank customers with questions about their PPP loan forgiveness application may contact us at PPPQuestions@nsbonline.com

Newtown Savings Bank remains committed to the small businesses in our community and we are ready to help you through this new round of PPP loans.

Please consult with your legal, tax, and/or accounting advisors for advice on your specific situation.