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:
If you already received a PPP loan, you may apply for another PPP loan if:
In order to apply you will need the following information:
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:
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?
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.