At Newtown Savings Bank, we're committed to supporting local businesses in Connecticut.
Important PPP Loan Application Update:
The PPP Extension Act has been signed by President Biden. This extends the filing deadline for PPP loan applications to May 31, 2021.
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.