If you obtained a Small Business Administration (SBA) Paycheck Protection Program (PPP) loan through Thomaston Savings Bank, this page contains important information about the loan forgiveness application phase. We appreciate the trust you placed in us when applying for a PPP loan and we remain committed to working with you to ensure you receive your maximum eligible forgiveness amount.
This is where you will apply for forgiveness, resume working on a saved application, upload supporting documentation, receive requests for information, and communicate securely with us throughout the application process. We encourage you to review the information below before beginning your forgiveness application.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed to provide emergency relief for small- to medium-sized businesses disrupted by COVID-19. The Act created the Paycheck Protection Program, which serves as an extension of the Small Business Administration (SBA) 7(a) loan program, which enabled financial institutions to provide federally-backed, forgivable loans to eligible businesses.
The Paycheck Protection Program is administered by the SBA. The intent of the program was to provide loans on favorable terms to small businesses impacted by the challenging economic environment caused by the COVID-19 pandemic.
The largest advantage of the PPP is the ability to have your loan forgiven so you are not obligated to make interest or principal payments. This will require following the SBA's program rules and maintaining good records proving that you have followed those rules.
To have your loan forgiven either in whole or in part, you must meet the following criteria:
At least 60% of your PPP loan funds must be used for payroll costs.
No more than 40% of your PPP funds can be used for non-payroll purposes
Remember! The following payroll costs are not eligible for loan forgiveness but you should be keeping track of these:
To receive your highest loan forgiveness, you must restore the number of employees (full-time equivalents) on your payroll by December 31, 2020 with the following exceptions:
If you are self-employed:
Be aware that if you pay any single employee (including yourself) more than $3,846.15 per 2-week pay period (an annualized $100,000 per year) that amount will not count towards the loan forgiveness.
If you received a grant up to $10,000 from the Economic Injury Disaster Loan (EIDL) program, these proceeds will be deducted from your PPP forgiveness amount. For example, if you have a $10,000 EIDL grant and a $100,000 PPP loan in which you qualify for 100% forgiveness, then your forgiveness amount will be $90,000 and you will then be required to pay off the $10,000 remaining over the term of the loan.
When you submit a fully completed forgiveness application to us, we have up to 60 days to review it before submitting it to the SBA for approval. Once submitted to the SBA, the SBA has up to 90 days to review and process your application. In total, it could take up to 150 days for us to receive the forgiveness funds from the SBA to apply to your loan. We will keep you aware of the progress of your application throughout this process.
Compile the following documentation, which will need to be submitted to us before your forgiveness application is submitted to the SBA for approval.
Documentation verifying the eligible cash compensation and non-cash benefit payments from the Alternative Payroll Covered Period consisting of each of the following:
Documentation verifying your number of FTEs on payroll:
Documentation verifying existence of the obligations/services prior to Feburary 15, 2020 and eligible payments from the Covered Period:
We will ask you upload these documents electronically. If these documents are not already in digital form, take the time to scan them and get them ready for upload using an Adobe PDF file format.
SBA guidelines indicate that PPP loan borrowers should keep the following documentation for six years after the loan is forgiven or repaid in the event the Office of the Inspector General, SBA, IRS, Thomaston Savings Bank, or other entity needs to review:
On June 16, 2020, the SBA issued a simplified PPP Loan Forgiveness Application called the 3508EZ Form. This “EZ Form” is designed to reduce the required calculations for those that qualify. To qualify, borrowers must:
If you do not qualify under one of the three criteria, you must use the standard 3508 form.
Thomaston Savings Bank borrowers will complete their forgiveness application through a step-by-step process in our digital portal. Our digital portal will determine which form, the 3508 or the 3508EZ, is applicable based on the reponses you submit. The official SBA application forms and instructions are provided below if you want to review them in advance to prepare.
Borrowers that worked with an Agent to assist with their application for a PPP loan must complete the SBA Fee Disclosure and Compensation Agreement form 159.