Paycheck Protection Program Loan Forgiveness Application Update
While we await further guidance from the Small Business Administration (SBA) on “Loan Forgiveness,” we are preparing our online Loan Forgiveness Application. All applications will be processed through this system to enable tracking and ensure a streamlined and more efficient loan forgiveness request process. We will not be accepting paper applications. A link will be placed on our website when the system is available, and clients who have already applied and received funding from the Small Business Administration through Fairfield County Bank will be notified when the online application is available. We will continue to be available for assistance and look forward to supporting you through the online application process for the forgiveness request.
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program (PPP) was created for small businesses and nonprofits to help pay their employees during the COVID-19 crisis.
We appreciate our clients for choosing Fairfield County Bank to process and service their Paycheck Protection Program (PPP) loans. We are proud to be able to assist you and our community during this difficult time. It is important to note that obtaining the loan is just the first step. While there remain many outstanding questions when it comes to the loan forgiveness process, one thing remains clear, sound record keeping in the use of funds should be utilized.
Although we are waiting for the Government's issuance of regulations on "Loan Forgiveness," we suggest sound recordkeeping to include,
- a clear trail of the use of such funds for both payroll-related expenses and other "qualifying" expenditures
- the detailed Payroll records should include the number of full-time equivalent employees and their related compensation levels for the 8-week or 24-week period following receipt of the PPP funds
You have 10 months from the end of the covered period *or* until December 31, 2020 to apply for forgiveness, whichever occurs first. Repayment of any portion not forgiven by the SBA will commence upon remittance of forgiven portion to us by the SBA. The outstanding balance will be repaid over the remaining loan term. PPP Loans approved before 06.05.2020 have a maturity of 2 years from inception and Loans approved on or after 06.05.2020, have a maturity of 5 years. All PPP loans have an interest rate of 1%.Please visit the SBA website (https://www.sba.gov/funding-programs/loans/coronavirus-relief-options) for the latest information and contact your accountant for further guidance on the regulations.