We know that as a business owner you’re paying close attention to the latest updates on the additional Paycheck Protection Program (PPP) loans for small businesses recently passed by Congress. Our team is here to work with you to find the right solution. Please review the below resources and contact us with any questions.
PPP Loan Application
During the initial round of the Paycheck Protection Program, we are proud that we helped secure PPP loans totaling more than $16,000,000 for our local businesses. As business owners continue to feel the effects of the continued disruption due to Covid-19, our team is working hard to assist in the second round of PPP applications.
Here is What We Know:
On December 27, 2020, the Consolidated Appropriations Act of 2021 was signed into law. The legislation includes an additional $284 billion in funding for forgivable loans through the Paycheck Protection Program (PPP) for both “first draw” and “second draw” borrowers. We are continuing to update this page as new information is announced, in the event there are any discrepancies between the information found on our site and the SBA’s website, please follow the official SBA directions.
Here is what you need to know about the program:
Based on the latest information from the SBA and the Treasury Department, here is some general information regarding the program, please note there may be other criteria a business needs to meet. We recommend consulting with your attorney, accountant or other trusted professional advisor(s) as you consider your application.
- First Time PPP Borrowers: In addition to other criteria, a business must have no more than 500 employees, additional criteria are:
- A business may qualify for a first loan up to 2.5 times its average monthly payroll costs, up to a maximum loan amount of $10 million.
- Types of eligible businesses of expanded
- Second Time PPP Loan Borrowers: Customers can apply for a second PPP loan if they have used or will use all funds from the first PPP loan. Additional eligibility criteria are:
- To apply a business must have fewer than 300 employees.
- The second loan can be up to 2.5 times the business’ average monthly payroll costs, up to a $2 million loan maximum.
- The business must demonstrate revenue declined by at least 25% in any quarter in 2020 compared to the same quarter in 2019.
Who Can Apply:
- Businesses that were in operation on February 15, 2020 are eligible for an initial or second draw PPP loan.
- Sole proprietors,independent contractors, and self-employed persons
- Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations)
- Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
- Faith-based organizations that have less than 150 employees
- Housing cooperatives that employ less than 300 people
Apply For PPP Loan
We invite all Connecticut businesses to apply for a first draw or second draw PPP Loan through our digital portal and submit the required supporting documents.
Please be advised, per the SBA PPP guidelines, Torrington Savings Bank, (“The Lender”), will rely on you, the Borrower’s certifications, to determine program eligibility and your documentation in determining loan amount and loan forgiveness eligibility. The Lender will be held harmless for borrowers’ failure to comply with program criteria.
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
Sign Up for PPP Loan Updates
Are you interested in receiving updates regarding the latest information on the PPP Loan Application process from Torrington Savings Bank?
PPP Loan Forgiveness
The new Covid Relief bill has made a number of changes to the initial PPP Program experience, and because of this we do not expect the program to fully open for new loan application until sometime after the New Year. Please continue to check for updates which will be made once program details emerge from the SBA.
Some of the bill’s changes focus on loans less than $150,000, so if you have already received a PPP loan, you may wish to wait to apply for forgiveness until those rules are published as they may benefit your forgiveness application.
For Borrowers who have loans over this threshold and/or are ready to apply, please continue to follow the guidance outlined below and access your forgiveness application by clicking on the “APPLY NOW” button.
Apply for PPP Loan Forgiveness:
Torrington Savings Bank’s PPP Loan Forgiveness online portal is available to submit your application. When you are ready to apply use our online application portal to submit your forgiveness details and upload all supporting documents. If you have any questions during the process, please feel free to reach out to one of our Commercial lenders via email at firstname.lastname@example.org.
What Documentation do I Need to Submit my Application for Forgiveness?
- Your Loan Number
- Tax ID Number
- Payroll Documentation for the Forgiveness Period
- Promissory Note
- Non-Payroll Documentation
After submitting a forgiveness application, Torrington Savings Bank has up to 60 days to review and make a recommendation to the SBA on the forgiveness amount. After Torrington Savings Bank submits its recommendation to the SBA, the SBA then has up to 90 days to review and notify Torrington Savings Bank. Submit your Loan Forgiveness Application by October 1, 2021.
For additional information from the SBA and others about the special lending programs being created as a response to COVID-19,
you may want to review materials provided by these trusted sources:
Beware of Scams: The Paycheck Protection Program (PPP) has provided welcome relief for small business owners that are struggling with the many challenges they have had to tackle during the coronavirus pandemic. However, criminals are taking full advantage during these troubling times running fraud campaigns against businesses. Be on the lookout for scams, such as:
- Fake Donation Sites
- Phishing Emails
- IRS Scams
Stay alert! For additional information visit the SBA’s website.