Important Service Disruption:
Last Updated: 09/20/2021 8:00 a.m.
NBT's Forgiveness Portal for loans obtained in 2021 is open!
The updated application link is available in your Business Online Banking.
For the convenience of our customers, we have automated the application process, meaning you will not have to submit a paper application and we will not be using the SBA Direct Forgiveness Portal.
We understand you have questions and we are here for you.
When it comes to protecting your business from fraud and cybercrime, it pays to know the latest threats. That’s why NBT Bank is committed to providing you with information and alerts. Review the link above to learn more about recent scams and tactics being used by cyber criminals against PPP customers.
Borrowers can only apply for forgiveness once per loan. In order for the full loan amount to be eligible for forgiveness, PPP funds must be spent prior to applying. Depending on payroll and qualified expense needs, the covered period can be 8-24 weeks, after which you have 10 months to file for forgiveness.
The new Form 3508S is the simplest forgiveness application form.
The S Version applies to borrowers that :
The EZ Version applies to borrowers that:
This form applies to borrowers that are not eligible to submit the S or EZ application.
You, the borrower, may not be responsible for full or partial repayment of the loan if you use the PPP loan proceeds for forgivable expenses. NBT Bank will follow SBA guidance to determine the amount that is forgivable and will require an application with supporting documentation. You will be required to apply for your loan forgiveness through NBT Bank. We will provide more information about the application process soon.
PPP Loan Forgiveness =
+ Money Spend on Covered Period Eligible Expenses
- Non-Payroll Cost Reduction
- FTE Reduction
- Salary/Hourly Wage Reduction
Cash Compensation Payroll Costs
Non-Cash Compensation Payroll Costs
Compensation for Owners, Partners and Self-Employed
Rent/Leases for Real or Personal Property
Debt Interest Payments
Property Damage Costs
Costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation.
Covered Supplier Costs
Supply of goods that are essential to the operations of the Borrower at the time which the expenditure is made, and made pursuant to a contract, order, or PO in effect prior to the beginning of the Covered Period (for perishable goods only, may have been in effect at any time during the Covered Period as well).
Worker Protection Expenditures
Operating or capital expenditures that facilitate the adaptation of the business activities to comply with the requirements established or guidance issued by the Department of Health or any equivalent guidance issued by a health administration, State, or local government in respect to COVID-19. Does not include residential real property or intangible property.
In addition to using your loan proceeds for eligible expenses, follow the guidance below to maximize your potential loan forgiveness:
Salary/Hourly Wage Reduction:
Full-Time Equivalent (FTE) Reduction Quotient:
Payroll Cost Reduction – 60% Rule
To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to non-payroll costs. For example, if a borrower uses 59 percent of its PPP loan for payroll costs, it will not receive the full amount of loan forgiveness it might otherwise be eligible to receive. Instead, the borrower will receive partial loan forgiveness, based on the requirement that 60 percent of the forgiveness amount must be attributable to payroll costs. For example, if a borrower receives a $100,000 PPP loan, and during the covered period the borrower spends $54,000 (or 54 percent) of its loan on payroll costs, then because the borrower used less than 60 percent of its loan on payroll costs, the maximum amount of loan forgiveness the borrower may receive is $90,000 (with $54,000 in payroll costs constituting 60 percent of the forgiveness amount and $36,000 in non-payroll costs constituting 40 percent of the forgiveness amount)
Economic Injury Disaster Loan (EIDL) Advance:
Loan forgiveness will not have an adverse effect for your Federal taxes. The new Economic Aids Act passed on December 27, 2020 overruled the IRS expense deductibility limitation.
Keep track of and document both payroll costs and other eligible expenses, in the 8 or up to 24 weeks following the loan disbursement. It will help with the forgiveness application process as you will need to provide documentation for all costs used in the forgiveness calculation. You should review any automatic payments such as ACH and automatic debits for the account holding these loan proceeds to ensure PPP funds are being used and tracked for eligible purposes. Following are some examples: