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Last Updated: 07/31/2020 8:00 a.m.
If you received a PPP loan from NBT, we will send you a direct communication that explains how and when you may initiate a loan forgiveness request. Please do not submit a request for forgiveness at this time. For the convenience of our customers, we will be automating the application process, meaning you will not have to submit a paper application.
Additionally, there is legislation pending that may significantly streamline the forgiveness process for many of our customers. Once this is finalized, we will share more details about our automated forgiveness process.
We understand you have questions and we are here for you.
The SBA has released additional guidance and borrowers may submit a loan forgiveness application any time on or before the maturity date of their PPP loan – including before the end of the covered period. Which means that you can submit your loan forgiveness application as soon as our application portal is available for use. We are currently incorporating the revised and new forms into our digital application portal.
If you received a PPP loan from NBT, we will send you a direct communication that explains how and when you may initiate a loan forgiveness request. Please do not submit a request for forgiveness at this time.
The EZ Version applies to borrowers that:
Reminder, NBT PPP customers should hold on submitting their SBA applications until the NBT automated form is available.
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.
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
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:
Keep track of and document both payroll costs and other eligible expenses, in the 8 or up to 24 weeks following loan the 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:
Currently we are building the automated process to accept forgiveness applications. We will notify you when additional information is available regarding the forgiveness application process.
For customers who received PPP Loans through our partner, The Heartland, please visit www.nbtbank.com/heartland for further instructions on how to apply for the forgiveness portion of your PPP loan. Applications for PPP Forgiveness must be completed through the lender that provided PPP funding.