Paycheck Protection Program (PPP)
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Chelsea Groton Bank worked with the Small Business Administration (SBA) to provide relief funding through the Paycheck Protection Program (PPP) to over 500 area businesses. The PPP program was designed to provide a direct incentive for small businesses to keep their workers on the payroll – the program ended June 30, 2020.
How and when do I apply for Forgiveness?
Chelsea Groton Bank is in the process of establishing procedures and instructions for accepting forgiveness applications. We will email you a formal instruction package which will include an electronic means of providing us your completed application. We will be encouraging all borrowers to submit their application and supporting documentation through a secure link on our website. Once we have our secure website open to accept Applications, we will send another email to start the process. Please do not submit any information at this time. Additional instructions will be sent early July.
Here are action steps we recommend and a list of documents you should start collecting:
- Become familiar with the two PPP Forgiveness Applications and Instructions now - a new “EZ’ form was introduced for select borrowers.
- Document how all loan proceeds were spent:
- List and provide supporting evidence of all employees on payroll for the 8 or 24 weeks following the loan disbursement with the dollar amount of payroll costs (defined below).
- Evidence of mortgage interest payments, rent payments and utilities paid during the 8 or 24 weeks following the loan; include copies of canceled checks and/or bank statements with ACH info and copies of utility and mortgage statements/lease agreement
- Evidence of payroll costs, utilities, rent/lease payments, and mortgage interest paid before February 15, 2020, to compare to what is paid or incurred during the 8 or 24 weeks following the loan closing to ensure it aligns. If self-employed, these expenses are allowed to the extent they are deductible on Form 1040 Schedule C.
- Copy of EIDL loan if refinanced with PPP loan (be sure to identify how much was an advance that does not have to be repaid)
- If you used PPP to refinance an EIDL loan, only the funds used for payroll costs will be forgiven, so be prepared to provide the documentation listed above for the EIDL loan, too.
As a reminder:
The Connecticut Small Business Development Center (CTSBDC) offers no-cost advisory assistance for small businesses that may not have a formal payroll system, a team of accountants, or even advisors familiar with the PPP loan forgiveness process. CTSBDC advisors will provide guidance to date from the Small Business Administration on forgiveness, tips to maximize forgiveness, and other available resources.
CTSBDC COVID-19 Request for advising