Customer Information on how to Apply for SBA PPP Forgiveness
Savings Bank of Danbury is proud to have assisted hundreds of companies and to have helped preserve thousands of jobs through our participation in the SBA PPP Program. Small Business Customers who have been funded for a Savings Bank of Danbury PPP loan should begin gathering the required documentation and information in order to complete the SBA’s PPP Loan Forgiveness Application.
There have been recently approved changes to the forgiveness rules of the program. These changes require further guidance from the SBA and there may possibly be updates to the Loan Forgiveness Application. As such, Savings Bank of Danbury is not yet accepting applications for PPP Forgiveness.
When final guidance on the new forgiveness rules is issued by the SBA and we are able to accept Loan Forgiveness Applications, you will receive an email from a Savings Bank of Danbury representative with further information.
It is important to note that loan forgiveness is not automatically granted by the SBA. The request for loan forgiveness must be made through Savings Bank of Danbury.
Key information/criteria to qualify for loan forgiveness include:
- PPP loan proceeds must be used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 24-week period after the initial disbursement of funds.
- Employee and compensation levels are maintained.
- Not more than 40% of the forgiven amount may be for non-payroll costs.
- The full PPP loan amount may be forgiven as long as the proceeds are used to cover the approved expenses. You will be responsible for repaying any amounts not forgiven by the SBA.
- PPP loan payments will be deferred for 6 months; however, interest will continue to accrue over this period.
- To request loan forgiveness, the SBA is requiring that you complete their Loan Forgiveness Application and provide and verify specific supporting documentation to Savings Bank of Danbury. Required documentation is detailed within the Loan Forgiveness Application.
How should I request loan forgiveness for my PPP loan?
- When we are able to accept Forgiveness Applications and when your loan enters the eligible forgiveness period (minimum 8-week mark from the initial disbursement of funds), you will receive an email from a Savings Bank of Danbury representative with a link to our online PPP Forgiveness Application. This secure link will allow you to complete the PPP Loan Forgiveness Application and upload all required documents. We are not able to accept PPP Forgiveness Applications outside of the platform within the secure link.
- The Application will require that you certify and provide the required documentation indicating that you used the loan funds for the allowable expenses.
- Forgiveness Applications will be reviewed by Savings Bank of Danbury; the Bank will forward the applications to the SBA, who will decide on the loan forgiveness amount.
- Savings Bank of Danbury will let you know as soon as the SBA decides on your forgiveness amount.
Below are resources and guidelines on how to request forgiveness for your PPP loan:
- SBA’s PPP Borrower Information Fact Sheet
- PPP Loan Forgiveness Application – includes information on how to request loan forgiveness
If you have any questions, please email SBDLoanAssistance@sbdanbury.com or call 203-830-4391. Thank you.