Notice: The Paycheck Protection Program has closed.
The Paycheck Protection Program is no longer accepting applications as of August 8, 2020.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses and sole proprietors to help pay their employees during the COVID-19 crisis.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 24 week period after the loan is made; and
- Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Not more than 40% of the forgiven amount may be for non-payroll costs.
Loan Forgiveness:
How much of my loan will be forgiven? You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 24 weeks after getting the loan. Not more than 40% of the forgiven amount may be for non-payroll costs.
How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days of a completed application for forgiveness. The SBA then has 90 days to review the application and remit the appropriate forgiveness amount to the lender. The lender will then notify the borrower of the final forgiveness amount of the loan. If only a portion of the loan is forgiven, or if the forgiveness request is denied, any remaining amount due on the loan must be repaid by the borrower on or before the two-year or five-year maturity of the loan, whichever is applicable.
Additional Information for Borrowers:
What other documents will I need to include in my application? You will need to provide your lender with payroll documentation and, if seeking forgiveness for expenses such as rent, mortgage interest or utilities, the borrower must submit evidence of those payments.
When do I need to start paying interest on my loan? All payments may be deferred up to 10 months after the covered period (24 weeks) as outlined in the SBA Guidelines; however, interest will continue to accrue over this period.
When is my loan due? Loans issued prior to June 5, 2020, have a maturity of 2 years. Loans issued after June 5, 2020, have a maturity of 5 years.
Can I pay my loan earlier than the maturity date? Yes. There are no prepayment penalties or fees.
The SBA’s Frequently Asked Questions document can be accessed at the following website: https://www.sba.gov/document/support-frequently-asked-questions-ppp-loan-forgiveness
The SBA’s Frequently Asked Questions document can be accessed at the following website: https://www.sba.gov/document/support-frequently-asked-questions-ppp-loan-forgiveness
Applying for PPP Loan Forgiveness with The Bank of Princeton:
In order to apply for forgiveness of your PPP loan, please send an email request to PPPForgiveness@thebankofprinceton.com and include the information requested below. Once the information is received, a bank representative will email you with the forgiveness link specific to your previously approved PPP loan.
- PPP Applicant (Borrower) Name:
- PPP Loan Number (Starts with 31…):
- PPP Applicant Email Address:
- PPP Applicant Contact Name:
- PPP Contact Telephone Number:
***The bank had received a number of inquiries regarding the recent application length proposal aiming to ease the process to obtain loan forgiveness for PPP loans of less than $150,000. The bank is aware of the Senate Committee proposal S.4117 - Paycheck Protection Small Business Forgiveness Act, which would allow for a 1-page SBA PPP Forgiveness Application for eligible borrowers. The proposal has not been approved at this time and it is not known if it will be approved, however, customers are welcome to apply for forgiveness using the currently approved eligible forgiveness applications (3508 or 3508EZ for eligible borrowers).***