Updated: August 4, 10:00 AM
 

The Paycheck Protection Program (PPP) closed in May, 2021.  NSB is no longer accepting PPP loan applications.  

PPP borrowers should apply for loan forgiveness once they have used all of the loan proceeds for which they are requesting forgiveness.  NSB strongly encourages its PPP borrowers who received their loans between April and August of 2020 to apply for forgiveness as soon as possible.  Per program guidelines, these borrowers will be required to begin making payments to NSB in the second half of 2021 for any unforgiven loan balance.

Please refer to the following FAQs for PPP details.


Frequently Asked Questions

NSB provides answers to some basic PPP questions below. The U.S. Treasury publishes detailed PPP rules and updates HERE.
 

HOW DO I APPLY FOR LOAN FORGIVENESS?

Borrowers may submit a loan forgiveness application any time on or before the maturity date of the loan provided they have used all of the loan proceeds for which they are requesting forgiveness.  A borrower’s covered period (the time during which they may utilize PPP funds) begins when the lender disburses funds and ends 8 to 24 weeks later.  Borrowers who do not apply for forgiveness within 10 months of the end of their covered period will then begin to make payments on their loan balance.

To apply for forgiveness, NSB borrowers may contact their commercial lender directly or email pppforgiveness@nsbvt.com to request a secure submission method.  Borrowers should NOT attach a forgiveness application or supporting documentation in their initial email request.  NSB strongly discourages non-secure email submissions.

NSB borrowers may also drop off forgiveness applications at any NSB branch location or mail to:

Northfield Savings Bank
ATTN: PPP Forgiveness
PO Box 7180
Barre, VT 05641

Borrowers of $150,000 or less should apply using the streamlined forgiveness application form, requiring minimal calculation and documentation.  Borrowers of over $150,000 may be able to apply using a simplified “EZ” forgiveness application form.  To determine if you can use the EZ form, refer to this brief questionnaire.


FORGIVENESS APPLICATION FORMS AND INSTRUCTIONS:

WHAT IS THE PAYCHECK PROTECTION PROGRAM?

The Paycheck Protection Program (PPP) is a small business loan relief program authorized by the CARES Act in 2020, funded and overseen by the U.S. Treasury Department (Treasury) and administered by the U.S. Small Business Administration (SBA).  PPP provides small businesses forgivable loan funding to cover payroll costs and other critical expenses incurred during the COVID-19 national emergency.  in 2021 PPP was expanded to allow “Second Draw” loan disbursements to eligible existing borrowers.

ARE PPP LOANS FORGIVABLE? WILL MY BUSINESS NEED TO PAY BACK THE LOAN PROCEEDS?

Any unforgiven portion of PPP proceeds is a loan with principal and interest that must be paid back.

PPP’s primary purpose is to provide support for small business payroll costs.  No more than 40% of the forgiven amount may be for non-payroll costs.

PPP loan amounts will be forgiven provided:

  • Loan proceeds are used to cover payroll costs and most mortgage interest, rent, and utility costs during the 8 to 24 week covered period after loan funds are disbursed; and
  • Employees are retained and their compensation levels are maintained.  Some exceptions are made for loan amounts under $150,000 and companies who attempt to rehire or replace laid-off employees but are unable to do so.

Loan proceeds used for non-approved purposes will not be forgiven.

WILL FORGIVENESS AMOUNTS BE REDUCED IF THE BORROWER IS UNABLE TO REHIRE OR REPLACE LAID-OFF EMPLOYEES?

No, borrowers with loans of less than $150,000 are exempt from reductions in the forgiveness amount based on reductions in full-time equivalent employees, salary, or wages. Borrowers of over $150,000 may not have their forgiveness amounts reduced if they can adequately document:

  • An inability to rehire former employees and an inability to hire similarly qualified employees; or
  • An inability to return to the same level of business activity due to compliance with federal COVID-19 requirements or guidance.
WHAT ARE THE TERMS FOR UNFORGIVEN PORTIONS OF PPP LOANS?

Any unforgiven portion of PPP proceeds is a loan with a fixed interest rate of 1% and full payment due in 5 years.  Loan payments are deferred until the date any forgiven amount is paid by the SBA to NSB, but interest will continue to accrue over this period.  There are no prepayment penalties or fees.

WILL THE SBA REVIEW INDIVIDUAL PPP LOANS?

Yes, the SBA will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application.

 

Important Updates for NSB's PPP Borrowers