Paycheck Protection Program
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program (PPP) is an SBA loan that helps businesses keep their workforce employed during the COVID-19 pandemic.
- If you have previously submitted an application at BSNB and have questions regarding its status, please direct inquiries to Loan.Assistance@bsnb.com.
- Funding for new PPP loans has been depleted and BSNB can no longer accept applications.
- If you have received PPP funding, and are planning to request loan forgiveness in the future, please review the following Q&A.
Paycheck Protection Program – Loan Forgiveness
Note: Forgiveness of a Paycheck Protection Program loan is subject to all terms and criteria contained in the CARES Act as well as SBA interim final rule(s) and program guidance issued by the Small Business Administration and US Department of the Treasury. For guidance on your unique situation, please reference the US Department of the Treasury website for more detail and speak with your accountant and legal advisors.
When can I request loan forgiveness?
- BSNB will contact you via email and explain how and when you are eligible to apply for loan forgiveness.
- To qualify, loan proceeds should be used for eligible purposes within 24 weeks from loan disbursement or Dec. 31, 2020, whichever is earlier.
- Please review our checklist for important information and required documentation.
- Once you submit a complete application, including all supporting documentation, BSNB may take up to 60 days to review and process it. The SBA may take an additional 90 days to review and confirm the forgiveness amount. BSNB cannot hold your completed application for more than 60 days. Please do not submit an application for forgiveness unless you are prepared for it to be processed within the required timeframe.
How much of my PPP loan may be forgiven?
- The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest.
- Loan forgiveness may be reduced if there is a reduction in employee salaries and wages. Likewise, if you use loan proceeds for ineligible purposes or have received an Economic Injury Disaster Loan (EIDL) from the SBA, you may also be reducing the amount eligible for forgiveness.
- The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the covered period following the date of the loan.
- Keep in mind that at least 60% of the loan proceeds must be used for payroll costs.
What expenses will qualify for loan forgiveness?
Note: Different corporate structures may affect the eligibility of expenses that can be forgiven. Please refer to the Act for more information.
- Payroll costs (as defined in the Act and in 2.f.);
- Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums;
- Mortgage interest payments (but not mortgage prepayments or principal payments);
- Rent payments;
- Utility payments;
- Interest payments on any other debt obligations that were incurred before February 15, 2020; and/or
- Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan. If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan.