Business Banking Assistance
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PPP Loan Forgiveness Information
Updated January 22, 2021 – The Small Business Administration (SBA), which administers the Paycheck Protection Program (PPP), has released revised PPP loan forgiveness forms. The revised forms include Form 3508S, which provides a streamlined forgiveness application for all PPP loans of $150,000 or less. This represents a material change, as the original 3508S form was designated for loans of $50,000 or less. Norway Savings is building an automated 3508S form so our customers can apply completely online. We expect the electronic version to be available during the next few weeks.
Norway Savings Bank is currently accepting PPP loan forgiveness applications for loans of all sizes using Forms 3508, 3508EZ and 3508S. Our automated digital application program will provide you with the applicable form as you go through the process.
It’s important to remember that, because PPP borrowers have 10 months after the 8-week or 24-week Covered Periods to apply for forgiveness AND the forgiveness funds are reserved (meaning they will not run out), there is no hurry to apply. However, if you want to begin the application process, please read the following information carefully. Instructions for applying are near the bottom of this page.
If, after reviewing the information below, you still have questions about loan forgiveness, please contact your financial advisor, accountant, business coach or attorney.
PPP Loans may be forgiven when you use your funds in permitted ways.
For your loan to be forgiven, there are restrictions on how you can use the funds.
- At least 60% of the loan proceeds must be used for payroll costs (up to certain thresholds per employee) calculated on a gross basis without regard to federal taxes imposed or withheld, such as the employee’s and employer’s share of FICA and income taxes required to be withheld from employees, health care coverage expenses, retirement contributions and state and local taxes imposed on employee payroll paid by you, the employer.
- Up to 40% can be used for rent, mortgage interest expense and utility payments.
The amount of loan forgiveness may be up to the full principal amount of the loan plus accrued interest.
The maximum amount of loan forgiveness is based on your eligible payments over the 8-week or 24-week Covered Period following the date of the Note. Borrowers whose loans closed before June 5 can choose whether they prefer to use the 8-week or 24-week Covered Period.
The maturity of PPP loans has been increased to five years for those loans that are approved by the SBA on or after June 5, 2020. Borrowers who closed on their loans before June 5 have the ability to request that the loan maturity date be extended from two years to five years.
What form will I use and what do I need to document?
Depending on the complexity of your loan, you will apply using the 3508, 3508EZ or 3508S application form. The 3508S is specifically designated for loans of $150,000 or less. Our automated digital application program will provide you with the applicable form as you go through the process. The amount and type of documentation you need will be determined by which form you use.
Are you ready to apply?
If you are ready to apply using the 3508 or 3508EZ form, we recommend that you review our Borrower Assistance Checklist and Instructions.
If you have a loan of $150,000 or less, you should use the revised 3508S form, which will be available in electronic format in the next few weeks. We recommend that these customers wait for the electronic version, which we will announce on this web page and via a customer email.
To begin the application process, please send an email to PPP@norwaysavingsbank.com with your business name, email address and phone number. Please also include “Loan Forgiveness” in the subject line. You’ll receive a personalized, secure email containing a link to the automated, online forgiveness application within two business days. Please note, when accessing the link, we recommend using Google Chrome for the best technical experience.
Please note that once a loan forgiveness application package is received, the bank has up to 60 days to determine the amount of forgiveness and submit the decision to the SBA. Once received from the bank, the SBA has up to 90 days to reimburse the bank with the approved funds to apply to your PPP loan.
Each loan is different, so you may need additional documentation based on your specific situation. Please note: If you do come across an application for Loan Forgiveness on one of the pages below, do not fill it out for submission to Norway Savings. We only accept applications via the personalized link we send to you. See “Are you ready to apply?” above.
- U.S. Department of the Treasury:
- Small Business Administration (SBA):
- Maine Small Business Development Center (SBDC) YouTube Video Series
Other Relief Programs
The U.S. Small Business Administration (SBA) is offering a variety of relief programs for small businesses impacted by the COVID-19 crisis.
The Finance Authority of Maine (FAME) has loan programs available to eligible Maine businesses and individuals/employees who are experiencing hardships due to COVID-19.