On December 27th, the Economic Aid Act was signed into law, part of which expanded loan forgiveness under the Paycheck Protection Program (PPP). First and Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
First and Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other eligible expenses
- At least 60% of the loan proceeds are spent on payroll cost
To start the PPP Loan Forgiveness Process, you will need to enter the following information:
- Primary email address provided on your PPP loan application
- Borrower's Tax Identification Number (TIN)
- Authorized Representative Personal Social Security Number
Once your information is verified in our systems, you will be guided through the online application. To streamline the process, this online application is completed solely by the borrower. You will be required to upload supporting documents that detail how the loan proceeds were utilized. If you have specific questions regarding these documents, please contact your accountant or tax professional.
Loan Forgiveness Timeline
Westfield Bank has 60 days from receipt of a completed forgiveness application to issue a decision to the U.S. Small Business Administration (SBA). If we determine that you are entitled to forgiveness of some or all of the amount you applied for under the statute and applicable regulations, we will request payment from the SBA at the same time we issue our decision. The SBA will, subject to their own review of the loan or loan application, remit the appropriate forgiveness amount to Westfield Bank, plus any interest accrued through the date of payment, not later than 90 days after we issue our decision to the SBA.
Reminder: You must complete a loan forgiveness application to avoid being subject to paying principal and interest payments per the terms of your note. In addition, borrowers must adhere to the timelines set by the SBA for both the covered period and the forgiveness application deadline.
For more information, please review important documents at the links below including the following:
- Frequently Asked Questions
- Interim Final Rule on Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act (1/19/2021
Unfortunately, during difficult times, there are individuals that try to take advantage of others during moments of weakness. The Coronavirus Pandemic is no different from many of these events. There have been increased reports of fraudulent emails and telephone calls, as well as fraudsters purporting to be agents of the SBA conducting site visits related to the PPP and other loan programs. The SBA is NOT conducting site visits and would NEVER request copies of sensitive documents in person. Please contact local authorities should you be visited by these individuals
Please contact your Commercial Loan Officer for more information regarding the forgiveness process. As always, thank you for choosing Westfield Bank.