COVID-19 Lending Assistance

Paycheck Protection Program (PPP) Forgiveness Process

On June 5, 2020, the President of the United States signed into law the Paycheck Protection Program Flexibility Act of 2020 (PPPFA).  This act revises the existing rules related to Paycheck Protection Program (PPP) loan forgiveness.  Highlights of the act as it relates to loan forgiveness include:

• Requiring 60% of the covered loan amount be used for eligible payroll costs (previously 75%).
• Extending, at the borrower’s option, the covered period to use the funds from eight weeks to 24 weeks.
• Extending the deadline to rehire workers from June 30, 2020 to December 31, 2020, and providing additional exemptions to loan forgiveness reduction.
• Extending the deferral period that a borrower has to pay principal, interest and fees.

We recommend borrowers monitor these events and consult with their tax advisor, attorney, or business advisor, as appropriate in determining the appropriate time to submit an application for PPP loan forgiveness.

The Small Business Administration (SBA) has issued detailed rules and guidance related to PPP loan forgiveness.  The information below is provided as a service to Northfield Bank PPP borrowers and is qualified in its entirety by reference to the appropriate authoritative rules and guidance regarding the PPP and loan forgiveness issued by the SBA, and should not be relied on as authoritative.  PPP loan forgiveness guidance is subject to change by the SBA at any time.  Please visit www.sba.gov for the latest information pertaining to loan forgiveness. 

Costs Eligible for Forgiveness
Costs listed below are eligible for loan forgiveness.  Please visit sba.gov for full details. 

Eligible Payroll Costs Incurred During the Covered Period:

• Cash compensation to employees, including owner compensation (with annual salaries of up to $100,000)
• Employer-paid portion of health insurance contributions
• Employer-paid portion of retirement contributions
• Payment of state and local taxes assessed on compensation of employees
  
  

Eligible Non-Payroll Costs

• Mortgage interest on real or personal property, in force before February 15, 2020, that was incurred during the covered period beginning on the PPP Loan Disbursement Date. Loan prepayments or payments on principal are not included in the loan forgiveness calculation. 
• Rent or lease payments, pursuant to lease agreements in force before February 15, 2020, that was incurred during the covered period beginning on the PPP Loan Disbursement Date.
• Utility, telephone, internet, fuel for vehicles or equipment lease payments, for service that began before February 15, 2020, that were incurred during the covered period beginning on the PPP Loan Disbursement Date.

SBA Documentation Requirements
Borrowers can take steps now to gather documentation to make it easier to apply for forgiveness in the future.  Refer to pages 10 and 11 of the SBA Forgiveness Application and Instructions for a list of the documents you will be asked to supply.  Such documents may include your payroll software summary, cancelled checks, bank statements, lease and rental agreements, mortgage documents, utility bills, state tax documents, and Federal Form 940/941.

When Can You Apply for Forgiveness
Northfield Bank is currently awaiting guidance on when the SBA will accept Forgiveness applications.  When the SBA is able to begin accepting applications, borrowers may apply for forgiveness as early as eight weeks from the date the loan funds were dispersed.  Banks must submit the borrower’s application, along with supporting documents to the SBA within 60 days of receiving the borrower’s completed PPP Forgiveness Application.

Note:  Borrowers must apply for forgiveness with the financial institution that funded their PPP loan

How to Apply for Forgiveness
Once Northfield opens the forgiveness application process after the SBA begins accepting applications, an application link will be sent to all Northfield Bank PPP borrowers who received their PPP loan prior to June 5, 2020 and have reached the 8 week mark from disbursement. PPP borrowers, approved by the SBA prior to June 5, 2020, have the option of applying for loan forgiveness using the original 8 week option of loan spending, or the expanded 24 week option of spending.  

All other PPP borrowers who received their loan after June 5, 2020 will receive an application link by email on or about the 24 week mark from their loan disbursement.  

Our PPP Forgiveness Team is available to assist with any questions.  Please contact us at ppp.program@eNorthfield.com or (833) 301-NFBK ext. 4151.

Consumer Loan Relief

If you are experiencing hardship due to coronavirus (COVID-19) and unable to make your payment on your Home Equity Loan or Line of Credit, we may have options available to assist you.  

To be considered for a temporary payment deferral if you are experiencing a financial hardship and unable to make payments as a result of coronavirus (COVID-19), please download the Home Equity/Residential Borrower Relief Request and call (833) 301-NFBK extension 2642 for instructions on how to securely send the form to us. 

Please do not email the Request Form until you contact us and we provide the steps to securely transmit the form in order to protect your personal information. 

*Note: Not all requests will qualify.

Additional Resources

Below is a list of federal and local resources to help your business navigate the programs and aid that are available.

• US Chamber of Commerce:  Emergency Loan Guide & Checklist
• State of New Jersey: COVID-19 Information for Small Business
• New York State Business Council: Managing the Coronavirus