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As an SBA Preferred Lender, Solvay Bank is ready to help Central New York small businesses succeed.

Key Features

  • Competitive Rates
  • Lower Down Payments
  • Extended Terms

• A 100% SBA guaranteed loan directly from Solvay Bank that is possibly eligible to be forgiven and requires no other collateral or personal guarantee

We are no longer accepting PPP applications.

For More Information

PPP Loan Forgiveness Information

CARES Act Section 1106 – NOTE: These are directly from the act signed by Congress. The Interim Final Rule on Forgiveness may have changes or updates made by SBA/Treasury whenever it is released. Published March 26, 2020

  • FORGIVENESS - An eligible recipient shall be eligible for forgiveness of indebtedness on a PPP loan in an amount equal to the sum of the following costs incurred and payments made during the covered period:
    • Payroll costs. Must be 60% of costs.
    • Any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation).
    • Any payment on any covered rent obligation.
    • Any covered utility payment.
  • LIMITS ON AMOUNT OF FORGIVENESS
    • The amount of loan forgiveness shall not exceed the principal amount of the financing made available under the applicable covered loan.
  • REDUCTION BASED ON REDUCTION IN NUMBER OF EMPLOYEES
    • Amount of loan forgiveness shall be reduced based on the following formula:

(The average number of full-time equivalent employees per month employed by the eligible recipient during the8-week period beginning on the date of the loan origination)

Divided by

(the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on February 15, 2019 and ending on June 30, 2019; or during the period beginning on January 1, 2020 and ending on February 29, 2020)

Multiplied by 

The sum of eligible costs outlined above under FORGIVENESS.  

    • In the case of an eligible recipient that is seasonal employer, as determined by the Administrator, the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on February 15, 2019 and ending on June 30, 2019.
    • The average number of full-time equivalent employees shall be determined by calculating the average number of full-time equivalent employees for each pay period falling within a month
  • REDUCTION RELATING TO SALARY AND WAGES
    • The amount of loan forgiveness shall be reduced by the amount of any reduction in total salary or wages of any employee that is in excess of 25 percent of the total salary or wages of the employee during the most recent full quarter during which the employee was employed before the covered period (excluding employees with annual pay > $100,000)
  • TIPPED WORKERS
    • An eligible recipient with tipped employees may receive forgiveness for additional wages paid to those employees.
  • EXEMPTION FOR RE-HIRES
    • The amount of loan forgiveness will not be reduced IF a reduction of full-time equivalent employees or salaries or wages of full time equivalent employees that occurred from 2/15/2020 to 4/26/2020 are rehired or the reduction in salaries and wages is eliminated.
  • APPLICATION
    • An eligible recipient seeking loan forgiveness under this section shall submit to the lender that is servicing the covered loan an application, which shall include:   
      • (1) documentation verifying the number of full-time equivalent employees on payroll and pay rates for the periods described in subsection (d), including
        • (A) payroll tax filings reported to the Internal Revenue Service; and
        • (B) State income, payroll, and unemployment insurance filings;
      • (2) documentation, including cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage obligations, payments on covered lease obligations, and covered utility payments;
      • (3) a certification from a representative of the eligible recipient authorized to make such certifications that
        • (A) the documentation presented is true and correct; and
        • (B) the amount for which forgiveness is requested was used to retain employees, make interest payments on a covered mortgage obligation, make payments on a covered rent obligation, or make covered utility payments; and
      • (4) any other documentation the Administrator determines necessary.

 

Interim Final Rule – Published April 2, 2020

 

Can my PPP loan be forgiven in whole or in part?

 

Yes. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. That is, the borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgiveable purposes described below and employee and compensation levels are maintained. 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 eight-week period following the date of the loan. However, not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.

SBA will issue additional guidance on loan forgiveness.

 

Do independent contractors count as employees for purposes of PPP loan forgiveness?

 

No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan forgiveness.

 

Can lenders rely on borrower documentation for loan forgiveness?

 

Yes. The lender does not need to conduct any verification if the borrower submits documentation supporting its request for loan forgiveness and attests that it has accurately verified the payments for eligible costs. The Administrator will hold harmless any lender that relies on such borrower documents and attestation from a borrower.

 

Interim Final Rule Additional Eligibility Criteria and Requirements for Certain Pledges of Loans – Published April 14, 2020

 

What amounts shall be eligible for forgiveness? (Schedule C Businesses)

 

The amount of loan forgiveness can be up to the full principal amount of the loan plus accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount spent over the covered period on:

  1. payroll costs including salary, wages, and tips, up to $100,000 of annualized pay per employee (for eight weeks, a maximum of $15,385 per individual), as well as covered benefits for employees (but not owners), including health care expenses, retirement contributions, and state taxes imposed on employee payroll paid by the employer (such as unemployment insurance premiums);
  2. owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit, but excluding any qualified sick leave equivalent amount for which a credit is claimed under section 7002 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116-127) or qualified family leave equivalent amount for which a credit is claimed under section 7004 of FFCRA;
  3. payments of interest on mortgage obligations on real or personal property incurred before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business mortgage payments);
  4. rent payments on lease agreements in force before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business rent payments); and
  5. utility payments under service agreements dated before February 15, 2020 to the extent they are deductible on Form 1040 Schedule C (business utility payments).

 

What documentation will I be required to submit to my lender with my request for loan forgiveness? (Schedule C Businesses)

 

In addition to the borrower certification required by Section 1106(e)(3) of the Act, to substantiate your request for loan forgiveness, if you have employees, you should submit Form 941 and state quarterly wage unemployment insurance tax reporting forms or equivalent payroll processor records that best correspond to the covered period (with evidence of any retirement and health insurance contributions). Whether or not you have employees, you must submit evidence of business rent, business mortgage interest payments on real or personal property, or business utility payments during the covered period if you used loan proceeds for those purposes.

 

The 2019 Form 1040 Schedule C that was provided at the time of the PPP loan application must be used to determine the amount of net profit allocated to the owner for the eight-week covered period. The Administrator, in consultation with the Secretary, determined that for purposes of loan forgiveness it is appropriate to require self-employed

 

PPP FAQ – Updated 5/5/2020

 

20. Question (Published April 8, 2020): The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?

 

Answer: The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval.

 

36. Question (Published April 26, 2020): To determine borrower eligibility under the 500-employee or other applicable threshold established by the CARES Act, must a borrower count all employees or only full-time equivalent employees?

 

Answer: For purposes of loan eligibility, the CARES Act defines the term employee to include “individuals employed on a full-time, part-time, or other basis.” A borrower must therefore calculate the total number of employees, including part-time employees, when determining their employee headcount for purposes of the eligibility threshold. For example, if a borrower has 200 full-time employees and 50 part-time employees each working 10 hours per week, the borrower has a total of 250 employees.

 

By contrast, for purposes of loan forgiveness, the CARES Act uses the standard of “full-time equivalent employees” to determine the extent to which the loan forgiveness amount will be reduced in the event of workforce reductions.

 

40. Question (Published May 3, 2020): Will a borrower’s PPP loan forgiveness amount (pursuant to section 1106 of the CARES Act and SBA’s implementing rules and guidance) be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?

 

Answer: No. As an exercise of the Administrator’s and the Secretary’s authority under Section 1106(d)(6) of the CARES Act to prescribe regulations granting de minimis exemptions from the Act’s limits on loan forgiveness, SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation. The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.

 

 

 

The 7(a) Loan Program is SBA's most popular program. It is used for a great number of reasons by start-up and existing small businesses that might not be able to secure loans through standard channels. 

  • Terms up to 10 years for working capital
  • Terms up to 25 years for fixed assets
  • Purchase land, buildings, equipment, inventory, and fixtures
  • Leasehold improvements
  • Refinancing debts for compelling reasons
  • Start-up business
  • Quick, local decisioning right here in Central New York
  • Attentive, friendly service from start to finish

Also called the Certified Development Company (CDC) Program, SBA 504 loans are designed to provide long-term, below market, fixed rate financing for major fixed finances and real estate.

  • Construction of new facilities
  • Renovating or converting existing facilities
  • Purchasing land and improvements
  • Purchasing long-term machinery and equipment
  • The 504 Program cannot be used for short-term working capital
  • Quick, local decisioning right here in Central New York
  • Attentive, friendly service from start to finish

SBA Express is a loan program that streamlines the processing and loan procedures for less complex SBA Loans. Costs are lower and decisions are faster.

  • Accelerated process for short-term needs
  • Seasonal lines of credit
  • Quick, local decisioning right here in Central New York
  • Attentive, friendly service from start to finish