SBA PAYCHECK PROTECTION PROGRAM

PPP Application and Forgiveness

We’re here to help you overcome the obstacles that stand in the way of your goals and persevere through these trying times.

Aiming to help small businesses who have been severely impacted by Coronavirus.

For more than 60 years, Northern Bank has been a trusted partner and source of strength for our communities and customers we serve. We have earned the trust and confidence of our clients by working diligently and collaboratively with them when they face both challenges and opportunities.

The coronavirus pandemic presents new and different challenges for all of us, but as always, we are here to help our customers overcome the obstacles that stand in the way of their goals and persevere through trying times.

PPP Application Portal is Closed

Northern Bank has closed its PPP application portal because the SBA is no longer accepting applications from most lenders.

PPP funding may still be available from qualifying “community financial institutions,” which includes minority depository institutions and community development financial institutions.

If you have questions, please contact us at sba-ppp@nbtc.com. Thank you for your continued interest in Northern Bank.

Allowable Expenses

In addition to payroll costs, mortgage interest, rent, and utilities, both first and second draw loans can be used for:
Operation Expenditures

Payments for business software or cloud computing service for operational needs.

Property Damage Costs

Property damage caused by public disturbances in 2020 that were not covered by insurance.

Supplier Costs

Payments to suppliers for goods essential to operations pursuant to contract in place before PPP loan is made.

Worker Protection Expenditures

Payments for PPE or business adaptations to comply with COVID-19-related governmental regulations.

SBA PPP Forgiveness Updates

Simplified Forgiveness Application

For loans $150,000 or less

  • Simplified, one-page certification attesting to the accuracy of information provided and that borrower complied with requirements of Program.
  • Borrowers do not need to submit additional supporting documentation (but must retain that documentation), provided that borrowers substantiated the 25% gross receipts reduction at the time of initial second draw application.
Economic Injury Disaster Loan (EIDL)

Advances will no longer be deducted from forgiveness amount

  • For borrowers who already have a post-forgiveness PPP balance as a result of an EIDL advance deduction, the SBA will automatically remit a reconciliation payment to the bank along with interest to the remittance date.
  • The bank will notify borrowers if the SBA remits a reconciliation payment on their PPP loan. If the amount remitted to the bank exceeds the remaining principal balance of the PPP loan (because the borrower made a payment on the loan), the bank will remit the excess amount, including accrued interest paid by the borrower, to the borrower.

Northern Bank Forgiveness Portal

Northern Bank has created a portal to allow borrowers to submit all of the documents needed to process their SBA PPP forgiveness application. It mirrors the information laid out in the SBA’s PPP forgiveness application. As a reminder, in order to know what information you need to apply, you must read the full instructions and FAQs provided by the SBA before logging in to the application portal. We recommend consulting with your attorney or accountant for advice on your application.

How-To Apply Guides

The following How-To Apply Guides are for Northern Bank clients to walk you through all of the steps when applying for PPP loan forgiveness through our portal:

How to Apply Guide

Form 3508

Standard application

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How to Apply Guide

Form 3508S

For borrowers with PPP loans of $150,000 or less

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How to Apply Guide

Form 3508EZ

For borrowers who did not reduce employee levels, wages or hours; or for borrowers who are self-employed with no employees

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Additional Changes Made to PPP Loans

Improved tax treatment

Business expenses paid with PPP loan proceeds (first or second draw) are tax-deductible, even if borrower receives full forgiveness (assuming expenses are otherwise deductible).

New definition for “seasonal employer”

Business that does not operate for 7 or more months per year, or during preceding calendar year, business had gross receipts for any 6-month period that were 33.33% or less than the other 6 months.

Time period used to calculate PPP loan amount

Borrowers can use average monthly payroll costs for 2019, 2020 or last 12 months (with some exceptions).

New entities eligible

Housing coops, IRS 501(c)(6) entities, and direct marketing organizations are now eligible for PPP loans.

RESTAURANT REVITALIZATION GRANTS

(This is not a Northern Bank program.)

Under the American Rescue Plan Act of 2021, the SBA is authorized to make grants to restaurants, bars, and other food and drink businesses. Key points of the program include:

  • Grant amount is determined by the drop in gross receipts from 2019 to 2020, with a maximum of $10 million per entity (aggregated with affiliates) and $5 million per physical location.
  • Program is not open to entities that, as of March 13, 2020, own or operate, together with affiliated businesses, more than 20 locations.
  • Applicant cannot apply for or receive a Shuttered Venue Operator Grant.
  • Eligible entities can obtain PPP loans, but any first or second draw PPP loan proceeds offset the drop in gross receipts that is used to calculate the grant amount.
  • Funds must be used by December 31, 2021 on eligible expenses, including payroll, mortgage payments, rent, utilities, maintenance expenses, supplies, and operational expenses.
  • Unused funds must be returned.
  • Applicants must submit a completed SBA Form 3172, IRS Form 4506-T, and documents demonstrating gross receipts and, if applicable, eligible expenses (tax returns and related forms, banks statements, financial statements, or point-of-sale reports).
  • Franchisees not listed on the SBA’s Franchise Directory may need to submit additional documents.
  • Grants are being offered on a first-come, first-served basis, with the exception of a 21-day priority period designated for small businesses controlled and owned by women or veterans, and for socially and economically disadvantaged small businesses, set asides for businesses with 2019 gross receipts of $1,500,000 or less.


The SBA established a website for the Program, which includes the Program Guide and a sample Restaurant Revitalization Funding Application.

When the SBA opens the Program, eligible entities can apply through the SBA’s online application portal or through an SBA Point-of-Sale Restaurant Partner (a technology company that provides software, hardware, and payment services to the restaurant industry).

Extension of Debit Relief Program Under Section 1112 of CARES Act

The SBA will make additional first and second round principal and interest payments on certain SBA loans, including Section 7(a) loans. Below are the current SBA parameters:

  • For covered loans approved on or before September 27, 2020 and disbursed on or after September 28, 2020, the SBA will make 3 months of first round payments.
  • In addition to the first round payments, for covered loans approved before March 27, 2020 (includes loans on deferment) the SBA will make 2 months of second round payments. For borrowers in certain industries that have been substantially impacted by the COVID-19 pandemic (including restaurants), the SBA will make 3 additional second round payments, for a total of 5 second round payments.
  • For new covered loans approved from February 1, 2021 through September 30, 2021, the SBA will make 3 months of second round payments.
  • No second round payments will be made on covered loans approved from March 27, 2020 through September 27, 2020 (but such loans are still eligible for first round payments).
  • No second round payments will be made on loans approved between September 28, 2020 and January 31, 2021.
  • Monthly payments made by the SBA will be capped at $9,000 for payments on most loans – excess over $9,000 is the responsibility of the borrower.
  • Payments made on 7(a) loans are not taxable.
EMPLOYEE RETENTION CREDIT

(This is not a Northern Bank program)

Eligible employers can claim a refundable federal tax credit:

  • Against their share of the applicable federal employment taxes
  • For qualified wages paid to employees
  • After March 12, 2020, through June 30, 2021

The credit can be worth up to $5,000 per employee for 2020 and up to $7,000 per employee for each of the first two quarters in 2021.

PPP loan recipients are permitted to claim the credit, a change that is retroactive to March 2020. However, payroll costs that are qualified wages for the Employee Retention Credit are not eligible for PPP loan forgiveness if the employer elects to claim the credit for those amounts.

Please see the IRS website for additional information: https://www.irs.gov/coronavirus/employee-retention-credit.

EIDL Loans and Advances

(This is not a Northern Bank program.)

Under the Economic Aid Act, additional funds have been allocated for Economic Injury Disaster Loan grants or advances, up to $10,000 per business, through December 31, 2021. The SBA will also make available targeted EIDL advances to businesses in low-income communities that have suffered an economic loss greater than 30% (and employ not more than 300 employees). Please check the SBA’s website for more information on these programs.

Grants for Shuttered Venue Operators

(This is not a Northern Bank program)

The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act includes a temporary SBA grant program for “Shuttered Venue Operators.” Eligible entities may receive a grant equal to 45% of 2019 gross revenue, up to $10 million. The criteria for eligible entities are very specific and should be reviewed closely.

Eligible entities will apply directly to the SBA, which is scheduled to reopen its application portal on April 24, 2021. You can sign up for an alert to be notified when the portal re-opens at https://www.svograntportal.sba.gov/s/.

Eligible entity types
  • Live venue operator or promoter; theatrical producer; or live performing arts organization operator;
  • Museum operator;
  • Motion picture theater operator; and
  • Talent representative.
Eligibility criteria
  • Fully operational on February 29, 2020;
  • 25% gross earned revenue drop (from any quarter in 2019 to corresponding quarter in 2020);
  • Not publicly-owned or controlled;
  • Cannot have received more than 10% of 2019 gross revenue from federal funding;
  • Entity and owners/controlling entities do not own or operate venues/locations in more than one country or more than 10 states;
  • Did not employ more than 500 employees as of February 29, 2020;
  • Intention to resume regular operations;
  • Certification of need based on economic conditions;
  • Eligible entities can receive both a first or second draw PPP loan and an SVO grant except as follows: if an applicant is approved for an SVO grant before the SBA issues a PPP loan number, the applicant is not eligible for the PPP loan and acceptance of any PPP proceeds will be considered an unauthorized use.
Grant size
  • 45% of 2019 gross earned revenue if in operation on January 1, 2019; if not, 6 times average monthly gross earned revenue during 2019
  • The SBA will reduce any grant by the amount of any PPP loan proceeds received after December 27, 2020.
  • Maximum grant = $10 million
Use of funds
  • Costs incurred March 1, 2020 through December 31, 2021 (or June 30, 2022 for supplemental grants).
  • Allowable expenses: payroll, rent, scheduled mortgage payments, scheduled debt payments, worker protection costs, utilities, payments to independent contractors, ordinary and necessary business expenses (maintenance, administrative, operating leases, state and local taxes, insurance).
Other
  • Eligible entities will be treated as independent, non-affiliated entities.
  • Two 14-day priority application periods for entities that suffered a 90% or 70% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic.
  • After the first two 14-day priority periods, a 28-day priority period for entities that suffered a 25% or greater earned revenue loss between one quarter of 2019 and the corresponding quarter of 2020.
  • Not more than 5 entities that are affiliated can receive grant.
  • Recipient must return any funds not used for eligible expenses within 1 year of disbursement.
  • Supplemental grants may be available.

For more information, please visit the SBA's website at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/shuttered-venue-operators-grant

Important Reminders

  • Terms and conditions are subject to change.
  • Check back for updates.
Be aware and protect yourself from scams

Northern Bank will not ask for confidential information—such as your name, password, PIN or other account information—if we reach out to you. See the Federal Trade Commission’s advice.

*All loans are subject to other requirements and availability of funds under the SBA program. Funds are limited.

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This information is accurate and updated as of 5.5.2021. Terms and conditions are subject to change.

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