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Paycheck Protection Program

IMPORTANT UPDATE: On April 24, 2020 President Trump signed into law an amendment to the CARES Act, which authorizes an additional $320 billion for the SBA Paycheck Protection Program. We are accepting PPP applications on a first-come, first-serve basis. Please read below for important information about the program and how to apply.

If you previously submitted an application during the first round of funding and have already been contacted by a Loan Officer, you do not need to re-apply. We are submitting eligible in-process applications to the SBA for approval and will contact you as soon as we have a response from the SBA.

If you already obtained an SBA PPP Loan at Thomaston Savings Bank, click here to learn more about the forgiveness application phase.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed to provide emergency relief for small- to medium-sized businesses disrupted by COVID-19. The Act created the Paycheck Protection Program, which serves as an extension of the Small Business Administration (SBA) 7(a) loan program, allowing us to provide federally-backed, forgivable loans to eligible businesses. As an SBA Preferred Lender, Thomaston Savings Bank is participating in this program to help offer relief to businesses in our community.

What assistance does the program provide?

The Paycheck Protection Program is administered by the SBA. The intent of the program is to provide loans on favorable terms to small businesses impacted by the challenging economic environment caused by the COVID-19 pandemic.

  • Businesses including non-profits that were in business as of February 15, 2020 will be eligible to apply.
    • Businesses must have fewer than 500 employees (may vary based on SBA requirements for your industry).
    • This includes sole proprietorships and independent contractors.
  • The loan is to cover certain operating expenses for the period of February 15, 2020 to June 30, 2020, such as:
    • Payroll and healthcare costs
    • Mortgage interest and rent
    • Utility payments
    • Interest on other debt incurred prior to February 15, 2020.
  • The maximum loan amount is 2.5 times your average monthly payroll costs for the prior year up to $10 million.
  • The government guaranty for this loan is 100% and the SBA guaranty fee is waived.
  • Loan recipients will be eligible for loan forgiveness on a portion of the loan. Loan forgiveness will be reduced if there is a reduction in the number of employees or employee compensation during this period.
  • The term of the loan is two years with a fixed interest rate of 1.00% and with the first 6 months payments being deferred. Interest accrues during the deferral period. There is no prepayment penalty.
  • No collateral or personal guarantee is be required.

The information provided above is preliminary and subject to change until the SBA issues final guidance.

Additional resources:

  • NEW! Download the U.S. Treasury PPP Loans Frequently Asked Questions
  • Download the U.S. Treasury PPP Information Sheet for Borrowers.
  • Download the U.S. Chamber of Commerce Coronavirus Emergency Loans Small Business Guide and Checklist.
  • Download the SBA Faith-Based Organizations FAQ
  • Download the SBA Affiliation Rules for PPP Overview.
  • Download the SBA How to Calculate Maximum Loan Amount FAQ

Next Steps

Step 1 - Does Your Business Operate In Our Area?

As a mutual savings bank, we are committed to helping the businesses in our local community. Therefore, we will only accept applications from businesses that operate in our lending assessment area. Our lending assessment area includes the following Connecticut towns: Avon, Bantam, Bethlehem, Bristol, Burlington, Canton, Canton Center, Cheshire, Collinsville, Farmington, Goshen, Harwinton, Lakeside, Litchfield, Marion, Middlebury, Milldale, Morris, Naugatuck, New Britain, New Hartford, New Preston Marble Dale, Newington, North Canton, Northfield, Oakville, Oxford, Pequabuck, Pine Meadow, Plainville, Plantsville, Plymouth, Prospect, Roxbury, South Britain, Southbury, Southington, Terryville, Thomaston, Torrington, Unionville, Washington, Washington Depot, Waterbury, Watertown, West Hartford, Winchester Center, Winsted, Wolcott, Woodbury.

If your business does not operate in our lending assessment area, we encourage you to find an approved SBA lender in your area.

Step 2 - Supporting Documentation

To complete the application, you will need to calculate average monthly payroll. We recommend you have the following documentation readily available. We will request copies of this documentation later in the application process, so keep it handy.

For Corporation, S-Corp, LLC, 501(c)(3) Non-Profit, 501 (c)(19) Veterans Organization, and Tribal Business (sec. 31(b)(2)(C) of Small Business Act:

  • Employee wages for the last twelve months including paid time off, sick pay, and family medical pay. (Many payroll providers, such as ADP and Paychex, have created a standardized report for PPP applications that you can request.)
  • Withholding for state and local taxes on employee compensation.
  • 1099’s paid to independent contractors of the core business that provide employee type functions.
  • Documentation regarding amounts paid for employee health insurance for the past 12 months.
  • Documentation regarding the amounts paid for retirement plan funding for the past 12 months.

For Sole Proprietor and Independent Contractor:

  • 2019 IRS Form 1040 U.S. Individual Income Tax Return
  • 2019 IRS Schedule C (Form 1040) Profit or Loss From Business
  • 2019 IRS Form 1099-MISC Miscellaneous Income
  • 2019 IRS Form 940 Employer's Annual Federal Unemployment Tax Return
  • 2019 IRS Form 941 Employer's Quarterly Federal Tax Return

Step 3 - Apply Now

Once you have compiled the supporting documentation, click Apply Now below to access our secure Paycheck Protection Program portal to apply online. The application will open in a new browser window so this page will remain available for reference. If you want to prepare your application in advance of inputting your responses online, click here for the list of questions you will be required to complete.


​​​​​Step 4 - We'll Be In Touch Soon

Once you have submitted your application at the link above, a Loan Officer will review it and contact you to collect the supporting documentation listed above. 

We are working as quickly as possible to process the extraordinary volume of requests we have already received; please allow us up to five business days to respond. Participation in the SBA Paycheck Protection Program is subject to verification of payroll and financial information, SBA approval, and availability of program funds.

Thank you for choosing Thomaston Savings Bank. We appreciate your business.