Frequently Asked Questions
Can I start making PPP loan payments early?
You can begin making payments early, if you'd like. Please visit your local store to make a loan payment through the drive-thru or make an appointment to make a payment in the store.
How do I pay off my PPP loan?
Customers who wish to pay off their PPP loan can initiate the request by calling their local Store Manager or Relationship Manager.
Can I add my PPP Loan to my Online Banking?
At this time, PPP Loans are not available to be viewed in Online Banking.
Does my PPP loan accrue interest while my payments are deferred?
Yes, interest accrues during the deferral period. If the SBA approves your forgiveness request, the SBA will include accrued interest on the forgiven portion of your loan when they remit payment to TD Bank.
What is the term of my PPP loan?
If your PPP loan disbursement date was ON OR AFTER June 5, 2020, your loan term is 5 years. If your PPP loan disbursement date was BEFORE June 5, 2020, your loan term is 2 years, unless you and TD Bank mutually agree to change the term to 5 years.
How do I know if my PPP loan qualifies for forgiveness?
The full principal amount of your loan plus interest is subject to forgiveness if certain conditions are met. As the borrower, you are responsible for understanding the SBA's rules and if your loan qualifies for forgiveness. Please review the SBA and Treasury websites for information and resources on qualified expenditures and other conditions. You should check those websites frequently because program requirements are regularly updated. If you have additional questions, please seek assistance from your legal, accounting and tax advisors.
What does the SBA consider a qualified expense?
The actual amount of your PPP loan forgiveness will depend on the costs incurred and/or paid, as stated in the SBA guidance. Eligible costs include:
- Payroll costs, including employee benefits, tips, commissions, and state and local payroll taxes (at least 60% of the loan must be used for payroll costs to qualify for full forgiveness).
- Mortgage interest payments (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal (i.e., non-real estate) property incurred before February 15, 2020.
- Business rent or lease payments on lease agreements for real or personal property in force before February 15, 2020.
- Business payments for electricity, gas, water, transportation, telephone or internet access for which service began before February 15, 2020.
At least 60% of your forgiveness amount must be for qualified payroll expenses and up to 40% can be for qualified nonpayroll expenses. Please review the SBA and Treasury websites for information and resources on qualified expenditures and other conditions.
What is the Covered Period?
The Covered Period is the time period after disbursement of your PPP loan during which you must spend your proceeds on eligible expenses.
- If your PPP loan disbursement date was BEFORE June 5, 2020, your Covered Period is either 8 weeks OR 24 weeks (at your election). It cannot be a number of weeks in between 8 and 24.
- If your PPP loan disbursement date was ON OR AFTER June 5, 2020, your Covered Period is 24 weeks, but ending no later than December 31, 2020.
- Borrowers cannot apply for PPP forgiveness until they have spent 100% of the amount for which they are seeking forgiveness.
What is the Alternative Payroll Covered Period?
The alternative payroll covered period provides an additional option for borrowers who pay their employees on a biweekly (or more frequent) payroll schedule. For PPP loans that received funding prior to June 5, 2020:
- You may elect to calculate eligible payroll costs using either:
- An eight-week (56-day) period that begins on the first day of your first pay period following the PPP loan disbursement date.
- A 24-week (168-day) period that begins on the first day of your first pay period following the PPP loan disbursement date
- You may choose to calculate eligible payroll costs for forgiveness using the 24-week (168-day) period that begins on the first day of your first pay period following the PPP loan disbursement date.
- Select the Alternative Payroll Covered Period option wherever there is a reference in the PPP forgiveness application to "the Covered Period or the Alternative Payroll Covered Period."
Borrowers must apply the Covered Period, not the Alternative Payroll Covered Period, wherever there is a reference in the application to the "Covered Period" only. The Alternative Payroll Covered Period cannot extend beyond December 31, 2020.
How long are my PPP loan payments deferred?
Customers who apply for forgiveness will have to start making payments on any portion of their loan that is unforgiven once the SBA sends the approved forgiveness amount to TD Bank or informs TD Bank that the loan does not qualify for forgiveness. Customers that haven't yet applied for forgiveness will have to begin making payments on their loan starting 10 months after the end of their covered period. Interest accrues on PPP loans even during the deferral period. Customers should prepare to make payments on any unforgiven portion of their loan. Any portion of a PPP loan which is forgiven, plus interest accrued on that portion, does not have to be repaid.
When should I apply for PPP forgiveness?
Borrowers have until the end of their PPP loan term (two or five years) to apply for forgiveness. However, TD Bank cannot advise Customers when is the best time for them to apply for forgiveness. We suggest you consult with your accountant, legal or financial advisor to help you determine when timing is best for you.
Do I need to apply for forgiveness by December 31, 2020?
No. Borrowers have until the end of their PPP loan term (two or five years) to apply for forgiveness. However, Customers that haven't yet applied for forgiveness will have to begin making payments on the loan starting 10 months after the end of their covered period.
What information will I need to apply for forgiveness?
You should collect the following documents in preparation for submitting your application to TD:
- Bank account statements or payroll service reports documenting wages paid to employees
- Federal and State payroll tax filings
- Business mortgage account statements showing interest paid and proof of payment
- Business rent or lease payment statements and proof of payment
- Business utility bills and proof of payment (e.g., electric, gas, water, transportation, telephone or internet)
- Your 10-digit SBA loan number (found at the top of page 1 of your Promissory Note)
- Digitally organize your documents – the SBA limits the size of your document uploads to 25MB each
- Have a copy of your driver's license available to upload
What is an acceptable proof of payment for rent, mortgage or utility bills?
Acceptable proof of payment could be a copy of a canceled check, an email confirmation of payment or an account statement showing reference to a payment being received.
What is the difference between form 3508, 3508EZ and the 3508S?
Form 3508 is the full forgiveness form used when a borrower does not qualify for Form 3508EZ or Form 3508S. For additional details, please review Form 3508 on the SBA's website.
Form 3508EZ is a simplified PPP loan forgiveness application available to all Borrowers who meet the SBA's qualifications for usage, regardless of the size of their PPP loan. For additional details, please review Form 3508EZ on the SBA's website.
Form 3508S is a simplified PPP loan forgiveness application available to any Borrower with a PPP loan of $50,000 or less (and $2 million or less when combined with all affiliate loans). For additional details, please review Form 3508S on the SBA's website.
How do I apply for loan forgiveness?
Once available, customers who are eligible and ready can apply for PPP loan forgiveness through our online application.
How can I get my SBA loan number?
Your SBA loan number is located on your signed Promissory Note that you received via email from TD Bank. If the link to your Promissory Note is not working, or if you cannot locate it, please call your TD Bank Small Business Representative.
How will I know my application went through?
Once your application is submitted to TD Bank, you will receive a confirmation email from firstname.lastname@example.org with the forgiveness request number and your loan processor's name and contact information. You can view your application's status at any time by logging into TD's PPP loan forgiveness portal.
What if the application appears non-responsive?
For the best experience, we recommend you use Google Chrome and clear all browser cache prior to starting the application.
How long will it take to receive my forgiveness decision?
TD Bank will review your application and supporting documentation to determine if you qualify for forgiveness. TD Bank has up to 60 days from receipt of a complete application with all supporting documentation to submit your forgiveness request to the SBA. You should review the Terms and Conditions of your application to understand when your application will be deemed "complete." The SBA has up to 90 days from their receipt of your forgiveness request to complete their review and render a decision. TD Bank will contact you once we have received the SBA's final decision on your application.
What is a Notice of SBA PPP Loan Review?
The SBA reserves the right to review PPP loans at any time. They will inform TD when they have initiated a loan review, and we will notify you of their review via email. If you choose to submit an application for PPP loan forgiveness while an SBA loan review is pending, TD will be required to deny your forgiveness application without prejudice, until the SBA notifies us in writing that it has completed its review of your loan.
What is a Denial without prejudice?
The SBA requires that we deny your forgiveness application without prejudice if you apply for forgiveness while your PPP loan is under review by the SBA. Qualified borrowers may be able to apply for forgiveness after the SBA's review has concluded.
What impact do Economic Injury Disaster Loans (EIDL) have on the debt forgiveness of PPP loans?
If a borrower received a COVID-19 related "EIDL Advance Amount (a quickly disbursed advance of up to $10,000 on an EIDL loan that does not have to be paid back and is treated as grant under EIDL rules):
- Borrowers will need to note that information on their PPP loan forgiveness application as required by the SBA;
- SBA will deduct the EIDL Advance Amount from the forgiveness amount remitted to the Lender; and
- The remaining balance of the PPP Loan (after deduction the EIDL Advance Amount) must be paid to the Lender in accordance with the terms of the PPP Loan.
What happens to the remaining balance of my EIDL?
If you received an EIDL in excess of the "EIDL Advance Amount" you will need to repay the balance of your EIDL to SBA in accordance with its terms.
If I take the loan forgiveness, how will that impact my taxes?
TD Bank cannot provide tax, financial or legal advice. Please speak with your tax advisor to find out more about any tax impact of PPP loan forgiveness.
Will the forgiveness funds run out if I wait to apply?
Unlike the PPP loan application process, there is no limited pool of funds. All PPP loans have the potential for full forgiveness if the program requirements are met.
We suggest borrowers consult with their accountant, legal or financial advisor to assist them in determining when it is best for them to apply.
Where can I find more information about PPP loan forgiveness?
Please refer to the information and resources on the SBA and the Treasury sites. You should check these sites frequently as they are regularly updated. Until any further guidance is issued, you should follow the latest information. If you have additional questions, you should seek assistance from your own legal, accounting and tax advisors.