SBA Connecticut District Office News & Updates

Connecticut District Office  - July 2020

u s small business administration

From the Director's Desk....

Mark Hayward

5 Questions With Mark S. Hayward On... PPP/EIDL Loan Programs

Q: How do I apply for PPP forgiveness?

A: To receive PPP loan forgiveness, a borrower must complete and submit the Loan Forgiveness Application (SBA Form 3508, 3508EZ, or Lender equivalent) to its Lender (or the Lender servicing its loan). A borrower may submit a Loan Forgiveness Application before the end of the 8-week or 24-week covered period, provided that the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness and the borrower’s loan forgiveness
application accounts for any salary reductions in excess of 25 percent for the full covered period. Please note that your Lender won't be able to file your forgiveness application with the SBA until August 10, 2020 which is when the PPP Forgiveness Platform goes live. 

Q: Do PPP loans cover paid sick leave?

A: Yes. PPP loans covers payroll costs, including costs for employee vacation,
parental, family, medical, and sick leave. As long as 60% of the PPP loan is used towards payroll (including sick leave) then the loan is eligible for forgiveness. 

Q: My small business is a seasonal business whose activity increases from April
to June. Considering activity from that period would be a more accurate reflection of my business’s operations. However, my small business was not fully ramped up on February 15, 2020. Am I still eligible?

A: Yes. In evaluating a borrower’s eligibility, a lender takes into consideration whether a seasonal borrower was in operation on February 15, 2020 or for an 8-week period between February 15, 2019 and June 30, 2019. 

Q: I have received my EIDL Loan but never received the EIDL Advance money.  Will I receive that grant money?

A: At this time, the funds allocated to the EIDL Advance have been exhausted. If you did not receive the Advance prior to the funds being depleted, then you will not be receiving an Advance.

Q: I don't know where to begin looking for a PPP lender.  Where can I find one?

A: Contact the SBA's Connecticut District Office by emailing Connecticut_DO@sba.gov, and we will help you locate a participating PPP lender. 

If you have any questions about these or any other small business related topics, please contact us at Connecticut_DO@sba.gov. 


Join Administrator Wendell Davis for a PPP Loan Forgiveness Town Hall - TODAY, 7:00pm EDT

PPP Town Hall

Be Aware of EIDL Scams & Fraud!!!

SBA has become aware of certain suspicious activity associated with the COVID-19 EIDL loan program. SBA is requesting the assistance of depository financial institutions in identifying and reporting suspicious activity to SBA as well as to other appropriate regulatory agencies.

Examples of COVID-19 EIDL suspicious activity include, but are not limited to, the following:

  • Use of stolen identities or EIN or SSN numbers to qualify for the EIDL advance or EIDL loan.
  • Purported businesses, including front or shell companies, lacking indicia of operating presence or history, receiving EIDL advances or EIDL loans.
  • Applicants working with third parties to obtain EIDL advances or EIDL loans in exchange for keeping a percentage of the funds.
  • Account holders that are victims of social engineering schemes and may not know that the source of the funds is an EIDL advance or EIDL loan.
  • A customer advises a financial institution that the customer received a COVID-19 EIDL ACH deposit from “SBAD TREAS 310” and “Origin No. 10103615” into their account, but did not apply for a COVID-19 EIDL loan.
  • A customer receives a COVID-19 EIDL ACH deposit after the financial institution previously denied the customer’s Paycheck Protection Program (PPP) loan application, particularly where the financial institution identified inaccurate or incomplete information in the customer’s PPP loan application.

For suspicious EIDL advance or loan deposits, the institution should follow the protocols of the institution’s compliance division and the institution’s state or federal regulator(s), including filing a Suspicious Activity Report with FinCEN as appropriate. Additionally, SBA requests that depository financial institutions report suspicious activity associated with the COVID-19 EIDL loan program to SBA’s Office of Inspector General through one of the following methods:

Telephone: OIG Hotline at 1-800-767-0385

Email: OIGHotline@sba.gov

Website: Complete the on-line OIG Complaint Submission Form at https://www.sba.gov/office-of-inspector-general


Lender Match

Find a lender interested in working with you at sba.gov/lendermatch. This matching tool connects entrepreneurs with SBA Lenders in your area. 


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