SBA Paycheck Protection Program (PPP) – Forgiveness Phase
The SBA will publish additional guidance on loan forgiveness and we will update this page as guidance is issued. Disclaimer: The information included herein has been obtained from sources deemed reliable, but, it is not in any way guaranteed, and it, together with any opinions expressed, is subject to change at any time. Any and all details offered are preliminary and are therefore subject to change at any time. This has been prepared for general information purposes only and does not consider the specific objectives, the financial situation, or the particular needs of any individual or company. This information is, by its very nature, incomplete and specifically lacks information critical to making final decisions, and, is dependent on the occurrence of future events which cannot be assured. It is recommended you seek the advice of a competent professional. For additional information visit the SBA FAQ for Lenders and Borrowers.
Update October 13, 2020
The Small Business Administration has opened the loan forgiveness submission process for the Paycheck Protection Program which was established in April 2020 as part of the CARES Act.
Borrowers are required to apply for loan forgiveness within 10-months after the last day of the covered period for the loan. The covered period is either: (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or (2) if the Borrower received its PPP loan before June 5th, 2020, the Borrower may elect to use an 8-week (56-day) covered period.
The SBA has provided three loan forgiveness applications – Form 3508EZ ,Form 3508, and Form 3508S (for PPP loans totaling $50,000 or less). All applications, along with instructions for completion and checklist of items required for forgiveness, can be found by clicking the links below.
Borrowers who have a PPP loan with a total amount of $50,000 or less and have PPP loans totaling less than $2 million when all affiliates are included should use Form 3508S. For borrowers who do not qualify to use Form 3508S, it is recommended to begin with Form 3508EZ. If a borrower can check at least one of the three boxes shown on page one of the instructions, they may continue and use the EZ form for their loan forgiveness. If a borrower is not able to check at least one of the three boxes, they must use Form 3508. More information can be found at the SBA Frequently Asked Questions (10-13-2020)
Borrowers can click here to upload their complete loan forgiveness package to our secure system. Please be certain the package you submit to us is complete with the appropriate forgiveness application and all supporting documentation stated on the checklist or there may be processing delays.
Per the guidelines of the Paycheck Protection Program forgiveness timeline, the bank has 60-days from the time it receives a complete loan forgiveness package to review and submit the package to the SBA. The SBA then has up to 90-days to review the submission and remit the determined forgiven amount plus accrued interest to the bank.
As we work through the forgiveness process of all our borrowers, we ask for your patience and understanding. If changes or updates to the loan forgiveness process are made by the SBA, we will post to this webpage.
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