Paycheck Protection Program Loans (PPP)
PPP Forgiveness Fact Sheet - download here
PPP Loan Forgiveness Applications
*Update October 13, 2020 and New Documents
SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less
The U.S. Small Business Administration, in consultation with the Treasury Department, today released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars. Please see the attached news release for further information as well as links to the application & IFR.The Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) extended the deferral period for borrower payments of principal, interest, and fees on all PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period). Previously, the deferral period could end after 6 months.</br
The extension of the deferral period under the Flexibility Act automatically applies to all PPP loans.
Update August 10, 2020
The PPP loan application deadline was Saturday, August 8, 2020, and the SBA has stopped processing new PPP loan applications. Sugar River Bank is currently no longer taking applications.
It is time to start submitting PPP Loan Forgiveness Applications.
If you would like to attend online training, please sign up in one of the links in the section below.
FORGIVENESS APPLICATION TRAINING:
The U.S. Small Business Administration’s West Virginia District Office welcomes PPP clients to join us as our West Virginia District Office teams walk them through the process of filling out the Paycheck Protection Program EZ Application.
All are welcome to join us as we review who can use the EZ form and they will go step by step in how to fill the form out. Easy as 1-2-3!
Registration required, click date below to register!
- Wednesday, August 12, 2020 at 12 pm - New!
- Wednesday, August 19, 2020 at 12 pm - New!
- Wednesday, August 26, 2020 at 12 pm - New!
June 22, 2020
The SBA has streamlined PPP Forgiveness Application for many PPP borrowers.
To our PPP clients:
On June 11, 2020, the U.S. Small Business Administration ("SBA") issued an interim final rule (the "Interim Final Rule") implementing the changes made to the SBA’s Paycheck Protection Program (the "PPP") by the Paycheck Protection Program Flexibility Act of 2020 (the "PPP Flexibility Act"). The PPP Flexibility Act changed many aspects of the PPP , two of which include:
- Giving the borrower the option of using the original 8-week covered period (if their loan was made before June 5, 2020), or extending the covered period for loan forgiveness to 24 weeks, which provides greater flexibility for borrowers to qualify for loan forgiveness.
- Lowering the requirements from 75% to 60% of a borrower’s loan proceeds that must be used for payroll costs during the 24-week loan forgiveness period. If a borrower uses less than 60% of the loan amount for payroll cost during the forgiveness period, the borrower may be eligible for partial loan forgiveness.
The Small Business Administration released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.
*Please note that we are still awaiting guidance from the SBA regarding the submission process for the forgiveness application. We ask that you not submit your forgiveness application to us until we receive that guidance. We will update our website when we are ready to accept the forgiveness applications.