Paycheck Protection Program (PPP) Loan Forgiveness
As of October 26, 2020, PPP Loan Forgiveness Applications are now being accepted. Please contact your State Bank lender directly with completed applications for processing.
The SBA and U.S. Treasury announced and released a simpler loan forgiveness application for PPP loans of $50,000 or less. This action streamlines the PPP forgiveness process and provides administrative relief for a large number of PPP recipients throughout the country. Read the entire new release here. Please see the links below for the new IFR #25, PPP Forgiveness Application Form 3508S, and instructions.
PPP Loan Forgiveness Application Form 3508S PPP Loan Forgiveness Application Form 3058S Instructions
The SBA and U.S. Treasury announced a revised borrower friendly PPP loan forgiveness application, as well as a new EZ version of the forgiveness application. Read the entire news release here. Please see the links below for both versions of the application and instructions.
Revised PPP Loan Forgiveness Application Revised PPP Loan Forgiveness Application Instructions
PPP Loan Forgiveness Application Form EZ PPP Loan Forgiveness Application Form EZ Instructions
Interim Final Rule (IFR) #18 – Paycheck Protection Program – Revisions to Third and Sixth Interim Final Rules. This explains amendments under the Flexibility Act. Read the entire IFR #18 for complete details.
Interim Final Rule (IFR) #17 – Paycheck Protection Program – Revisions to First Interim Final Rule are released. This explains revisions related to loan forgiveness that were recently passed in the Paycheck Protection Program Flexibility Act. We are still waiting for the announcement and release of a revised PPP Loan Forgiveness Application. Read the entire IFR #17 to better understand the revisions.
A joint news release by the Small Business Administration (SBA) and U.S. Treasury was announced regarding the enactment of the Paycheck Protection Program Flexibility Act. The SBA in consultation with Treasury will be issuing updated rules and guidance, as well as a modified loan forgiveness application. In the meantime, please read the following news release for important loan forgiveness changes. Some of the key points in the new legislation include:
- Extending the covered period for loan forgiveness from 8 weeks after the date of the loan disbursement, to 24 weeks.
- Lowering the requirement that 75 percent of the loan forgiveness must be spent on payroll costs, to 60 percent.
- Provide a safe harbor from reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity.
- Provide a safe harbor from reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees on 2/15/20, and unable to hire similar qualified employees by 12/31/20.
- Increase maturity of PPP loans from two years to five years.
- Extend deferral period for borrowers payments on PPP loans.
Interim Final Rule (IFR) #15 - Interim Final Rule on Loan Review Procedures and Related Borrower Responsibilities is released. This explains borrower representations and statements, SBA loan review, and the loan forgiveness process for Lenders. Read the entire IFR #15 to better understand the requirements.
Interim Final Rule (IFR) #14 - Paycheck Protection Program – Requirements – Loan Forgiveness is released. This explains the general process to obtain loan forgiveness, payroll and nonpayroll costs eligible costs, as well as other rules and guidance. Read the entire IFR #14 to better for a better understanding.
The SBA and U.S. Treasury released the Paycheck Protection Program loan forgiveness application and instructions for borrowers.