Thanks so much for your patience as the PPP Loan Forgiveness process has evolved.
Today we have a few updates to share with you, along with our recommendation about how to proceed.
1. First, the Small Business Administration (SBA) has begun processing and approving Forgiveness Applications. It is nice to see that the process is finally moving forward. We’re recommending that you get started now (see below).
2. New: If you received a PPP Loan for less than $50,000, your Forgiveness process just got easier.On October 8, the SBA released PPP Loan Forgiveness Application Form 3508S, which requires fewer calculations and less documentation for borrowers. If your loan was for less than $50,000, here are the advantages of using this simplified form:
- Both Form 3508 and Form 3508EZ require borrowers to show calculations for the Forgiveness amount requested. But Form 3508S simply asks you to provide the Forgiveness amount you’ve requested and certify the conditions via initials and signatures.
- Additionally, if you are using Form 3508S, your loan amount will not be reduced due to a reduction in headcount (FTE) or salaries or wages.
Your application will still be reviewed with supporting documentation for accuracy. And of course there are significant penalties for knowingly making a false statement to obtain Forgiveness.
3. There has not been any movement on the easing of requirements for loans of $50,000 to $150,000. Despite Congressional support and industry lobbying, this has been hung up with other stimulus measures and we do not see this moving forward in the foreseeable future.
4. So…at this time, we recommend you move forward with your PPP Loan Forgiveness Application if you are ready. We no longer believe it is worth waiting to see if additional easing measures are passed by Congress. Please call or email Andrew Richardson (603-355-1614; firstname.lastname@example.org) or Amy Lehr (603-355-1650; email@example.com) and one of them will help you begin the process. To make the process as easy as possible for you, SBW will provide you with a digital Forgiveness Application that’s been pre-populated with your loan information. The application will guide you in determining which form may work best for you.
If you are still not ready to proceed, that’s fine. Just contact us when you are ready and we will initiate the process with you.
A few more things you should know:
- You have up to 10 months from the end of your covered period to apply for Forgiveness – this is also your deferment period. We are working to ensure your loan reflects the correct dates.
- Once submitted to us, SBW has up to 60 days to review and process your application, and then the SBA then has up to 90 days to review submitted applications.
- Remember: You’ll need to provide documentation with all Forgiveness Applications, no matter which form you use.
- Finally, a “Fraud Alert”: It has come to our attention that businesses are being targeted nationwide by fraudsters purporting to be agents of the U.S. Small Business Administration (SBA) conducting site visits as part of the PPP Loan program. The SBA is not conducting site visits and would never request copies of sensitive documents in person. Please contact local authorities should you be visited by these individuals.
At Savings Bank of Walpole, we remain committed to communicating with you on a timely basis.If you have any questions or concerns, we encourage you to contact Andrew Richardson at 603-355-1614, or Amy Lehr at 603-355-1650.
Senior Vice President/ Senior Lender