UPDATE: On January 19, 2021, the SBA released revised loan forgiveness forms for the Paycheck Protection Program.
Additionally, on June 17, 2020, the SBA released a three-page "EZ" Paycheck Protection Program Forgiveness Application that is expected to streamline the forgiveness process for a substantial portion of PPP borrowers. On May 15, 2020, the SBA released the Paycheck Protection Program Forgiveness Application. In the meantime, please retain receipts and documentation detailing how your PPP funds were spent.Īs noted in the CARES Act, as well as the Interim Final Ruling for the Paycheck Protection Program (PPP), all or part of your PPP loan may be forgivable, provided that certain specific criteria relative to the use of the proceeds of the loan are met. Rest assured, we will share updates with you as new information about the Paycheck Protection Program forgiveness process becomes available. Department of the Treasury and the Small Business Administration (SBA) continue to issue new guidance. The borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven. Interest accrues during the time between the disbursement of the loan and SBA remittance of the forgiveness amount. Payments will be due after SBA determines eligibility - Current SBA guidance states: If only a portion of the loan is forgiven, or if the forgiveness application is denied, any remaining balance due on the loan must be repaid by the borrower on or before the maturity date of the loan. If the loan is fully forgiven, the borrower is not responsible for any payments. There is no immediate need to apply for PPP loan forgiveness - Current SBA guidance is as follows: As long as a borrower submits its loan forgiveness application within 10 months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by SBA.
Please note that businesses that received the loan prior to June 5, 2020, may elect the 8-week (56-day) or 24-week covered period, while businesses that received the funding after June 5, 2020, must use the 24-week period.
#Ezpaycheck partial month full
Taking advantage of the full 24 weeks may give you additional time to take steps that will help you achieve full loan forgiveness. While you may submit your loan forgiveness application to F&M Trust at any time, we encourage you to take the following considerations into account in deciding when to submit your forgiveness applications:Įxtended coverage - The covered period of PPP loans was extended from 8 weeks to 24 weeks (168 days) from the date the loan was disbursed. A note to our customers on the Paycheck Protection ProgramĪt F&M Trust, we understand that forgiveness for your Paycheck Protection Program (PPP) loan is important to your business.
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