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Guidance about PPP Loan Forgiveness

We continue to receive updates and guidance through the SBA about the loan forgiveness process, and we will provide updates as we receive them. Thank you for your patience, and for choosing to partner with us for your PPP loan.


Most Recent Update as of 10/9/2020


Good Morning,

 

First, an update on SBA PPP Forgiveness:

Since the last email I sent out on 8/27/20; emails from Smart Communications with invitations to the application for forgiveness portal for loans greater than $150,000 were sent out and a number of borrowers have submitted their forgiveness applications. We have not received back any forgiveness proceeds from SBA yet, but we hope those will start arriving in the next few weeks. We waited to send out invitations to the portal for loans under $150,000 initially because there is bipartisan legislation pending in the US Senate called The Paycheck Protection Program Small Business Forgiveness Act, S. 4117, which has companion legislation in the House, HR 7777, of the same name. These bills would streamline the forgiveness process for loans less than $150,000.  Just yesterday, the SBA issued a new, streamlined and simple application for forgiveness for loans less than $50,000. Please watch your emails as we plan to send out invitations from Smart Communications for loans of all sizes as soon as this process is clarified.

 

Second, an update on loan payment modifications:

We also want to make sure you are aware of changes to your repayment obligation as mandated by Congress in accordance with the Paycheck Protection Program (“PPP”). As set forth in the attached IFR, Congress has altered the terms for repayment of all PPP loans, including yours. First, the IFR extends the “covered period” from 8 to 24 weeks. The “covered period” is the amount of time from the date of funding that a borrower has to use the funds. Second, your PPP loan payments will be deferred for up to 10 months from the last day of your covered period.

 

This means that any borrower that originally signed a PPP loan note which provides for a 6 month loan repayment deferral period now is entitled to have all loan payments deferred for 10 months from the end of your covered period or until the date on which SBA remits the loan forgiveness amount to FFBT (or provides notification to FFBT that no loan forgiveness is allowed).  In other words, any repayment that may need to be made on your PPP loan will not start for approximately 16 months after the date your funds were disbursed or within 30 days of notification from FFBT that SBA has remitted the approved loan forgiveness amount (or that SBA determined that no loan forgiveness was granted).  FFBT will provide you notice of the forgiveness amount and first payment due date.

 

Again, we thank you for the faith that you have placed in our organization and we hope to continue to serve you and your business. Please contact your respective loan officer or branch personnel as needed, or e-mail us. We are proud to serve you.  

 

Sincerely,

 

Your FFBT SBA Paycheck Protection Loan Team



PPP Loan Forgiveness Application and Info Links


https://www.sba.gov/document/sba-form-3508-paycheck-protection-program-loan-forgiveness-application

https://www.sba.gov/document/sba-form-3508-paycheck-protection-program-loan-forgiveness-application-instructions-borrowers

 

 

YOU MAY COMPLETE THE CHECKLIST IN THE BELOW INSTRUCTION LINK TO DETERMINE IF YOU CAN USE THE 3508EZ FORGIVENESS APPLICATION

https://www.sba.gov/document/sba-form-3508ez-paycheck-protection-program-ez-loan-forgiveness-application

https://www.sba.gov/document/sba-form-3508ez-paycheck-protection-program-ez-loan-forgiveness-application-instructions-borrowers

 

 

A BORROWER MAY USE THE BELOW STREAMLINE FORM ONLY IF THE BORROWER RECEIVED A PPP LOAN OF $50,000 OR LESS.
A Borrower that, together with its affiliates, received PPP loans totaling $2 million or greater cannot use this form.

https://www.sba.gov/document/sba-form-3508s-ppp-loan-forgiveness-form-3508s

https://www.sba.gov/document/support-ppp-loan-forgiveness-form-3508s-instructions


8/27/2020 Update

Good Afternoon,

 

The SBA has opened up the portal to allow customers to apply for forgiveness for their PPP loan and FFBT has a system to facilitate this through an online application portal.  We are now starting to send out invitations to our clients in batches for them to fill out the forgiveness application on the portal.  As of this time, we are waiting to send out invitations to those with loans under $150,000, due to ongoing legislation pending in Congress that may simplify the forgiveness process for those loans and possibly others.  For those > $150,000, please watch your email for an invitation from Smart Communications within the next couple weeks. Below is a link to a video that we have prepared to walk you through the process of filling out your forgiveness application through the portal, a link to the most recent SBA FAQ and step by step guidance on how to fill out the forgiveness application. 

https://www.ffbt.com/business/lending/sba-loan/ppp-loan-forgiveness-demonstration

https://www.sba.gov/document/support-frequently-asked-questions-ppp-loan-forgiveness

 

  1. Borrower will receive two emails from FFBT via SmartCommunications
    • One containing a link to access the Forgiveness Application adaptive Interview
    • One containing a code to access the above-mentioned link
  2. Once the Interview is initiated, if Preparer is not an authorized signer, they should answer the appropriate question and input signer name and email address
  3. Borrower will have 30 days to complete the Interview
    • Daily reminders will be provided until completed
    • Borrower can partially complete and resume later
    • If application is not completed within the allotted time-frame, FFBT must initiate the process again
  4. The answers to the adaptive Interview will flow into the appropriate application forms which are created in DocuSign for customer’s signature
    • SBA Form 3508 – Paycheck Protection Program Loan Forgiveness Application

Or

SBA Form 3508EZ – Paycheck Protection Program Forgiveness Application

    • PPP Loan Forgiveness Application Schedule A Worksheet Tables 1 and 2
    • PPP Borrower Demographic Information Form
    • Any attachments borrower included during the interview
  1. Once the DocuSign application is signed by customer, the documents will be provided to FFBT’s PPP Forgiveness team.

Again, we thank you for the faith that you have placed in our organization and we hope to continue to serve you and your business. Please contact your respective loan officer or branch personnel as needed, or e-mail us. We are proud to serve you.  

Sincerely,

Your FFBT SBA Paycheck Protection Loan Team


8/7/2020 Update

Good Afternoon,

 

This email to update you on two main announcements on dates you may have been hearing about recently in the news.

 

  1. August 8 is the extended deadline to apply for PPP loan. Barring an extension of that deadline in Congress, we will stop accepting SBA PPP loan applications as of today.  After that, our main focus will turn to the forgiveness process.
  2. August 10 is the date that SBA has given that their loan forgiveness portal will go live. There are still some negotiations ongoing in Congress regarding the forgiveness option, so we are watching that to get the final instructions before we move forward with our forgiveness requests to SBA

 

Once we are ready to start processing forgiveness apps, you will receive two emails – The first will be an invitation to fill out a Forgiveness Application adaptive interview that will answer the questions needed to process your loan forgiveness. The second email will contain your password to access that site. Once you receive the email, you will have 30 days to complete this process. Once that process is complete, and after a review from our team, we then plan to submit your forgiveness application to SBA through their portal. SBA has said that they have up to 90 days to process requests for forgiveness once they are submitted to them.  I will continue to keep you informed on this process as we learn more information. Watch your emails for more updates and I will let you all know when we are ready to start sending out the invitations to fill out the forgiveness applications. 

 

We will stay in contact with you as we learn more from SBA. We plan to make the application for forgiveness as streamlined and efficient as possible through an online platform that we will send out to you in an invitation email when that time comes.  If you have any questions, please contact your respective loan officer or branch personnel as needed, or e-mail us. We are proud to serve you.  

 

Sincerely,

 

Your FFBT SBA Paycheck Protection Loan Team

7/17/2020 Update

Good Morning Everyone,

 

We hope you all are doing well. We wanted to send out a quick email before the weekend to give you some updates on recent developments in the SBA PPP loan program. 

 

As of this time, SBA has not yet provided details on how to report on forgiveness applications, so we are unable to start receiving those yet. 

 

A new Bill is pending in the Senate that would waive documentation for loans under $150k. While not set for a vote yet, the bill could heavily reduce the required work from borrowers with less than $150k. The bill is called “The Paycheck Protection Small Business Forgiveness Act” [congress.gov] and seems to carry some bipartisan support. We will continue to update you all as we hear more, but this is another reason for patience with the process.

 

We will stay in contact with you as we learn more from SBA. We plan to make the application for forgiveness as streamlined and efficient as possible through an online platform that we will send out to you in an invitation email when that time comes.  If you have any questions, please contact your respective loan officer or branch personnel as needed, or e-mail us. We are proud to serve you.  

 

Sincerely,

 

Your FFBT SBA Paycheck Protection Loan Team

6/18/2020 Update

Good Afternoon,

We continue to work with the SBA regarding your PPP loan and have received some helpful information from the American Bankers Association.

The Small Business Administration recently 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.

We have attached the updated forgiveness application and the new EZ forgiveness app with instructions.  Again, we expect continued guidelines and instructions to come from SBA and we will continue to provide updates to you as they are made available to us. Please keep in mind that upon your forgiveness application, the SBA review process may last up to 90 days before fund remittance to reduce the loan balance.  We again thank you for your patience and for the opportunity to serve as your financial partner through this process.

Again, we thank you for the faith that you have placed in our organization and we hope to continue to serve you and your business. Please contact your respective loan officer or branch personnel as needed, or e-mail us. We are proud to serve you.  

Sincerely,

Your FFBT SBA Paycheck Protection Loan Team