At F&M Trust, we understand that forgiveness for your Paycheck Protection Program (PPP) loan is important to your business. 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:
Extended coverage - The covered period of PPP loans was extended from 8 weeks to 24 weeks (168 days) from the date the loan was disbursed. Taking advantage of the full 24 weeks may give you additional time to take steps that will help you achieve full loan forgiveness. 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.
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. If the loan is fully forgiven, the borrower is not responsible for any payments.
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. Interest accrues during the time between the disbursement of the loan and SBA remittance of the forgiveness amount. The borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven.
Guidance continues to change - The U.S. Department of the Treasury and the Small Business Administration (SBA) continue to issue new guidance. Rest assured, we will share updates with you as new information about the Paycheck Protection Program forgiveness process becomes available. In the meantime, please retain receipts and documentation detailing how your PPP funds were spent.
Have questions or need help? Contact Us.
As 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. On May 15, 2020, the SBA released the Paycheck Protection Program Forgiveness Application. 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.UPDATE: On January 19, 2021, the SBA released revised loan forgiveness forms for the Paycheck Protection Program. The revised forms include a streamlined forgiveness application for all PPP loans of $150,000 or less. An eligible borrower that received a PPP loan of $150,000 or less should use the new SBA Form 3508S.
1. Carefully review the PPP Loan Forgiveness Guidelines released by the Small Business Administration and US Department of the Treasury.
2. Carefully review and fully complete the SBA PPP Loan Forgiveness Application or PPP Loan Forgiveness Application EZ Form or PPP Loan Forgiveness Application Form 3508S.
3. Gather ALL documentation outlined on the PPP Forgiveness Checklist.
4. Upload the completed application and ALL required documents via our Secure File Transfer (please use 'PPP Forgiveness' in the attention to field).
* Important Note: In order to be considered for loan forgiveness, it is extremely important that the application is complete and is accompanied by the appropriate documentation.
F&M Trust continues to monitor the PPP Loan Forgiveness and will provide timely communications to our borrowers in the event new guidance is issued. Additionally, we stand ready to assist in the event you need help navigating this process. Please contact your F&M Trust Relationship Manager with questions at any time. Thank you for your business.
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