Paycheck Protection Loan Forgiveness

Paycheck Protection Program Loans

About PPP Loan Forgiveness

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.  The United States Department of the Treasury and the Small Business Administration are working to provide final guidance on the forgiveness rules for the loans.  On Friday, May 15th, the SBA released the Paycheck Protection Program Forgiveness Application. Additionally, on Wednesday, June 17th, 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. 

As noted by the US Department of the Treasury, you will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments within the specified time frame.  You will also owe money if you do not maintain your staff and payroll.

The Paycheck Protection Program Flexibility Act of 2020 now provides additional flexibility for the use of Paycheck Protection Program (PPP) loan proceeds. The bill also changes the time period in which the proceeds can be used as well as the term of any unforgiven portion of the loan. Highlights of the bill include:

  • Extension of the deadline to use PPP loan proceeds from eight weeks to 24 weeks
  • Reduction in the share of funding that must be directed toward payroll costs from 75% to 60%
  • Adjustment of the deadline to rehire furloughed employees

Click Here for additional information and guidelines from the U.S. Department of the Treasury and guidelines on loan forgiveness.

For borrowers completing the Paycheck Protection Program Loan Forgiveness Application, Click Here for instructions.
Click Here for the Paycheck Protection Program Forgiveness Application.

For Borrowers eligible to complete the EZ Paycheck Protection Program Loan Forgiveness Application, Click Here for instructions.
Click Here for the EZ Paycheck Protection Program Forgiveness application.

When preparing your application for forgiveness*, please be sure to review the guidelines, instructions and application in its entirety. Fully complete applications accompanied by the required documentation is imperative to be considered for forgiveness. Click Here for a checklist detailing the documentation that must be submitted along with your application. 

*F&M Trust will enter your loan number and the bank’s lender number. Please leave those fields in the application blank.

You are eligible to apply for loan forgiveness following the eight or 24-week covered period and may submit your application at that time.

How to Apply for PPP Loan Forgiveness

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

2. Gather ALL documentation outlined on the PPP Forgiveness Checklist.
3. 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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