On May 15, 2020, the U.S. Small Business Administration (SBA) issued its PPP Loan forgiveness application. We encourage all borrowers to review it thoroughly as you prepare to apply for forgiveness. As part of your preparation process, we continue to encourage you to consult with your legal, tax, accounting and other business advisors to review the most current information available.
For your convenience, below please find the Link to the SBA’s Paycheck Protection Program Loan forgiveness application. As additional reference material, we have also included the Link to the U.S. Chamber of Commerce “Guide to PPP Loan Forgiveness”. Again, please continue to consult with your various business advisors as you navigate the Forgiveness process.
As more information becomes available from the SBA, we will update our website accordingly, and will provide information on how to submit your Forgiveness Application.
The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law on March 27, 2020, contained several programs to provide emergency assistance for small businesses impacted by the COVID-19 pandemic, including the PPP administered by the Small Business Administration (SBA).
The Paycheck Protection Program was designed to provide a direct incentive for small businesses to keep their workers on the payroll by providing each small business a loan with a maximum amount of 2.5 times the average monthly payroll or up to $10 million with funds to be used primarily for payroll expenses. Eligibility for the Paycheck Protection Program is for small businesses, including eligible non-profits, self-employed individuals, independent contractors and others as described in the Small Business Act. More information about the Paycheck Protection Program is available on the SBA Website.
- Forgiveness of loans are subject to applicable requirements as established by the SBA. While the Bank administers the PPP program, forgiveness requirements are determined by the SBA. The Bank does not determine loan forgiveness.
- The Bank, however, does not and cannot provide legal advice regarding forgiveness requests, including whether a borrower meets SBA requirements or what expenses may or may not qualify for forgiveness by the SBA.
- Each applicant is responsible for the completeness and accuracy of their information contained in their PPP loan or forgiveness application/request. Such information may be subject to government review which could impact the terms of the loans and the forgiveness provisions of the loans in the future.
- There may be delays in the process resulting in Community Bank being unable to process loan forgiveness requests due to several factors, including high volumes, SBA requirements, regulations and guidance, incomplete information, limited staffing resources due to COVID-19, and other acts or matters beyond the reasonable control of the Bank. Such delays may result in the inability to process all requests timely under the program requirements in order to obtain forgiveness for loans.
- Community Bank will make every attempt to review, process, and seek approval for forgiveness requests received as soon as possible but makes no guarantees or representations as to processing of applications and processing time.