PPP Loan Forgiveness Application and Instructions
As of June 17, 2020 the Small Business Administration has issued new applications and instructions for PPP Loan Forgiveness. In the below links you will find the application, instructions for application and documentation requirements issued by the SBA.
The Small Business Administration and Treasury have not released full details on how to process the loan forgiveness applications. We are awaiting further guidance on application submission to SBA. Once that information is provided to us, we will update you on the loan forgiveness application process with Community Bank here on our website and via email.
On June 3, 2020, the Senate passed H.R. Bill 7010, the Paycheck Protection Flexibility Act. This bill adds new flexibility on spending PPP loan proceeds for PPP borrowers. This new bill contains several new provisions:
- The period for funds to be spent on payroll will be extended from the original 8 weeks to 24 weeks or end of the year, whichever is earlier.
- The percentage of funds borrowers may spend on payroll will be lowered from 75% to 60%.
- The date to rehire workers will be extended to June 30, 2020.
- For any new PPP loans, the loan terms now extend to 5 years.
We are expecting the President to sign the bill soon and the SBA to issue further guidance on these changes. We will update you when the new information is available.
As new information is made available by the SBA, we will provide that to you here. If you need assistance in completing this application, we encourage you to consult your accountant.