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Updates

Updated PPP Loan Forgiveness Information

We will begin testing our PPP forgiveness software very soon and anticipate a launch date within the next couple of weeks! We will offer training and demonstrations on the software once it is ready. We suggest that all PPP borrowers consider refraining from submitting their forgiveness application until the software platform is available.

The SBA released an updated Interim Final Rule (IFR) for PPP borrowers dated June 22, 2020:

https://home.treasury.gov/system/files/136/PPP--IFR--Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule.pdf

 

Highlights:

  • Clearly states that June 30, 2020 is the last day on which a lender can obtain an SBA loan number for a PPP loan.

 

  • Provides new alternate Loan Forgiveness Application, SBA Form 3508EZ.

 

  • Amends documentation requirements for each forgiveness application (SBA Form 3508 and 3508EZ) related to borrower submission, lender review, and lender submission to the SBA. It also covers lender approval and decline guidelines.

 

  • States that if borrower does not apply for forgiveness within 10 months, or if the SBA determines loan is not eligible for forgiveness, deferment is terminated and the lender must notify borrower to begin making loan payments.

 

  • Revised caps on amount of loan forgiveness offered for owner-employees and self-employed individuals’ own payroll compensation.

 

  • Certain borrower types require a minimum of 10 weeks to be eligible for full forgiveness.

 

This link provides a checklist of information borrowers can begin collecting to make the forgiveness process easier: 

https://www.commencementbank.com/media/dynamic/files/797_PPP_checklist_from_Abrigo_(1).pdf

 

Please contact us at ppp@commencementbank.com with any questions you may have.

 

For more information regarding this program, please visit:

U.S. Department of the Treasury

Small Business Administration

PPP Borrower Application

 

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