May 5, 2020
As your trusted financial partner, we want to help you prepare to apply for PPP loan forgiveness.
We encourage you to begin preparing now based on Frequently Asked Questions (FAQs) issued by the Treasury Department and Interim rules from the SBA.
- PPP loan forgiveness is not automatic; you are required to apply and provide documentation of forgivable expenses to support your application. We will provide application instructions to you via email when it is time to submit your request.
- The PPP program is designed to provide a direct incentive for you to keep your employees on payroll.
- Eligibility to receive loan forgiveness is based on your specific use of the funds during the 8-week period after loan disbursement. As provided in the regulations and guidance from the SBA and the Treasury Department, at least 75% of PPP loan proceeds must be used for payroll expenses and not more than 25% may be used for certain specified non-payroll costs
, including but not limited to the following:
- Interest payments on mortgage obligations (in effect before February 15, 2020);
- Rent payments under lease agreements (in effect before February 15, 2020); and
- Utility payments under service agreements (in effect before February 15, 2020).
The amount of PPP loan forgiveness depends on your total documented expenses over the 8-week period after loan disbursement.
- PPP loan payments are deferred for six months from disbursement date. However, interest will accrue throughout the term of your loan. If your loan is not fully forgiven, you are responsible for any unpaid amounts.
Businesses are the backbone of our economy and we remain deeply committed to supporting our business clients during these uncertain times. We will continue to provide regular updates on this web page as information becomes available.