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Paycheck Protection Program

SBA PPP Application Process: March 30, 2021 UPDATE

On March 30, 2021, President Biden signed a bill extending the SBA’s Paycheck Protection Program for two more months. The program was set to expire on March 31, 2021. The new deadline is May 31, 2021 and the SBA will also have an additional 30 days to process loan applications that are made by the new May 31st deadline.


First Palmetto will continue to accept and process SBA PPP applications through the new deadline of May 31, 2021. As always, please feel free to contact your local banker if you have any questions or if we can be of any assistance to you.

 

SBA PPP Application Process: March 3, 2021 UPDATE

SBA has released a new interim final rule (HERE) as well as revised applications for first and second-draw loans. The new interim final rule allows individuals who file a Form 1040, Schedule C to calculate their loan amount using gross income.

The interim final rule states that the calculation change only applies to loans that are approved after the effective date of March 3, 2021.

Loans that have already been approved cannot be increased using the new calculation. The revised applications, including the application for Schedule C filers, are available by clicking the links below:

 

SBA PPP Forgiveness Process: January 20, 2021 UPDATE

SBA has released updated loan forgiveness forms for the Paycheck Protection Program along with an updated interim final rule on PPP forgiveness and a new conflict of interest disclosure.

Streamlined forgiveness for PPP loans of $150,000 or less is now available by filling out the newly published 3508S Forgiveness Application which can be found HERE.

Loans exceeding $150,000 require Forgiveness Application 3508EZ or 3508, dependent upon circumstances. Here is a link to each updated form: Form 3508EZ and Form 3508. Contact your local banker if you have questions regarding your forgiveness application.

We encourage you to continue referencing official government websites so you can remain informed.  A comprehensive list of official updates can be referenced at the US Treasury Website: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

 

SBA Paycheck Protection Program Amendments: January 09, 2021 UPDATE

On December 27, 2020 President Trump signed into law legislation providing for a second round of small business funding through the Paycheck Protection Program (“PPP”).  On January 6, 2021 the Small Business Administration (“SBA”) and the US Treasury released official guidance on the new law which can be found HERE and HERE.  First Palmetto Bank will be a participating PPP lender under the new law.

On January 8, 2021 SBA issued a press release summarizing key timelines and processes which can be found HERE. The formal application to apply for a second PPP loan has been released and can be located HERE.

The current applications can be located HERE and HERE (for Schedule C filers).

You are encouraged to consult with your local financial and legal advisors regarding your eligibility for a second PPP loan. The following general guidelines should be considered:

  • Second PPP loan borrowers must employ 300 employees or fewer.
  • Second PPP loan borrowers must have used or will use the full amount of their first PPP loan.
  • Second PPP loan borrowers must have suffered a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019.
  • The second PPP loan is limited to 2.5 times average monthly payroll with a maximum loan amount of $2,000,000.  The maximum PPP loan amount for borrowers assigned to industry NAICS code 72 (accommodation and food services) is limited to 3.5 times average monthly payroll.
  • The forgiveness application will be simplified for first PPP loans up to $150,000.

We encourage you to continue referencing official government websites so you can remain informed.  A comprehensive list of official updates can be referenced at the US Treasury Website: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

Please reference this webpage frequently as additional updates are provided and more information becomes available regarding the new law.  As always, please feel free to contact your local banker if you have any questions or if we can be of any assistance to you.

 

Please continue educating yourself about the PPP program. You can access current information from the following:

US Treasury: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

SBA: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

First Palmetto Updates: https://www.firstpalmetto.com/ppp/ 

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We look forward to working with you on the Paycheck Protection Plan (PPP) process. Like you, we receive and interpret updated information as it is made publicly-available. Work is underway to incorporate the most recent round of guidance, and we'll continue to adapt as new guidance is released to serve you as efficiently as possible.  Thank you for your patience as we navigate this process together.  We appreciate the opportunity to serve you.

 

Important Disclosure Information: First Palmetto Bank will process your application for loan forgiveness as the originating lender for your PPP loan based on the guidance and parameters established by the SBA or US Treasury, which may be subject to change. The SBA and/or US Treasury, and not First Palmetto Bank, sets criteria for loan forgiveness, including eligibility criteria and the parameters that determine how much of your loan may be forgiven. The SBA or US Treasury may instruct First Palmetto Bank to hold your loan forgiveness application if it decides to conduct a review of your application, or it may instruct the Bank to deny your loan forgiveness application. In its guidance, the SBA has indicated the reasons why it may decide to review an application for loan forgiveness.