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Paycheck Protection Program

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 and the conflict of interest disclosure which can be found HERE.

Loans exceeding $150,000 require Forgiveness Application 3508EZ or 3508, dependent on circumstances.  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.  First Palmetto Bank may be afforded access to the PPP system in advance of many other larger institutions. Although final details regarding the second draw of PPP funding continue to evolve, the formal application to apply for a second PPP loan has been released and can be located HERE.

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 forgiveness 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.