PAYCHECK PROTECTION PROGRAM
On May 5, 2021, the Small Business Administration announced that the Paycheck Protection Program funding has been exhausted and that the PPP application portal has now stopped accepting applications for loans from most lenders.
While First Bank can no longer accept new applications or finalize existing applications that have not been registered with the SBA, PPP funds may still be available for loans from designated Community Development Financial Institutions (CDFIs), Minority Deposit Institutions (MDIs), Community Development Corporations and certain microlenders.
Minority Deposit Institutions
Loan Forgiveness Instructions and Applications
EIDL ADVANCE NOTICE (Updated 1/8/2021)
The Small Business Association (SBA) will no longer deduct Economic Injury Disaster Loan (EIDL) Advances from forgiveness payments remitted to PPP lenders. This change will be applied to SBA forgiveness payments with a status of “Payment Confirmed” dated December 29, 2020 or later.
For those loans where SBA automatically remitted a forgiveness payment to a PPP lender that was reduced by an EIDL Advance, SBA will automatically remit a reconciliation payment to the PPP lender for the previously-deducted EIDL Advance amount, plus interest through the remittance date.
SBA will identify forgiveness payments that were reduced by EIDL Advances and automatically remit a reconciliation payment to the PPP lender.
FORGIVENESS INFORMATION (1/19/2021)
SBA has released a new easy forgiveness form for PPP loans on January 20, 2021.
Most borrowers with loans $150,000 and below will use the SBA Form 3508S Please read through the instructions and application to see if you qualify for this application.
Most borrowers above $150,000 will use the SBA Form 3508EZ. Please read through the instructions and application to see if you qualify for this application.
For those larger borrowers that do not qualify for the SBA Form 3508EZ, please use the SBA Form 3508 (revised June 16, 2020).
DEFERRAL PAYMENT GUIDANCE (Updated 10/14/2020)
The original payment deferral period (6 months) on your PPP loan has been extended to the date that the SBA submits forgiveness payment to the lender. This deferral will be automatic in accordance with federal regulations. If borrowers do not apply for loan forgiveness, the deferral period automatically ends 10 months after the end of the borrowers covered period. If you have a remaining balance after the SBA has remitted forgiveness payment to the bank, you can either payoff the remaining balance or a please contact First Bank for further assistance.
The SBA has provided common questions and answers concerning the PPP loan. Please see their FAQ (updated 10-7-2020).
For any additional questions on the forgiveness of your PPP loans, please contact the First Bank PPP Team at [email protected]