Paycheck Protection Program
4/1/2021
We are not accepting online PPP requests at this time. Please contact your branch manager for more information.
1/19/2021 Update: Apply for New Round of PPP
A new round of PPP has begun. Clients who participated in the first round are eligible for this second round of funding. The SBA has yet to determine the final program rules, but at a minimum, the rules makes the SBA PPP available to businesses with 300 or fewer employees, that saw a 25% or greater revenue drop in 2020 compared to 2019, and that have used the full amount of their first-draw PPP loan.
Here is additional information that may be useful to you:
1/8/2021 Update: Forgiveness Applications and New Round of PPP
With the passage and signing of the most recent stimulus, new rules on SBA PPP forgiveness and a new round of loan funding has been approved.
Forgiveness: We have put on hold the processing of inviting clients to apply for forgiveness on loans less than $50,000. Soon, a simpler process requiring just a one page application will be required for loans less than $150,000. When that is released, we will begin sending invitations to the forgiveness application.
New Loans: A new round of PPP will be opening shortly. Clients who participated in the first round are eligible for this second round of funding. The SBA has yet to determine the program rules, but at a minimum, the rules makes the SBA PPP available to businesses with 300 or fewer employees, that saw a 25% or greater revenue drop in 2020 compared to 2019, and that have used the full amount of their first-draw PPP loan.
12/9/2020 Update: Amboy has begun sending forgiveness applications via email to those who received less than $50,000.
If you have not yet received your application link, you should shortly, or you may contact your Amboy lender. As soon as we receive better guidance regarding loans over $50,000, we will be in touch with those clients.
10/19/20 Update: SBA and Treasury Announce Simpler Forgiveness for Loans $50,000 and Less; Payment Deferral Period Clarification
The SBA, in conjunction with the Treasury Department, has issued new guidance allowing for a streamlined loan forgiveness process. While the application still calls for the borrower to represent and certify important elements of the program, it does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. At this time the simplified process is restricted to
businesses with loans $50,000 and less. We understand the SBA and Treasury are in discussions to potentially expand the simpler process to higher dollar loans, but expansion is likely to require additional congressional authorization.
Currently the bank is working on our approach to automate acceptance and processing of these $50,000 and less applications in a secure manner. We expect to provide more details shortly.
The SBA has also provided guidance clarifying its payment deferral period. The Paycheck Protection Flexibility Act of 2020, P.L. 116-142, extended the deferral period for loan payments to either (1) the date that SBA remits the borrower’s loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. Before the Flexibility Act became law June 5, the deferral period could end after six months. For those using the 8 week covered period the deferral will be for a total of 12 months. We believe this is good news for borrowers as it allows time for the SBA and Treasury Department to continue to refine and improve the Program.
6/23/20 Update: Interim Final Rules for Forgiveness Released
Officially codified revisions of rules and guidelines concerning forgiveness.
6/17/20 Update: SBA Streamlines PPP Forgiveness Application for Many PPP Borrowers
The Small Business Administration today released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.
Download Form 3508EZ
Download the instructions for Form 3508EZ
Download the revised Form 3508
Download the instructions for Form 3508
6/11/2020 Update: The Payment Protection Program Flexibility Act, which provides greater flexibility for PPP borrowers, has been signed into law.
The Interim Final Rule includes the following:
- Confirms that borrowers that use less than 60% of their PPP loan amount for payroll costs during the forgiveness covered period will still be eligible for partial loan forgiveness.
- Extends the end date of the “covered period” for a PPP loan from June 30, 2020 to Dec. 31, 2020.
- Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years at the mutual agreement of the borrower and lender.
- Extends the loan forgiveness period from eight weeks to 24 weeks. (For loans made prior to June 5, 2020, borrowers may opt to keep the forgiveness period at eight weeks.)
- Clarifies that if a borrower submits its forgiveness application within 10 months of the end of the loan forgiveness period, the borrower will not have to make any payments on the loan before the date SBA remits the forgiven amount to the lender.
- Reiterates that the last day a lender can obtain an SBA loan number for a PPP loan is June 30, 2020.
In general, these changes will allow for more flexibility around term of use, forgiveness use, qualifying time period, and how to mitigate forgiveness discounts. We recommend you consider how these changes impact your use of the loan and how it can best be forgiven, paid, or used long-term. If you have a PPP loan through Amboy, soon, we will provide what additional information is available and guidance on next steps.
5/18/2020 Update: For those we were able to help with a Paycheck Protection Program (PPP) loan, please read the below for information on Loan Forgiveness. For more information on PPP, visit here.
We hope the funds you obtained with the Paycheck Protection Program have helped your business keep employees on payroll, despite the economic hardships related to COVID-19. We will get through this together.
The Small Business Administration and Treasury Department recently released an application that borrowers must complete in order to have their Paycheck Protection Program loan forgiven. The form includes detailed information about the costs that are eligible for forgiveness and instructions for calculating those costs. The form can be found here.
The SBA also announced several measures intended to reduce compliance burden and simplify the forgiveness process for borrowers, including a safe harbor from loan forgiveness reduction for borrowers that were able to rehire employees who had previously been let go or laid off by June 30, 2020. It also included an exemption from forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.
Finally, the SBA provided an option for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with their regular payroll cycles, and flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan. For more information, visit the SBA website.
Business is changing, and we have the tools to reflect the new way you are operating. Payroll management, remote capture, night drop, digital banking and merchant services are just some of the ways we can help your business acclimate to the changing environment. Please contact your branch manager for more information on these and other services.
5/5/2020 Update: Here are some answers to some frequently asked questions, courtesy of the Treasury Department. The list is updated regularly.
4/17/2020 Update: Be aware of scams involving this program. Applications will only be taken by SBA-affiliated lenders. More info is here.