Small Business Administration (SBA) Paycheck Protection Program (PPP): Loan Forgiveness
Thank you for giving us the opportunity to serve you through the SBA Paycheck Protection Program (PPP). We are proud to be able to assist you and our communities during this challenging time.
We understand many of you might have questions regarding the SBA’s PPP loan forgiveness process. Currently, final SBA guidance on this topic has not been released. We anticipate the U.S. Department of the Treasury and the SBA will release final details and guidance in the coming weeks. In the meantime, please refer to the U.S. Department of the Treasury’s “CARES Act Assistance for Small Businesses” webpage, HERE, and frequent their FAQ list, which is updated regularly.
For details on the PPP loan forgiveness process and information on how you can begin to prepare your Application for Loan Forgiveness, please visit:
- The Guide to PPP Loan Forgiveness prepared by the U.S. Chamber of Commerce, HERE.
- The U.S. Department of the Treasury’s “CARES Act Assistance for Small Businesses” webpage, HERE.
- The SBA’s PPP webpage, HERE.
The SBA recently announced beginning August 10, 2020, they will be opening the PPP Forgiveness Submission Portal. Please note, this date is subject to change, per the SBA.
A key takeaway from the SBA’s recent announcement:
- PPP loan payments were originally deferred for six (6) months but have been further deferred by the SBA. Payments on PPP loans will not begin until AFTER the SBA has remitted forgiveness funds.
Presently, there is legislation pending in Congress called the HEALS Act that will significantly simplify the PPP loan forgiveness process. We ask that you wait to begin the application process. It is more than likely that the application forms and requirements will change, and early application submissions will result in duplicated efforts.
We understand your sense of urgency and eagerness to submit your application for loan forgiveness. Once the U.S. Treasury and SBA have released updated forgiveness guidance, we will begin accepting applications to ensure we are able to extend our application process at the high level of personal service to which our customers have grown accustomed. Affiliated Bank will continue to monitor the SBA’s latest guidance and communicate it accordingly via this webpage or email.
We are currently developing a streamlined and efficient online application for loan forgiveness, created with you top-of-mind, and will email you as soon as we are ready to begin accepting applications. Please be on the lookout for an email from Affiliated Bank in the next few weeks with more details on our loan forgiveness application process. Please do not feel rushed to apply for loan forgiveness or submit your documentation. For now, it is most important to focus on your business and employees and keep diligent track of all eligible expenses and their accompanying documentation for your covered forgiveness period.
In the meantime:
To help you prepare during your covered forgiveness period, we encourage you to begin reviewing the following instructions and applications to familiarize yourself with the loan forgiveness process. You can start preparing for the application process now by gathering the required documentation, per SBA guidelines, listed in the instructions and applications below.
For your convenience, the following are direct links to the U.S. Treasury’s website for each of the Loan Forgiveness Forms:
- Loan Forgiveness Application – Form 3508 (revised 6/16/2020)
- Loan Forgiveness Application Instructions (revised 6/16/2020)
- EZ Loan Forgiveness Application – Form 3508EZ
- EZ Loan Forgiveness Application Instructions
Should you have any questions, please feel free to contact your Affiliated Banker.
Updated 8/6/2020. This information was obtained from the SBA, U.S. Department of the Treasury, U.S. Chamber of Commerce, and Compliance Alliance. All the above information is subject to change, per SBA guidelines. Affiliated Bank does not have any influence over the direction of the SBA’s loan forgiveness proceedings.