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PPP Forgiveness Update June 17, 2020

Hello again, PPP customers. I’m happy to be writing to report on good news. What follows, in blue, is an excerpt from a newsletter, sent today, from the American Bankers Association:

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.

The bolded/underlined emphasis above was added by me to emphasize that a borrower only needs to meet one of the criteria in order to use the streamlined form. This should encompass a very high percentage of our borrowers. We are also providing links below to the referenced documents and information. These may help in your preparation and understanding of the process and required documentation. We want to emphasize that we will NOT begin taking applications until July 1, at the earliest. We will do so through a link on our website. Please do not complete and send the applications now. They may still change and we want to avoid duplication of effort. The application that we post on our website will prefill certain information and will save time for both you and the bank.

As a reminder, if you were not a CFB customer prior to the PPP and have had a satisfactory experience with us, we would love to expand our relationship! We have a tremendous staff of commercial, mortgage and consumer lenders, a great treasury management officer, and some of the friendliest and most helpful retail bankers you will ever find. We would love the opportunity to continue to be your bank beyond the PPP process! Our locations can be located on our website – www.cfbindiana.com/locations.

Links to referenced documents:

The SBA has released a new PPP Loan Forgiveness Form, Form 3508EZ:

 

Also, the SBA released a revised and shorter version of the full PPP Loan Forgiveness Application.

Thank you!

Robb Blume

CEO & President

Community First Bank of Indiana

Email: rblume@cfbindiana.com

Direct Dial: (765) 456-4312