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PAYCHECK PROTECTION PROGRAM

Below

Items (via PDF file) we will need to process the PPP loan request:

  1. Complete the PPP Payroll Worksheet and submit with documents
  2. Complete Application (use the link below in Step 3)
  3. Articles of Incorporation / Articles of Organization for the borrowing entity
  4. Bylaws / Operating Agreement for the borrowing entity
  5. February 2020 Borrowing entity Bank Statement
  6. All owners Driver’s Licenses (this may be uploaded as a picture)
  7. Owners with 20% or more ownership in the Business applying for the PPP loan must complete SBA Form 912 available as part of this loan application (see item #9)
  8. 1-year (2019 or trailing 12-months) of Payroll Expense verification, which must detail a list of employees, annual gross compensation of each, and country of residence. Payroll documentation can consist of:
    • Payroll summary report (12-months) with breakdown of benefits the company paid (such as vacation, group healthcare benefits, retirement benefits, etc.)  and
    • Payroll tax filings (forms IRS 940 and 941) (for past four quarters).  Also, copies of State and Local Unemployment tax filing data- if not detailed on the payroll summary report.
    • If the borrowing business is an independent contractor or a self-employed individual: provide full year of Form 1099s (if an Independent Contractor) or Schedule C (if Sole Proprietor) from IRS Form 1040.
  9. 2019 (or trailing 12-month) Income Statement for the borrowing entity.
  10. Please print and complete the attached (at the end of the linked application) Statement of Personal History for each owner who has at least 20% ownership of the company.

*These links will take you to a 3rd party site that Community First Bank of Indiana has contracted to securely input your application.
While the bank does not control these sites, they are approved vendors of the bank.

Loan Info Below

As the process of reopening the economy continues, I hope that all of you are remaining healthy and beginning to see signs of recovery in your businesses. While we are not yet close to being fully “open,” we are seeing and hearing encouraging signs from many of our customers.


As many of you may have read or heard, the House of Representatives has passed a bill modifying several items within the Paycheck Protection Program. Key items included a lengthening of the “forgiveness period” from 8 weeks to 24 weeks. This modification would allow an extended period of time in which a borrower can spend the PPP funds and have them forgiven. There has been some discussion in the Senate about a 16-week forgiveness period. We will have to wait and see what time period they settle on, if they pass any changes. Also, the house bill reduces the minimum payroll amount from 75% to 60%, allowing more flexibility in the use of PPP funds. The bill also stretches the deadline to rehire workers and extends the repayment period on unforgiven amounts from two years to five. These should all be positive changes for PPP borrowers and I encourage you to let your Senators know that you support them.


An additional piece of news is that 51 different state banking associations (Puerto Rico is the 51st, in case you were wondering) have, in a letter to the Treasury Department and the U.S. Small Business Administration, called for a de minimus exception for small borrowers that would provide complete PPP loan forgiveness upon the completion of a simplified, one-page attestation. While the de minimus level was not specified, this change would save many hours of documentation and calculation for both borrowers and banks. We also encourage you to support this initiative.


While the timeline for final approval of the proposed changes is not concrete, we hope to see them discussed and passed in the next several days. Until then, we are encouraging our borrowers to continue compiling payroll, utility and interest data. We do not believe it would be productive to complete the forgiveness application prior to a final ruling on the proposed changes. We will continue to notify you as we receive additional information and will be sending you a current application when we start the forgiveness process.


Best wishes for a great weekend and continuing recovery.

Robb Blume
CEO & President
Community First Bank of Indiana

We would like to give you some updated information regarding PPP loan forgiveness. While no formal rule changes or guidance has been issued, a couple of points have been clarified.

First, the current 8 week payroll forgiveness period can begin on either the date the loan is funded or on the date a borrower’s first payroll during that period is funded. All non-payroll expenses should be tracked from date of funding.

Second, the reference to lease payments being part of forgivable uses included Real & Personal property lease payments, meaning that equipment leases are included.

Third, the term “incurred and paid” has been clarified to mean incurred or paid. This means that payroll or other expenses incurred but not yet paid during the forgiveness period can be counted toward forgiveness.

Last, SBA and Treasury have stated that borrowers won’t be penalized for a reduced headcount if employees have been offered employment but have refused to come back. We suggest documenting any employment offers, in writing.

We still expect further guidance to be released but, we do not have a firm date. We do know that there are numerous conversations regarding expanding the forgiveness period, creating a threshold below which all loans would be 100% forgiven, eliminating the 75% payroll requirement and other changes which increase the ease of forgiveness.

State, regional and national banking associations are doing a fine job of lobbying for additional information and an easing of forgiveness requirements. If you are so inclined, it never hurts to urge your representatives to assist on this issue.

We thank you again for your continued patience as we await further instructions on how to process forgiveness requests. We will continue to provide additional communications, as we receive them.

Best wishes for wonderful holiday weekend.

Robb Blume
CEO & President
Community First Bank of Indiana

We are pleased to have been able to help so many organizations secure funds through the SBA Paycheck Protection Program (PPP). The PPP allows for all or a portion of the loan and accrued interest to be forgiven if the proceeds are used for payroll and certain non-payroll costs over the 8 weeks after receiving the loan proceeds. The final Loan Forgiveness Application (“Application”) with borrower instructions was just released by the SBA. You can find the application by clicking the button above.

We are in the process of reviewing the final application and establishing procedures for processing the more than 540 PPP loans that were originated by Community First Bank. We expect to send a formal instruction package on or about June 1, 2020 which will include an electronic means of providing us your Application. We will be encouraging all borrowers to submit their Application and supporting documentation through a secure link on our website. Once we have our secure website open to accept Applications, we will send another email to start the process.

Please do not submit any information at this time. Additional instructions will be sent on or about June 1, 2020. 

The PPP provides all lenders 60 days to approve the Application for the loan forgiveness amount. Although we will strive to process your application as quickly as possible, given the volume of Applications that will be received by Community First Bank we cannot promise that your Application will be processed any faster than 60 days. We will be communicating with all PPP customers throughout this process. We thank you for your patience.

You may contact us at (765) 456-4306 or contact your relationship officer directly.

Sincerely,

Robb Blume
CEO & President
Community First Bank of Indiana

 

If you have questions during business hours (M-F, 9:00am-5:00pm), please call (765) 456-4306.  If you have questions outside of business
hours, please email sba-loans@cfbindiana.com
and include a call back number and a representative will assist you with your questions.