PPP Forgiveness Legislative Updates
Although the Bank will begin accepting Forgiveness Applications on Monday, August 3rd, we have stressed that there are still more legislative updates to come that may affect your application. Earlier this week the Senate and the House unveiled bills that will streamline the PPP forgiveness application process. There will be a lot of negotiation before the next relief bill is passed and nothing is guaranteed, but it may be to your benefit to wait to submit your forgiveness application until after the final bill is signed into law. The proposed changes to the forgiveness process are as follows:
Senate – The HEALS Act:
- Automatic forgiveness for PPP loans under $150,000 with borrower attestation;
- A streamlined forgiveness process for loans between $150,000 and $2,000,000; and
- A proposal to let certain small businesses apply for a 2nd round of PPP loans – we will communicate more on this once the final bill is signed into law.
House of Representatives - Paycheck Protection Small Business Forgiveness Act:
- Automatic forgiveness for PPP loans under $150,000 with borrower attestation.
If you complete and submit a Forgiveness Application before the final bill is signed into law, you may be required to complete a separate form for forgiveness. Please note that once a final bill is passed it will likely take at least a couple of weeks for the SBA and Treasury to release updated Interim Final Rules and Forgiveness Applications. We will continue to send information on updated legislation as it becomes available.
Paycheck Protection Program Forgiveness Applications – Acceptance Begins August 3, 2020
If you have a larger loan amount or are eager to submit your Forgiveness Application, the Bank will begin accepting submission applications August 3rd, 2020. Applications will be made available through DocuSign, as well as through a fillable PDF. Please visit our PPP page to request or download your Forgiveness Application. You can also contact your Relationship Manager directly to obtain an application.
Please reach out to your Relationship Manager if you have any questions.
SBA PPP Resources
Visit our website to stay up-to-date on everything we know about the forgiveness process at this time.