FORGIVENESS - REVISED
Paycheck Protection Program (PPP)
IMPORTANT UPDATE as of September 18, 2020
From all of us at American National Bank, we want to thank you for your patience with the PPP forgiveness process. We also wanted to answer some frequent questions you are asking us:
- We continue to monitor developments in Congress related to the proposal to grant blanket forgiveness for PPP loans under $150,000. Congress is in session until September 30th, so we are anticipating some action will be taken on or before this date.
- While the SBA opened its forgiveness portal on August 10th, they have not fully loaded their PPP and EIDL data into the system. Also, we are aware that loans already submitted to the SBA for forgiveness are in a “limbo” status and not under active review. We believe the SBA is working to resolve some issues with their portal before they begin to actively review forgiveness applications.
- Your PPP promissory note states that your payments on the loan are deferred for 6 months from the date the loan was closed, which means some of you are approaching the date when the first payment would be due. However, we are extending this payment deferral period for an additional 10 months (total of 16 months) to provide time for your forgiveness application to be processed once Congress and the SBA sort out some issues. This means that you would not have any payments due until September 2021 or later, depending on when you closed your loan. We will be sending you a one-page agreement to document this extended deferral period in the near future, which you will need to sign and return to us.
- The decision to use an 8-week or a 24-week Covered Period is yours to make. You do not need to notify us of your decision. This is information you would enter into the forgiveness application online once we open the software back up.
- Your deadline to apply for PPP forgiveness is the date that is 10 months after the end of your chosen Covered Period.
Click here to access SBA Form 3508EZ and instructions.
Click here to access the revised SBA Form 3508 and instructions.