Paycheck Protection Program (PPP)
Important Update on PPP Loan Forgiveness - October 13, 2020
Independent Bank has been closely monitoring updates from the Treasury and the SBA in respect to PPP Loan Forgiveness. We understand that you are naturally anxious to begin the forgiveness process, and this is very important to your business. Please know that there is still no rush to apply for forgiveness. You have up to 10-months after your 8-week or 24-week covered period to make your application. During this time, no payments will be due. You will receive a letter from the bank in the coming week to formally notify you of the extension of the first payment date.
Over the last few weeks, we have been working hard to prepare, test, and pilot our forgiveness process so it is easy and efficient for you. A checklist will be provided to assist you in preparing and gathering the proper documentation for the application. In the coming weeks, we will be opening our secure forgiveness portal to begin accepting the 3508 and 3508EZ applications for borrowers with loans greater than $50,000. Your i-bank Account Officer will email or call you with instructions to access the secure portal when we are ready to begin accepting applications.
If your loan is $50,000 or less, you will be able to apply for forgiveness using the new simplified application (SBA Form 3508S) that was released by the SBA on Thursday, October 8th. Under the new guidance, borrowers using the SBA Form 3508S are exempt from any reductions in full-time-equivalent (FTE) employees and reductions in employee salaries and wages. Documentation and certain certifications will still be required with this more streamlined application. The portal is currently being updated to include this new application and your Account Officer will reach out to you it is ready to launch.
As PPP forgiveness continues to unfold, we expect that the SBA will continue to answer FAQs and provide more clarity to the forgiveness process. As a service to you, we will also have an “Ask the Accountant” feature in the portal where you can email questions and receive answers from an accounting firm specializing in the PPP forgiveness process. Additional details on this service will be forthcoming.
If you have any questions, please contact your i-bank Account Officer