In early June, we let our PPP borrowers know that we were expecting further guidance about the forgiveness of Paycheck Protection Program (PPP) loans. We had hoped that by this time we would have an electronic forgiveness application available for you.
We know that you may be uneasy about the forgiveness process and timing. We can assure you that we will provide sufficient time before the deadline, which was recently extended to 10 months following the end of your covered loan period.
There are several factors causing the delay in getting the forgiveness instructions to you. All involve ensuring we provide the easiest and most timely solution for you.
Some of these factors include:
- There is discussion within Congress at this time about further changing the process and requirements. There is even discussion about significantly reducing the requirement for forgiveness paperwork for some borrowers. When/if these changes are implemented, the forms and process will change once again.
- The SBA has updated the forgiveness paperwork a number of times in recent weeks, which is causing rework for the software that is being designed to make this easier for you.
- The SBA has not offered a way for banks to submit completed forgiveness forms from our customers to them, so we are unsure what that process will entail. This means that at the present time we cannot confidently ask you for information and back-up materials.
We have appreciated your patience with us as we navigate the complexities of the PPP loan forgiveness process and we will send you detailed instructions for applying for forgiveness as soon as possible.
We know that now, more than ever, our local businesses are the heart of our communities, and we are doing our best to ensure you won’t miss a beat. Thank you for that opportunity.