PPP Loan Forgiveness

SBA Paycheck Protection Program Loan Forgiveness Information

Thank you for the opportunity to assist your with your Paycheck Protection Program loan.

On June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act (the “Flexibility Act”), which amends the CARES Act and modifies the forgiveness provisions for Paycheck Protection Program (“PPP”) loans. The Small Business Administration (“SBA”) and the Department of the Treasury (Treasury)  also released a new PPP Loan Forgiveness Application entitled Form 3508EZ.  This application significantly streamlines the forgiveness application process for certain qualifying borrowers.  Additionally, SBA and Treasury released a revised PPP Loan Forgiveness Application Form 3508 and instructions which incorporates changes recently made by the PPP Flexibility Act.  
 
Under the PPP your loan may be forgiven in whole or part by the SBA.  The unforgiven portion, if any, will continue as a loan by CSB under your note with us.  The portion of your PPP loan that is forgiven will depend on how you spend the loan proceeds and the specific facts you provide in your loan forgiveness application. 


Go directly to SBA Loan Forgiveness application

 
 The following Q&A addresses common questions regarding the forgiveness process; however, these answers are subject to change.
 
What are the requirements for using the Form 3508EZ?
You (the Borrower) can apply for forgiveness of your PPP loan using SBA Form 3508EZ if you meet at least one of the three criteria below.
The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
OR
The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or Alternative Pay Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, "employees means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower did not reduce the number of employees  or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020.  Also ignore reductions in an employee's hours that the Borrower offered to restore and the employee refused.  See 85 FR 33004, 33007 (June 1, 2020) for more details:

OR

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

 

What documentation should you accumulate to support your forgiveness application?

Form 3508EZ Application Instructions outlines required documents on page four (4).
Form 3508 Application Instructions  outlines required documents on page six (6).

Both of the above referenced documents can also be found by visiting: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

 

Will CSB prepare our forgiveness application? 

No.  Like the initial PPP application, the responsibility for preparing the forgiveness application and making the required certifications lies with the borrower.  The bank will review your application and calculations, but is relying upon the certifications and documentation provided by the borrower in doing so.
 
We recommend that you consult with your accountant, bookkeeping service or legal counsel to assist you as needed.


When do I file my forgiveness application?

You have ten months from the end of your covered period to file your forgiveness application. 
 
As mentioned above, the Flexibility Act extends the covered period to 24 weeks; however, you may choose to use the eight week period following the disbursement of your loan as the covered period. 

Good recordkeeping and a detailed application are the keys to maximizing the amount of your PPP loan which will be forgiven by the SBA.  We encourage you to be diligent in keeping track of your staffing levels and your eligible expenditures of your PPP loan proceeds.

 

Can I review the PPP Forgiveness Application prior to starting the process with CSB? 

Yes,  below are links to view the two SBA Forgiveness Applications. 



Start your loan Forgiveness Application


Select the SBA Form below that meets your needs to start your application.  Next choose your CSB Relationship Manager, complete your forgiveness application online, and upload the supporting documentation for your application.  If you run out of time you can save and pick up where you left off another time.